Total terminates ultra deepwater drillship Apollo, bringing a second long-term drilling rig cancellation to owners Ocean Rig in under a week.
Owners Ocean Rig announced the news stating that Total had only cancelled the contract for their own convenience.
Total Terminates Ultra Drillship Apollo
Ocean Rig refused to elaborate on any further reasons behind the move but added, that under the contract, they are entitled to a termination fee from Total of between 50% to 95% of the drillship’s day rate for the remainder of the contract.
The Ocean Rig Apollo, a 7th generation drillship, was launched in January 2015 has been on contract to Total since that time operating offshore Congo, Central Africa.
Ocean Rig stated that they would now look to demobilise and start marketing Apollo which it said is now available for new contract agreements.
Total’s cancellation of Apollo comes hot on the heels of Premier Oil’s cancellation of the Ocean Rig Eirik Raude, that was on contract in the South Atlantic.
Ocean Rig CEO, George Economou, said: “It is really regrettable that two of our clients have decided to terminate drilling contracts for convenience.”
“This is a reminder of the extremely challenging times facing the offshore drilling industry and oil companies taking unprecedented action to reduce their capital expenditures.”
“The prospects for the industry remain bleak and we currently see limited prospects of a recovery before 2018 at the earliest.”
Ocean Rig Apollo
Launch in January 2015, from Samsung Heavy Industries’ Geoje Shipyard in Korea, the Ocean Rig Apollo is a 7th generation ultra deepwater drillship.
Apollo has been designed to operated in water depths ranging 1,640 feet (500m) to 12,000 feet (3,650m), and drill to a maximum depth of 40,000 feet (12,192m).