Pemex has abandoned a third rig contract with Paragon Offshore as the Mexico state-owned company reduces spending.
The company notified Pargon this week to confirm it would be returning the L781 jack-up rig after services weren’t approved.
It comes a week after receiving two other early termination notices.
Pemex also terminated service and drilling contracts with Diamond Offshore Drilling in February.
Earlier this week, Pemex’s Exploration and Production director Gustavo Hernandez was temporarily reassigned to a new role within the company a week after a rig collapsed kill two workers in the Gulf of Mexico.
Seven workers died and at least 238,000 barrels of crude were lost after an explosion at a Pemex rig on April 1.
Pemex reported a loss of $6.5 billion in the first quarter as crude production slid and international oil prices fell. The company’s oil production has fallen for 10 straight years, and it’s banking on the entrance of foreign producers into the country to reverse the trend.
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