Statoil has issued a cancellation notice to Songa Offshore for one of its rigs.
The Norwegian operator has pulled out of a drilling contract for the Songa Trym. The rig, which is currently deployed on the Tarvos well, will be stacked in early November.
Songa will receive a “contractual cancellation fee based on the current full day rate of $377,000 and the contractual end date of early March 2016”, according to a spokesperson.
The rig cancellation comes a week after Statoil was forced to push back first production for its flagship Mariner project by a year.
The firm blamed a backlog of work in a South Korean shipyard for the knock-back, which will result in an additional $700million in costs.
To hear UK managing director Tove Stuhr Sjoblom discuss repercussions go here.