Cobalt, Rowan amend drillship contract

Offshore staff

HOUSTONCobalt International Energy Inc. and Rowan (UK) Reliance Ltd. have signed an early termination agreement for the Rowan Reliance drillship.

The drilling contract was originally scheduled to end on Feb. 1, 2018, but will now end on March 31, 2017.

According to Cobalt, the amended contract will save the company 45% of the contract value between the original termination date and the new termination date, or approximately $80 million. In addition, it will pay Rowan the remainder of approximately $98 million.

The company also commits to use Rowan as its exclusive provider of drilling services for five years at market rates as determined by normal indices.

Cobalt CEO Timothy J. Cutt said: “We are very glad to reach an agreement with Rowan that helps our balance sheet in the near term and secures a strong relationship with Rowan for the long term.”

09/16/2016

Share your news with Offshore at news@offshore-mag.com

 

Did You Like this Article? Get All the Energy Industry News Delivered to Your Inbox

Subscribe to an email newsletter today at no cost and receive the latest news and information.

 Subscribe Now

Whitepapers

The Time is Right for Optimum Reliability: Capital-Intensive Industries and Asset Performance Management

Imagine a plant that is no longer at risk of a random shutdown. Imagine not worrying about losing...

Going Digital: The New Normal in Oil & Gas

In this whitepaper you will learn how Keystone Engineering, ONGC, and Saipem are using software t...

Maximizing Operational Excellence

In a recent survey conducted by PennEnergy Research, 70% of surveyed energy industry professional...

Leveraging the Power of Information in the Energy Industry

Information Governance is about more than compliance. It’s about using your information to drive ...