HOUSTON – Cobalt 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.”
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