Shell cancels contract for Transocean rig

Royal Dutch Shell has terminated its contract for Transocean Ltd.’s harsh-environment semisubmersible Polar Pioneer prior to the contract’s expiration in July 2017. Transocean says that it will be compensated for the early termination through a lump-sum payment that includes adjustments for reduced operating costs and demobilization to Norway.

Although Shell did not issue a statement on its decision to cancel its lease for the Polar Pioneer, Shell likely canceled its contract for the rig due to the company’s exit from its Alaskan exploration campaign, according to Fuel Fix.

Shell’s decision to terminate its contract with the Polar Pioneer is the second cancellation that Transocean has received this month, according to UPI, which reported that Statoil has terminated its contract for the Discover Americas drillship.

UPI noted that more than 40% of Transocean’s 18 ultra-deepwater floaters are currently not contracted, a number that does not include rigs that Transocean has already stacked or idled.

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 ...