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.