Cobalt gets early termination for Rowan Reliance drillship

Cobalt International Energy Inc., Houston, has entered into an amendment to its drilling contract with Rowan (UK) Reliance Ltd., an affiliate of Rowan Cos. PLC, providing for the early termination of Cobalt’s long-term drilling contract for the Rowan Reliance drillship.

The drilling contract was originally scheduled to terminate on Feb. 1, 2018, and the amendment provides for a contract termination date of Mar. 31, 2017. Cobalt will save 45% of the contract value between the original termination date and the new termination date, or $80 million, and will pay to Rowan the remainder of $98 million.

Cobalt also commits to use Rowan as its exclusive provider of drilling services for 5 years at market rates as determined by normal indices.

Delivered to Cobalt in early 2015, the newbuild ultradeepwater dynamically positioned drillship is capable of operating in 12,000 ft of water and drilling to measured depths of 40,000 ft. It has a 2.5 million-lb hookload capacity and two seven-ram blowout preventer systems.

It has primarily performed appraisal operations at the North Platte Inboard Lower Tertiary discovery in the Gulf of Mexico. Earlier this year, it drilled the Goodfellow No. 1 exploration well that failed to encounter hydrocarbons.

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


Making DDoS Mitigation Part of Your Incident Response Plan: Critical Steps and Best Practices

Like a new virulent strain of flu, the impact of a distributed denial of service (DDoS) attack is...

The Multi-Tax Challenge of Managing Excise Tax and Sales Tax

To be able to accurately calculate multiple tax types, companies must be prepared to continually ...

Operational Analytics in the Power Industry

Cloud computing, smart grids, and other technologies are changing transmission and distribution. ...

Maximizing Operational Excellence

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