Pemex ends drilling deal with Seadrill

Pemex ends drilling deal with Seadrill

Mexican oil company Pemex has terminated a drilling contract with Seadrill over the West Pegasus offshore drilling rig.

The driller has disputed the grounds for termination and is reviewing its legal options.

During the second quarter of 2015 Seadrill signed a provisional commitment for a two-year extension to the contract with Pemex for the West Pegasus. In
conjunction with the extension, the dayrate for the remaining term of the initial contract was reduced. The extension of the contract was finalized during
the first quarter of 2016.

As part of this agreement, Seadrill and Seamex , Seadrill’s 50% owned joint venture with Fintech, agreed to reduce the dayrate on five jack-ups for a
period of 365 days. The agreement to reduce the dayrates of the existing contracts was contingent upon final confirmation of the two-year extension of
the West Pegasus by Pemex management, Seadrill said.

The driller further said that in the event of termination, Seadrill and Seamex are entitled to recover the dayrate concessions as well as the demobilization for the West Pegasus. In addition, Seadrill will seek reimbursement of certain costs incurred in anticipation of the extension, the company added.

offshore Energy Today

Related News: Seadrill gets Termination of Rig Contract

Offshore drilling contractor Seadrill has received another notice of termination for convenience from the current operator related to the contract for the West Hercules semi-sub rig.

According to Seadrill, the 2008-built West Hercules was originally contracted for drilling in Norway with North Atlantic Drilling who took over management of the rig in 2012.

On contract with Statoil since January 31, 2013, the rig has carried out an exploration campaign offshore Newfoundland in Canada for the past 18 months. The contract for West Hercules was originally to expire on January 31, 2017.

According to the original plan, the Aasta Hansteen licence was to take over the rig in the second quarter of 2016 for a drilling campaign to be started around July 1, 2016.

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