Diamond Offshore -2.3% as Statoil cancels rig contract eight months early

|About: Diamond Offshore Drilling Inc. (DO)|By:, SA News Editor

Diamond Offshore (DO -2.3%) says Statoil (STO -1.9%) has canceled the rental contract for its Ocean Vanguard semi-submersible rig eight months earlier than expected, confirming an earlier report.

STO says the termination is due to "technical aspects of the rig," without offering a further explanation; DO says it disputes STO's basis for canceling the contract and will defend its rights under the drilling contract.

The rig had been expected to remain on contract for STO until next February at a rate of $454K/day.