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


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.

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Comments (1)
  • Maobama
    , contributor
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    Seems odd since STO has had the Ocean Vanguard employed since July of last year that suddenly there are problems with "the technical aspects of the rig." Also shouldn't STO have been aware of the operating spec's prior to mobilization?

     

    I would expect DO to recover a large portion of the contract balance from STO.
    4 Jun 2014, 03:29 PM Reply Like
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