Seadrill rig contract canceled by Pemex

• Seadrill (NYSE:SDRL) -2.2% premarket after saying it is reviewing its legal options after Mexico's Pemex cancels a two-year extension of the contract for the West Pegasus deepwater semi-submersible rig.
• SDRL says it had reduced dayrate payments for five of its jack-up rigs on the condition that Pemex would extend its deal for the West Pegasus by two years.
• SDRL says it is entitled to recover the dayrate discounts and the costs of demobilizing the rig.