ConocoPhillips and Marathon Oil Corp. have signed an early termination agreement for the deepwater drillship Maersk Valiant, Maersk Drilling says.
The termination, which comes following Conoco's decision to halt Gulf of Mexico deepwater exploration spending, will take effect in mid-September 2016. Maersk Valiant has been on a joint contract with Marathon Oil Corp. and ConocoPhillips since June 2014, with the original contract scheduled to end in September 2017.
Maersk Valiant was built in 2014 and is equipped with dual blowout preventers as well as an integrated MPD system. The rig is designed for year-round operation in areas such as the Gulf of Mexico, West and East Africa and Asia Pacific at water depths of up to 3600m (12,000ft).
ConocoPhillips recently drilled the US$70 million Melmar dry hole in the Gulf of Mexico using the Maersk Valiant. In April, Conoco said: "We don't deem it prudent to continue allocating capital to new deepwater prospects."
Maersk Drilling's compensation under the early termination agreement will leave the firm financially neutral to the original contract, the company says.
“With the termination of Maersk Valiant, we are reminded of the extremely challenging conditions in the offshore oil and gas market," says Head of Global Sales, Michael Reimer Mortensen. "It is with regret that we will see a high performing rig such as the Maersk Valiant without work, but we will continue to explore opportunities with our customers and seek ways to create innovative solutions to enable project viability.”
Image: Maersk Valiant/ Maersk Drilling Facebook
Read more
Subscribe
