Energy Endeavour. Photo (c) MarineTraffic/Scott Vardy
OSLO, March 25 (Reuters) – Russian oil firm Rosneft has cancelled a contract for a two-and-a-half year rig contract with Northern Offshore and Seadrill’s North Atlantic Drilling Ltd, the Norwegian offshore driller said.
Western sanctions against Russia, and Rosneft in particular, have led the Russian oil group to cancel a North Atlantic Drilling vessel earlier this month and raised concerns whether a larger agreement would go through..
The contract, worth about $150 million, was for Northern Offshore’s jack-up rig, Energy Endeavour, which is “part of a multi-rig contract to provide drilling services in the Russian Arctic commencing in the 2015 summer drilling season,” Northern Offshore said in a statement dated March 24.
The rig is part of a bigger deal between North Atlantic Drilling and Rosneft to supply 150 land rigs and for Rosneft to then take a 30 percent stake in the company.
“We agreed before Christmas to postpone the deal and meet again in May,” North Atlantic Drilling’s Chief Executive Alf Ragnar Loevdal said on Wednesday.
“As you tell, the geopolitical picture remains unresolved and we can’t start the work because of that,” he said, adding that the deal could be postponed until relations between the West and Russia improve.
Rig firms have also been hit by cuts in spending by oil firms due to the slump in crude oil prices and rig rates have halved from a peak two years ago.
“The rig market looks difficult this year and next year,” Loevdal said.
Seadrill, North Atlantic Drilling and Northern Offshore are controlled by Norwegian billionaire tycoon John Fredriksen. (Reporting by Ole Petter Skonnord and Stine Jacobsen; Editing by Anand Basu and Louise Heavens)
© 2015 Thomson Reuters. All rights reserved.
Join the gCaptain Club for curated content, insider opinions, and vibrant community discussions.
Join the 109,808 members that receive our newsletter.
Have a news tip? Let us know.
The Bureau of Ocean Energy Management (BOEM) has confirmed competitive interest in two offshore wind areas (WEAs) off the southeast Texas coast, following an unsolicited lease request from Hecate Energy...
W&T Offshore, an independent driller operating in the U.S. Gulf of Mexico, has asked a federal judge to block insurance companies' demands for $250 million in additional collateral for taking apart old oil infrastructure.
Europe is starting to find the limit of a decades-long boom in offshore wind. It can be seen most acutely in the places that have been quickest to build capacity. Countries like Denmark and Sweden are beginning to hit a wall as power prices and incentives drop too low to make building projects worth it. The latest example is a Danish government auction for offshore wind that failed to attract any bids.
Access exclusive insights, engage in vibrant discussions, and gain perspectives from our CEO.
Sign Up
Maritime and offshore news trusted by our 109,808 members delivered daily straight to your inbox.
Essential news coupled with the finest maritime content sourced from across the globe.
Sign Up
Join The Club
