COSL Considers Legal Action against Statoil Over Rig Termination
China Oilfield Services Limited (COSL), a parent company of COSL Drilling Europe, is thinking about taking legal action against Statoil after the oil company terminated a rig contract it had with COSL Drilling.
To remind, the Norwegian oil company Statoil cancelled a contract with COSL Drilling for the COSLInnovator semi-submersible rig that was operating on the Troll field in the North Sea. Statoil claimed that the conditions for terminating the contract had been met.
In addition, Statoil decided to stop drilling operations with the sister rig COSLPromoter when it is safe to discontinue well operations. According to Statoil, this decision was made in order to enable COSL to implement the necessary actions in order to fulfil the requirements of the contract.
However, neither of the two companies provided further details about what sort of requirements the rig needs to fulfil.
According to COSL’s statement issued on Sunday, the company strongly disagrees with Statoil’s decision regarding the drilling rigs’ contracts, and it will seek to resolve the differences with Statoil.
However, COSL said that, if necessary, the company would take legal action against Statoil in order to protect the company’s interests.
Under the contract, COSLInnovator had four more years and eight months left to work for Statoil, and its sister rig, COSLPromoter, has five years and one month.
