Ultra Drillship Terminated By ExxonMobil
Seadrill Partners has announced that it has received a notice of termination for the contract for the drillship West Capella, chartered to ExxonMobil for work at the Usan Field in Nigeria.
In accordance with cancellation for convenience provisions in the contract, Seadrill Partners will receive a payment of around $125m plus other direct costs incurred as a result of the early termination.
The ship was working in the Usan field in Nigeria and was earning $627,500 per day from Exxon. In accordance with the contract, Seadrill will receive $125 million in two equal installments, the first in Q2 2016 and the second in Q1 2017.
Shares of Seadrill are 1% higher at $3.64, near the low of its 52-week range of $1.57 to $14.08.
Exxon shares were also higher at $89.13, just below the high of its 52-week range of $66.55 to $90.00.
The West Capella is currently being marketed for new work and is expected to be in Tenerife during its idle period.
The West Capella is an ultra deepwater drillship, delivered in 2008 by Samsung Heavy Industries’ Geoje Shipyard in South Korea.
Capella has been designed with the capability to operated in a maximum water depth of 10,000 feet (3,040m) and drill to a maximum depth of 37,500 feet (11,430m).
