Chevron in Australia has cancelled a Songa Offshore rig contract “due to late rig delivery” letting oil company Santos takeover in what looks like a $81-million contract for the rig contractor.
The cancelled contract appears to be the first confirmation of a situation predicted by U.S. rig analysts who saw the flurry of newbuild rig orders causing delivery problems and unsettled contracts. ¬OilGas24.com affiliate, Scandinavian Oil-Gas Magazine has reported extensively on the rig build-up and delivery worries.
Santos and Chevron had together secured the Songa Mercur for drilling offshore Western Australia, but Chevron was slated to hire first. The rig will work for 270 days with an option for a further 90 days at the same rate and thereafter two, six-month options at market rate.
The contract with Santos starts when the rig is ready for departure from Singapore, which is now expected to be late June, a statement said.
ws@oilgas24.com
Add a Comment to this Article
Please be civil. Job and promotion will not be added into the comment page.