Hamilton, Bermuda-based offshore drilling firm S
Post# of 658
Posted On: 10/05/2016 3:05:10 PM
Quote:
Hamilton, Bermuda-based offshore drilling firm SeaDrill Ltd. (NYSE:SDRL - Free Report) saw its shares decline after North Atlantic Drilling Ltd., in which it holds 70% stake, announced a rig contract cancellation by Norwegian oil giant Statoil ASA (NYSE:STO - Free Report).
This cancellation notice, which pertains to the contract for the West Epsilon jack-up, came two months before the expiration of the drilling contract between the parties. The West Epsilon rig was originally contracted to provide drilling services in Norway until Dec 2016. However, Statoil has now decided to conclude the rig’s current activities in mid-Oct.
As per the terms of the contract, North Atlantic Drilling is now entitled to receive a lump-sum payment of approximately $11 million because of the early termination. The West Epsilon, on the other hand, is currently being marketed for new contract. (Read more: SeaDrill Subsidiary Reports Rig Contract Cancellation .)
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Don't be afraid to be outnumbered. Pigeons flock together. Eagle fly alone
Don't be afraid to be outnumbered. Pigeons flock together. Eagle fly alone