Repsol terminates Rowan drillship contract

Spanish oil company Repsol has terminated a drilling rig contract with the U.S. offshore drilling company Rowan Companies.

Rowan said on Tuesday that Repsol had informed it on November 8, it would terminate the drilling contract for the Rowan Renaissance drillship “effective immediately.”

“The Company expects to continue to be paid by Repsol on a monthly basis through the original termination date of April 22, 2017, at a rate slightly below the current standby rate,” Rowan said in a statement.

The U.S. offshore driller said it would reduce manning and warm stack the drillship in the near term. According to MarineTraffic, the rig is currently in the U.S. Gulf of Mexico, on its way to Grand Isle, Louisiana.

According to Rowan’s fleet status report from October, the drillship went on standby rate in mid-March 2016 (98% of Operating Rate).

Offshore Energy Today Staff