Stone Energy cancels deepwater rig contract

Stone Energy Corp. has terminated a deepwater drilling rig contract with Ensco that was originally set to expire in August 2017.

Jun 30th, 2016
ENSCO 8503
ENSCO 8503

Offshore staff

LAFAYETTE, LouisianaStone Energy Corp. has terminated a deepwater drilling rig contract with Ensco that was originally set to expire in August 2017.  

The two companies agreed to end the long-term contract for a total consideration of $20 million, about $5 million of the total amount was a deposit previously provided to Ensco prior to the drilling services contract.

Stone originally contractedENSCO 8503 in October 2014 for a multi-year campaign in the Gulf of Mexico.

The company also agreed to provide Ensco the opportunity to perform certain drilling services beginning before Dec. 31, 2019, and Stone paid Ensco a $5 million deposit to be used as a credit against future drilling activities initiated before March 31, 2017, subject to extension in certain circumstances.

Stone’s Chairman, President, and CEO David Welch stated: “The termination of the Ensco contract eliminates a long-term obligation, which provides Stone with additional financial flexibility” and thanked thedrilling contractor for its “willingness to work with Stone during this difficult period of sustained low commodity prices.”

06/30/2016

Share your news withOffshoreat news@offshore-mag.com

More in Drilling & Completion