Norwegian oil explorer Statoil cancelled its rig contract with Seadrill after postponing work at its Aasta Hansteen field in the Norwegian Sea.
Seadrill’s drillship West Hercules was contracted for an assignment with Statoil’s Aasta oilfield commencing 1 July 2016, but the company took a decision to postpone drilling operations by one year to 2018.
Seadrill would receive a lump-sum payment of around $61m, plus dayrate and reimbursement of costs associated with demobilization of the rig.
On contract with Statoil since 31 January 2013, the rig had carried out an exploration campaign offshore Newfoundland in Canada for the past 18 months. The contract for West Hercules was originally due to expire on 31 January 2017.
Offshore-drilling vessel-provider Hercules Offshore reported a net loss of $26.9m, or $1.35 per diluted share for the 1Q’16 period, vs. net loss of $57.1m a year ago.
Revenues declined to $50.9m for the same period vs. $122.6m a year ago.
Company CEO John T. Rynd attributed the loss to continued weakness in the offshore drilling markets as oil prices declined, making its customers reduce their drilling activities.
The company had filed for bankruptcy in August 2015 and had emerged from it in November 2016.
Separately, the company had entered into a forbearance agreement with lenders last month and continues to explore options such as a potential recapitalization, business combination or other alternative strategic transactions, including the potential sale of its vessel Hercules Highlander, and a restructuring of its term loan.
Post-bankruptcy, the company had raised a $450m term loan to utilize $200m of it to pay its remaining installment on the Hercules Highlander vessel. The forbearance agreement has led to the company to explore selling its yet-to-acquired vessel.
Source: PR Newswire
P.S. Kindly refer to the one-page credit report on Hercules Offshore highlighting the company’s progress through bankruptcy.
Rig supplier Transocean stated that it would delay the delivery of two ultra-deepwater drillships to 2020 in an agreement with manufacturer Jurong Shipyard.
Transoceanic stated that the proprietary Jurong Espadon 3T designed rigs would be scheduled to be delivered between the first and third quarter of 2020.
Deferrals have been on the rise for the company as it anticipated fewer drilling contracts in 2016 due to oversupply of rigs in the market and falling crude oil prices.