1. Reliance Industries ends drill ship contract 5 years in advance; here’s why

Reliance Industries ends drill ship contract 5 years in advance; here’s why

Transocean Ltd on Monday announced that Reliance Industries (Reliance) has elected to exercise its contractual option to terminate the contract for the ultra-deepwater drillship Discoverer India, effective December 2016, prior to its expiration in January 2021.

By: | Published: October 4, 2016 6:30 AM
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In accordance with the contract, Transocean will be compensated by RIL and its partners (BP and Niko Resources) for the early termination through a lump-sum payment of approximately 0 million. (Reuters)

Transocean Ltd on Monday announced that Reliance Industries (Reliance) has elected to exercise its contractual option to terminate the contract for the ultra-deepwater drillship Discoverer India, effective December 2016, prior to its expiration in January 2021.

In accordance with the contract, Transocean will be compensated by RIL and its partners (BP and Niko Resources) for the early termination through a lump-sum payment of approximately $160 million.

Sources told FE that the drill ship has been deployed by RIL overseas and not working in any Indian oil and gas block.

Industry watchers tell FE that RIL has leases out the ship to Chevron, which has deployed it in Gulf of Mexico. The reason for ending the contract could be the fall in charges for drill ships amid low crude price scenario.

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