Hercules Offshore said it has canceled two West Africa rig contracts after the company could not secure visas for crew members.
Hercules revealed in a securities filing that officials with state-run Sonangol declined to accept any of the three local representatives “that meet the company’s international legal compliance standards”.
The company has “experienced delays in obtaining Angolan visas for required crew members and delays in importing required parts and equipment into Angola to support operations”.
Regulations in Angola require contractors to work with a local representative.
The contract for the Hercules 267 will be terminated, according to the company.
Hercules will also voluntarily give up a three-year contract in Angola for the Hercules Triumph.
The lost contracts will reduce Hercules’ future backlog by an estimated $91.8 million.