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The Stena Carron. Image courtesy of Offshore Energy Today.

Statoil cancelled its contract for the Stena Carron rig Friday after a series of “disappointing” results in offshore Angola, taking a $350 million loss on the deal.

The company said it will take a “time out” from exploring the area after finishing up its commitments at its operated blocks 38 and 39.

Both the Dilolo and Jacaré wells drilled at the blocks came up dry.

The $700 million contract was initially set to expire in 2016 but will be terminated as of November 21.

The rig is owned by UK-based Stena Drilling.

Statoil said that it “still sees remaining prospectivity” in its operated acreage it needs “more time” to evaluate well results mature new prospects before deciding on future activities.

The Jacaré well in block 38 has now been plugged and abandoned.

The Norway based upstream will expense the $350 million cost of terminating the contract in the fourth quarter and also expects to take an impairment charge for the block 38 signature bonus.

The company’s 2014 exploration expenditures guidance will remain at $3.5 billion, a figure that includes the cost of drilling the Jacaré well.

Costs associated with the Jacaré well will also be expensed in the fourth quarter.

UK-based Genel Energy, Statoil’s partner for the Dilolo and Jacaré wells, said it is not planning any additional activity in blocks 38 or 39.