The Archer Emerald rig. Image courtesy of Archer.

Services player Archer received an early termination request Tuesday for the Archer Emerald drilling rig from a joint venture between Talisman Energy and Sinopec.

The original two year contract was valued at $96 million and was scheduled to commence during the first quarter of 2016.

The early termination fee due to Archer under the contract will range between $34 million and $43 million.

The rig was set to be apart of the MonArb Area Redevelopment project in the UK North Sea that aims to prolong the life of ageing assets and extract further reserves from the Montrose reservoir.

Calgary-based Talisman holds a 51 percent stake in MonArb and China-based Sinopec holds a 49 percent stake.

The joint venture has not commented on the termination or what affect the move will have on the MonArb project.

The contract was set to be the first operation using the Archer Emerald modular rig in the UK.

The termination is expected to be effective as of January 29, Bermuda-based Archer said.


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