Africa-focused independent CAMAC Energy terminated its contract Monday with Northern Offshore International Drilling for the drillship Energy Searcher amid a contract dispute.
Houston-based CAMAC said it canceled the contract with immediate effect as of January 7 and is considering legal options for alleged breach of contract.
“These breaches have caused significant damages and loss, including delay damages and wasted spread costs to the company,” CAMAC said.
Further details about the alleged breaches have not been disclosed.
CAMAC is reportedly preparing a $50 million claim against Northern Offshore for the alleged breaches, Reuters said.
The Energy Search rig was set to work at CAMAC’s Oyo field in offshore Nigeria, located 46 miles off the cast of Nigeria.
CAMAC Energy holds a 100 percent interest in the Oyo field.
Drilling and completion operations at the field are now being conducted by the Transocean owned Sedco Express semi-submersible drilling rig.
Production at the field is expected to start by the end of the first quarter.