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Image courtesy of Transocean.

Transocean is preparing to cut over 200 jobs in Norway as demand for rig services dries up.

According to Energy Voice, Switzerland-based Transocean expects to cut about 230 jobs in Norway in addition to previously announced plans to cut 575 jobs.

An agreement to reduce the company’s Norwegian headcount has reportedly been reached, but employees impacted by the cuts have not been notified yet.

Job cuts have reduced the headcount at Transocean’s Norway office down to about 700 workers from 1,500 in 2014, Splash 24/7 said.

The company is now expected to have only one rig under contract in Norway by the fall of this year, Splash 24/7 added.

Last week, Murphy Exploration & Production Company – USA, a subsidiary of Murphy Oil Corporation, terminated its contract for Transocean’s ultra-deepwater drillship Discoverer Deep Seas.

Transocean said it will be compensated for the early termination through a lump-sum payment that includes adjustments for operating costs.

The rig’s contract was scheduled to end in November 2016.

Transocean saw two rig contracts terminated in December after Shell ended its contract for the Polar Pioneer rig about seven months early and Norway’s Statoil canceled its contract for the Discoverer Americas drillship.

Transocean said Shell will compensate it for the early termination through a lump-sum payment that includes adjustments for reduced operating costs and demobilization to Norway.

Statoil said it was canceling its contract because it has been unable to secure additional activity for the rig for the remainder of the contract period.

Transocean reported $1.61 billion in third quarter revenue in November, beating analyst targets.

The company’s fleet utilization fell to 70 percent in the third quarter from 75 percent in the prior quarter and its contract backlog stood at $16.9 billion as of the October 26.

The company will report fourth quarter 2015 and full year 2015 results on February 24.