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Image courtesy of Maersk Drilling/Flickr.

Maersk Drilling is planning to cut over 100 jobs after losing a rig contract last week.

Maersk said last Thursday that it signed an early termination agreement for the deepwater unit Maersk Valiant with ConocoPhillips and Marathon Oil.

The original contract was scheduled to end September 2017.

Maersk said that the compensation under the early termination agreement leaves the company “financially neutral to the original contract.”

“With the termination of Maersk Valiant, we are reminded of the extremely challenging conditions in the offshore oil and gas market. It is with regret that we will see a high performing rig such as the Maersk Valiant without work, but we will continue to explore opportunities with our customers and seek ways to create innovative solutions to enable project viability,” Maersk Head of Global Sales Michael Reimer Mortensen said.

A Maersk spokesperson told Reuters on Tuesday that the company will eliminate 122 jobs in the United States due to the early termination.

Those cuts are in addition to 140 job cuts in Norway that the firm announced in July.

The Norway job cuts were tied to a lack of work for two of the firm’s rigs, Reuters added.