Norway’s Statoil has canceled its contract for a North Atlantic Drilling jackup about two months early, citing a lack of work for the rig.
North Atlantic Drilling said on Tuesday that it received a notice of cancellation from Statoil Petroleum AS related to the contract for the West Epsilon jackup.
The West Epsilon was originally contracted for drilling services in Norway until the end of December 2016.
The early cancellation will be effective once the rig concludes its current activities in mid-October.
In accordance with the contract, North Atlantic Drilling will receive a lump sum payment of about $11 million.
“The West Epsilon is currently being marketed for new employment,” North Atlantic Drilling added.
The rig has been on contract to Statoil since December 2010 and has performed operations for the Sleipner, Gudrun and Huldra licences.
West Epsilon is currently performing permanent well plugging operations at the Huldra field.
Statoil said on Tuesday that the work program at the Huldra is being completed ahead of schedule.
The rig will be sent ashore for equipment demobilization after completing operations.
Operations are expected to be complete by the first half of October, Statoil said.
The contract will be cancelled after the demobilization work has been completed.
“The licences do not have any work program for the remaining contract period, nor does Statoil have any other activities where the available capacity can be used,” Statoil said.