Stone in early termination of Ensco’s rig contract

Oil and natural gas exploration and production company Stone Energy has terminated a long-term deepwater rig contract with offshore drilling contractor Ensco. 

Stone hired Ensco’s 2010-built drilling rig Ensco 8503 for the company’s multi-year deep water drilling program in the Gulf of Mexico in October 2014.

Stone and Ensco have now agreed to terminate Stone’s current contract with Ensco for total consideration of $20 million, approximately $5 million of which was a deposit previously provided to Ensco pursuant to the drilling services contract.

Further, Stone said it agreed to provide Ensco the opportunity to perform certain drilling services started before December 31, 2019, and Stone paid Ensco a $5 million deposit to be used as a credit against future drilling activities initiated before March 31, 2017, subject to extension in certain circumstances.

The Ensco 8503 deepwater rig’s contract was at a day rate of $341,000 and was scheduled to expire in August 2017.

Chairman, President and CEO David Welch, stated: “The termination of the Ensco contract eliminates a long term obligation, which provides Stone with additional financial flexibility.”

Offshore Energy Today Staff

Share this article

Follow Offshore Energy Today

Events>

<< Jul 2019 >>
MTWTFSS
1 2 3 4 5 6 7
8 9 10 11 12 13 14
15 16 17 18 19 20 21
22 23 24 25 26 27 28
29 30 31 1 2 3 4

Uganda International Oil and Gas Summit 2019

Uganda International Oil & Gas Summit will once again examine the industry’s developments…

read more >

8th OIL & GAS AFRICA 2019 CONFERENCE

OIL & GAS AFRICA is one of the most prime regional & international Oil and Gas conferences in East Africa…

read more >

Gas Indonesia Summit 2019

Gas Indonesia Summit & Exhibition is returning for the fourth edition in Jakarta…

read more >

Shanghai Int Petrochemical and Offshore Oil & Gas and Chemical Industry Technology and Equipment Exhibition 2019

cippe Shanghai has attracts both…

read more >

Jobs>

Looking to fill a job opening?

By advertising your job here, on the homepage of OffshoreEnergyToday.com, you'll reach countless professionals in the sector. For more information, click below...

apply

Looking to fill a job opening?

By advertising your job here, on the homepage of OffshoreEnergyToday.com, you'll reach countless professionals in the sector. For more information, click below...

apply

Looking to fill a job opening?

By advertising your job here, on the homepage of OffshoreEnergyToday.com, you'll reach countless professionals in the sector. For more information, click below...

apply