Ocean Rig UDW, has announced that one of its drilling contracts has been terminated.

As a matter of fact, Total E&P Congo had on February 11, 2016 announced the termination the long standing contract of the 7th generation ultra-deepwater drillship Ocean Rig Apollo for convenience.

Ocean Rig said it is eligible to a termination fee ranging from 50% to 95% of the daily operating rate which is to be paid over the balance of the contract.

The vessel is to be discharge from Congo sooner or later and is open for other services.

Ocean Rig Apollo was built in 2015 in South Korea by Samsung Heavy Industries. The three-year contract between Ocean Rig and Total for the vessel was extended in 2013.

“It is really regrettable that f our clients have decided to terminate drilling contracts for convenience. This is a reminder of the extremely challenging times facing the offshore drilling industry and oil companies taking unprecedented action to reduce their capital expenditures. The prospects for the industry remain bleak and we currently see limited prospects of a recovery before 2018 at the earliest,” George Economou, Chairman and CEO of Ocean Rig told Offshore Energy Today.

Anita Fatunji