ExxonMobil Terminates Seadrill Contract
By Aiswarya Lakshmi
Monday, May 16, 2016
Exxon Mobil terminates earlier the West Capella working in Nigeria in the Usan Field. John Fredriksen-backed drilling firm Seadrill Partners LLC has received a notice of termination from Exxon Mobil.
In accordance with the cancellation for convenience provisions in the West Capella contract, Seadrill Partners will receive a payment of approximately $125 million in two equal installments, the first in the second quarter of 2016 and the second in the first quarter of 2017, plus other direct costs incurred as a result of the early termination.
The contract was a contract extension for 3 years signed by Total SA that was supposed to end in April 2017.
The West Capella is currently being marketed for new work and is expected to be in Tenerife during its idle period.