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Beach Energy terminates Diamond Offshore contract for late arrival

Australia’s Beach Energy, operator of the Victorian Otway Basin Joint Venture, has sent notice of termination to Diamond Offshore drilling for the contract for 2013-built semi-submersible rig Ocean Onyx.

The rig arrived in Victorian state waters in mid-April for the Victorian Otway Basin offshore drilling campaign, however the arrival date was later than had been agreed and specified in the rig contract. Beach Energy did not accept the rig, and exercised its right to terminate the agreement.

The company says it will now negotiate a new contract with Diamond Offshore.

“Beach has a good working relationship with Diamond and its other service providers. All parties are engaging in discussions with regard to the future operations of the Ocean Onyx rig and the Victorian Otway Basin offshore drilling campaign, with a view to agreeing a new contract in due course. This process will take into consideration executing the drilling campaign during the COVID-19 epidemic and associated restrictions,” Beach Energy said in a statement.

Beach Energy now says that offshore drilling is unlikely to commence until 2021.

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Grant Rowles

Grant spent nine years at Informa Group based in London, Sydney, Hong Kong and Singapore. He gained strong management experience in publishing, conferences and awards schemes in the shipping and legal areas, working on a number of titles including Lloyd's List. In 2009 Grant joined Seatrade responsible for the commercial development of Seatrade’s Asia products. In 2012, with Sam Chambers, he co-founded Asia Shipping Media.
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