Premier Oil serves Ocean Rig with breach note

Ocean Rig has received a notice of breach of material obligations from Premier Oil, for which the Economou-led company’s semi-submersible drilling rig Eirik Raude has just completed an employment contract.

“Ocean Rig is evaluating the contents of this notice and its options under the contract,” the NASDAQ-listed company said in a release today. The exact issue was not disclosed.

Eirik Raude (pictured) has just completed a six-well drilling contract with Premier Oil and Noble Energy in the offshore Falkland Islands. The rig was due to complete the work in the fourth quarter 2015, according to earlier Ocean Rig reports, but the latest fleet update said the contract would end in January 2016.

During the Premier Oil contract, the rig spent nine days off hire in May last year, reportedly due to an equipment malfunction that required its blowout preventer (BOP) to be repaired.

No further employment contracts have been announced for the rig. In October, Ocean Rig said Eirik Raude would be cold-stacked if no work can be found “and the company will consider all its options including disposing or scrapping the unit”.

Earlier today, Premier Oil announced it has agreed to buy E.On’s North Sea assets for the amended figure of $135m, including completion adjustments.

Holly Birkett

Holly is Splash's Online Editor and correspondent for the UK and Mediterranean. She has been a maritime journalist since 2010, and has written for and edited several trade publications. She is currently studying for membership of the Institute of Chartered Shipbrokers. In 2013, Holly won the Seahorse Club's Social Media Journalist of the Year award. She is currently based in London.
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