Rowan to lay off 150 workers after drillship contract terminated

Offshore drilling contractor Rowan Companies is going to lay off up to 150 offshore workers due to the contract termination of its drillship Rowan Reliance.

According to a notice sent to Texas Workforce Commission, Rowan Reliance is currently contracted by Cobalt International Energy on North Platte in the Gulf of Mexico, and the employees onboard the drillship will be let go due to the termination of the contract.

The original contract was scheduled through to February 2018, but last year Rowan and Cobalt International Energy reached an agreement for the early termination of the contract.

The layoff process is expected to begin July 21.

“Rowan plans to retain certain employees to maintain the rig while it is idle. Although that it is possible certain employees will be reemployed should the rig secure a new drilling contract, the layoffs are expected to be permanent and there are no bumping rights,” Rowan said in the notice.

Jason Jiang

Jason is one of the most prolific writers on the diverse China shipping & logistics industry and his access to the major maritime players with business in China has proved an invaluable source of exclusives. Having been working at Asia Shipping Media since inception, Jason is the chief correspondent of Splash and associate editor of Maritime CEO magazine. Previously he had written for a host of titles including Supply Chain Asia, Cargo Facts and Air Cargo Week.
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