Stone Energy terminates Ensco semisubmersible

Stone Energy terminates Ensco semisubmersible

Stone Energy Corporation and Ensco have reached an agreement to terminate a long term contract for deepwater semisubmersible rig Ensco 8503.

As part of the agreement Ensco receive compensation totalling $20m, $5m of which was previously provided to Ensco pursuant to the drilling services contract. In addition, Stone has agreed to make a $5m deposit that can be applied as a credit toward certain future drilling services initiated in the Gulf of Mexico on or before March 31, 2017. If these funds are not used by such date, subject to certain exceptions, Stone Energy forfeits such $5m deposit.

Ensco also retains the exclusive right to perform offshore drilling services for Stone within a predefined range of operating day rates in the Gulf of Mexico through December 31, 2019.

The Ensco 8503 rig contract was signed at a day rate of $341,000 and was scheduled to expire in August 2017.

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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