Total terminates Ensco drillship contract

Offshore Driller Ensco has received a notice of early termination from Total for drillship Ensco DS-7, effective from around early in the fourth quarter of 2016 based on the Total’s current well program.

Total hired the drillship in the fourth quarter of 2013 at an initial day rate of around $610,000. Total is obligated to pay Ensco daily termination fees through to November 2017 as well as a demobilization fee.

For the first 90 days following the early fourth quarter 2016 effective date, the daily termination fee is equal to the operating day rate of approximately $585,000.

For the remaining term through November 2017, the daily termination fee is equal to 75% of the operating day rate. Daily termination fees payable by Total will be defrayed during any period that Ensco contracts the rig to a third party through November 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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