VAALCO Energy has announced that it has executed an agreement with Transocean regarding the remaining contract term associated with the Constellation II rig utilized in the company’s recent drilling program offshore Gabon.
Under the agreement, VAALCO Energy will provide $5.1m to Transocean for unused rig days under the contract. The payment plus the company’s share of demobilization charges, will be paid in seven equal monthly installments beginning in July.
“We are very pleased to have reached a fair and amicable settlement with Transocean following the release of the rig utilized in our offshore Gabon drilling program. We appreciate the relationship with Transocean and their support of our operations. While low oil prices were the primary factor in our releasing the rig, the benefit of our drilling program through that point was further evidenced in the second quarter when our production averaged approximately 4,700 BOE per day, at the top end of guidance for the quarter,” said Steve Guidry, chief executive officer of VAALCO.