ExxonMobil terminated earlier contract for drillship West Capella

drillship West CapellaExxonMobil terminated earlier the contract with Seadrill Partners for drillship West Capella. The ship was employed to operate in Usan offshore field in Gulf of Guinea off Nigeria. According to the termination agreement, Seadrill Partners will receive a payment of 125 million USD in two equal installments plus other direct costs incurred after the early termination. ExxonMobil is obliged to pay the agreed amount in two transactions, as the first in the second quarter of 2016 and the second in the first quarter of 2017. Despite a recent bullish momentum in oil prices, the offshore drilling industry is still struggling.

Despite of early termination, the drillship West Capella was marketed for new work and is expected to be in Tenerife during its idle period, but the financial details of the new charter were not disclosed.

Seadrill Partners is a limited liability company. The company was formed primarily to own, operate and acquire offshore drilling units from Seadrill Ltd.

The drillship West Capella (IMO: 9372523) was built in 2008 by Samsung Shipbuilding and Heavy Industries in their shipyard in Geoje, South Korea. The vessel has overall length of 227.80 m, moulded beam of 42.00 m and maximum draft of 8.50 m. The deadweight of the ship is 61,311 DWT and the gross tonnage is 59,626 GRT.