Cobalt International Energy Inc. agreed to terminate early the long-term drilling contract with Rowan (UK) Reliance Ltd. governing the Rowan Reliance drillship.
Amending the drilling contract with Rowan provided for the early termination of the rig, but the drilling contract was originally scheduled to terminate on Feb. 1, 2018. The new termination date is March 31, 2017.
Per the amendment, Cobalt will save 45% of the contract value, or about $80 million, and will pay Rowan the remainder, about $98 million.
In the Sept. 15 press release, Cobalt also said it committed to use Rowan as its exclusive drilling services provider for five years.
Cobalt International Energy Inc. is based in Houston.
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