Seadrill Ltd. has been notified by Husky Oil Operations Ltd. of the cancellation of the drilling contract for the West Mira, Seadrill said in a news release.
In fourth-quarter 2012, Seadrill was awarded a five-year contract for the West Mira with Husky for operations in Canada and Greenland. The total estimated base revenue potential was about $1 billion, the release said. As stated in the company’s second quarter earnings report, due to the late delivery of the unit, the company had tentatively agreed with Husky to reduce the day rate on the West Mira. The construction contract was subsequently canceled by Seadrill due to the shipyard’s inability to deliver the unit within the timeframe required under the contract, Seadrill said in the release.
Seadrill said it remains in discussions with Husky to find an alternative solution to meet its drilling requirements.
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