Russian oil company Rosneft has decided not to go forward with a rig contract previously agreed upon with Northern Offshore.

Offshore driller Northern Offshore, Ltd. today announced that North Atlantic Drilling Company Ltd (NADL) has received a cancellation notice for use of the Northern Offshore’s jack-up Energy Endeavor from Rosneft as part of a multi-rig contract to provide drilling services in the Russian Artic starting in the 2015 summer drilling season.

Northern Offshore President and CEO Gary Casswell said, “While not unexpected, we are disappointed by this development but will nevertheless continue to pursue future opportunities in this region by leveraging our previous experience drilling in the Russian Artic.”

To remind, Northern Offshore had in November 2014 agreed with Rosneft to delay the rig contract execution for May 2015, due to the Western sanctions against Russia.

The delay had been agreed upon to allow for for possible lifting of the sanctions allowing the contract to materialize. The contract would have brought $150 million to Northern Offshore.

Source: www.offshoreenergytoday.com

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