Premier, Noble Terminate Contract for Eirik Raude Rig

UK independent explorer Premier Oil announced Friday that and partner Noble Energy have issued a notice that terminates their contract with Ocean Rig for the Eirik Raude (UDW semisub) drilling unit with immediate effect. Premier said the decision was made following "a number of material operational issues with the Eirik Raude rig during the term of the contract to date".

Premier said that, as a result of the cancellation of the rig contract, the partners will no longer be drilling the Chatham exploration well during the current campaign. However, it added that it and Noble are in discussions with the Falkland Islands government regarding the possibility of drilling the prospect in the future.

Sources familiar with the matter told Rigzone that general mechanical issues with the rig were a factor as was a problem with the blowout preventer (BOP) when drilling the Isobel Deep well, located in the North Falkland basin in April last year. The BOP issue caused Premier to suspend operations at Isobel Deep for two weeks.