Shell terminates contract for second Arctic drilling unit

Royal Dutch Shell PLC has elected to cancel its contract with Transocean Ltd. for the harsh environment semisubmersible Polar Pioneer before its July 2017 expiration date.

Shell last week terminated its contract with Noble Corp. for the Noble Discoverer drillship (OGJ Online, Dec. 18, 2015). Both units were part of Shell’s Chukchi Sea summer exploration drilling program (OGJ Online, Sept. 28, 2015).

Transocean says it will be compensated for the early termination of the Polar Pioneer contract through a lump-sum payment that includes adjustments for reduced operating costs and demobilization to Norway.