Transocean says RIL ending drillship contract

American offshore contract drilling service provider Transocean on Monday said the Mukesh Ambani-led Reliance Industries Limited (RIL) has terminated the contract for its 'Discoverer India' ultra-deepwater drillship, effective December 2016.

"Reliance Industries has elected to exercise its contractual option to terminate contract for ultra-deepwater drillship Discoverer India, effective December 2016, prior to its expiration in January 2021," Transocean said in a press statement.

"In accordance with contract, Transocean will be compensated by RIL and its partners for early termination through a lump-sum payment of approximately $160 million," it added.

RIL did not issue any comment on this till the time of going to press.

Transocean is a provider of offshore contract drilling services for oil and gas wells. It specialises in offshore drilling business, with a focus on deepwater drilling services. The company owns or has partial ownership interests in, and operates a fleet of 58 mobile offshore drilling units, consisting of 29 ultra-deepwater floaters, seven harsh-environment floaters, four deepwater floaters, eight midwater floaters and 10 high-specification jackups. In addition, the company has five ultra-deepwater drillships and five high-specification jackups under construction or under contract to be constructed.