The ExxonMobil-Rosneft joint venture Karmorneftegaz SARL notified Norway's Siem Offshore that it has terminated Siem's contract for the 2015 season. The contract involves the charter of two AHTS vessels Siem Topaz and Siem Amethyst, and one PSV Siem Pilot.
The cancellation comes months after western sanctions ended drilling operations at the Universitetskaya-1 well in the Kara Sea for joint venture partners ExxonMobil and Rosneft.
Siem Offshore said, according to the original contract, an early termination fee is payable. The charter contracts were originally announced in November 2013, and covered a "firm" five-month period during the summer season in 2014 and 2015.
Siem Offshore placed the cumulative contract value for the 2014 and 2015 seasonable period at approximately US$60 million, net of local taxes. The original contract also came with an option to extend for a similar firm period of seasonal work for the years 2016 and 2017.
Rosneft holds majority stake in Karmorneftegaz SARL (66.67%). ExxonMobil holds the remaining 33.33%.
Image: Siem Amethyst/Siem Offshore
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