Camac halts drilling deal
Sub-Saharan Africa-focused oil and gas explorer Camac Energy terminated its Energy Searcher drillship contract with international drilling company Northern Offshore, for its Oyo oilfield operations.
Camac elected to terminate the contract on January 7, with immediate effect, as a result of what it called repudiatory breach of contract and other material breaches of the drilling contract by Northern.
“These breaches have caused significant damages and loss, including delay damages and wasted spread costs to the company,” the JSE-listed company said in a statement to shareholders on Monday, adding that it was considering all legal options to enforce its rights under the contract.
The company's Oyo oilfield drilling operations, offshore Niger Delta, about 120 km off the Nigerian coast, were now being conducted by the Transocean Sedco Express semisubmersible drilling rig, which arrived on location in December. Production was expected to be online by the end of the first quarter of this year.
Meanwhile, Northern Offshore on Monday issued a notice of contract termination to Oceanic Consultants Nigeria, an affiliate of Texas-based Camac, for the Energy Searcher drilling contract.
Camac guaranteed Oceanic's obligations under the drilling contract. Northern Offshore believed that Oceanic breached various terms of the drilling contract and was planning to file a claim for in excess of $50-million associated with the matter, pursuant to the arbitration provisions of the contract.
Northern Offshore aimed to have the rig demobilised out of Nigeria later this month.
Article Enquiry
Email Article
Save Article
Feedback
To advertise email advertising@creamermedia.co.za or click here
Research Reports
Projects
Latest Multimedia
Latest News
Showroom
At Airshrink - CiP, we surpass customer expectations with innovative MV and LV cable accessories, including heat shrink joints, terminations,...
VISIT SHOWROOM
As one of South Africa's leading manufacturers, Bell Equipment distributes and exports its wide range of heavy equipment globally to mining,...
VISIT SHOWROOM
Press Office
Announcements
What's On
Subscribe to improve your user experience...
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation
