Gazprom says Libya row kills Transocean rig gig

14.04.2010 11:02

Switzerland-based Transocean said on April 13 that Russian monopoly Gazprom declared force majeure on a Transocean rig in Libya due to Libya's recently announced embargo against Swiss companies.

The deep-water rig, MG Hulme Jr, had been due to start an 11-month contract for Russia's Gazprom at a rate of $495,000 per day in July.

Transocean, which moved its domicile to Switzerland from the Cayman Islands for tax reasons in December 2008, said it received the force majeure notice from the Russian energy company on 6 April, according to a Reuters report.

"We have rejected the notice on the basis that the claim is premature and the embargo should not apply to our operations in Libya," the world's largest offshore rig contractor said in a fleet status report issued today.

"We are currently evaluating the situation and our rights under the contract."

Libya slapped a trade embargo on Switzerland last month in an escalation of a dispute between Libyan leader Muammar Gaddafi and the European country over the 2008 arrest of Gaddafi's son in Geneva on charges - later dropped - of mistreating two domestic employees.

Source : Upstreamonline