Anadarko cites force majeure in filing to cancel Diamond rig contract

9/15/2010

Anadarko cites force majeure in filing to cancel Diamond rig contract

As a result of the deepwater moratorium instated after the Deepwater Horizon accident in April, Anadarko Petroleum  is moving forward with canceling a contract to use a rig owned by Diamond Offshore Drilling Inc.

Anadarko cited the U.S. suspension of drilling in the Gulf of Mexico, Diamond Offshore said on September 15. Diamond also stated in a filing with the U.S. Securities and Exchange Commission that Anadarko has cited a 'force majeure' clause in its contract for the semi-submersible rig Ocean Monarch. That clause would allow it to cancel the contract because of natural and unavoidable disasters.

Per the terms of the contract, Anadarko was to pay about $440,000 per day to hire the Monarch from early August through the mid-March 2013. Anadarko, a minority owner of BP's Macondo well, has also filed a lawsuit against Diamond Offshore seeking a declaratory judgment that the termination of the contract is allowed under its contract, Diamond said.

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