Transocean cancels rig deal

Offshore driller Transocean has canceled a record $550,000-a-day rig lease with Burgundy Global Exploration after the energy company failed to deposit cash in escrow.

Philippines-based Burgundy agreed last month to lease Transocean’s C Kirk Rhein Jr rig to search for oil in Filipino waters. The contract represented a 52% increase from the previous rate and the first time that type of rig commanded more than $500,000 a day. Switzerland-based Transocean disclosed the termination. The company said it’s pursuing “appropriate remedies,” without elaborating. South African energy producer Sasol’s current $362,000-a-day contract to use the Rhein off the coast of Mozambique expires this month. Transocean had a $41.1 billion backlog of orders as of 30 September. The record lease for any type of rig is the $652,000 daily rate agreed to by Italy’s Eni in July 2008 for Transocean’s Deep-water Pathfinder ship.

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