Two of the major British players in Falkland Islands offshore oil development, Premier Oil and Rockhopper Exploration, cancelled a joint venture contract with Ocean Rig UDW.
In June 2014, the companies entered into a contract with Ocean Rig for the provision of the Eirik Raude for an exploration drilling campaign in the Falkland Islands.
However, following a number of material "operational issues" with the rig, Premier and Noble Energy issued a termination notice to Ocean Rig on Thursday, terminating the contract with immediate effect.
"As a result, Premier will no longer be drilling the Chatham exploration well during the current campaign. However, we are in discussions with the Falkland Islands Government regarding the possibility of drilling this prospect in the future," says a company statement.
Rockhopper Exploration, which has interests in the North Falkand Basin and Greater Mediterranean region said the drilling of Chatham well will now be deferred until the Seal Lion pre-development drilling campaign.