The compensation according to Transocean includes adjustments for reduced operating costs and demobilisation to Norway.
The company stated this in a statement it issued announcing that Shell has elected to terminate the contract for the harsh environment semisubmersible Polar Pioneer ahead of its expiration in July 2017.
Shell awarded a three year contract for Transocean Polar Pioneer in October 2013 at a dayrate of $620,000, with the semisub commencing work for the European super major in August 2014.
However, Transocean Ltd. reported Monday that Royal Dutch Shell plc has elected to terminate the contract prior to its expiration in July 2017.
What Transocean Does:
The company specialises in technically demanding sectors of the global offshore drilling business with a particular focus on deepwater and harsh environment drilling services, and believes that it operates one of the most versatile offshore drilling fleets in the world.
The company also has partial ownership interests in, and operates a fleet of 62 mobile offshore drilling units consisting of 27 ultra-deepwater floaters, six deepwater floaters, seven harsh-environment semisubmersibles, 12 midwater semisubmersibles, and 10 high-specification jackups.
It has seven ultra-deepwater drillships and five high-specification jackups under construction.