Dril-Quip, Repsol Terminate Vietnam Project Contract
New York-listed Dril-Quip September 16 announced that its subsidiary and Spain’s Repsol have terminated the contract for the supply of drilling top-tensioned riser (TTR) systems for the Ca Rong Do (CRD) oil and gas project offshore Vietnam.
“The contract was awarded in February last year and was last extended until December 31, 2019 but had been subject to continued delays of the CRD project. With this termination, the CRD contract value of approximately $82mn will be removed from the company’s backlog,” Dril-Quip said. The project is operated by Repsol with the participation of Mubadala, PVEP and PetroVietnam.
Last year in March, BBC reported that drilling at the project had been halted for the second time in a year owing to Chinese pressure on Vietnam. State-run PetroVietnam ordered Repsol to suspend the project. The site is in an area of the disputed South China Sea designated Block 07/03 by Vietnam and Repsol's local subsidiary had previously estimated that it contains 45mn barrels of oil and 172bn ft3 of gas, according to the BBC report.