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Gazprom cuts short Scorpion gig

Drilling contractor Scorpion Offshore has demobilised the Offshore Vigilant unit from the Urumaco-1 well in the Gulf of Venezuela after Gazprom cut short the contract, while the Bermuda-based outfit is still waiting to receive payment from its Russian client.

The Offshore Vigilant had been carrying out operations on the well since November 2008.

Scorpion has deals with two Gazprom subsidiaries, each for one well plus options for two additional wells.

Gazprom advised Scorpion that it plans to plug and abandon the well, adding that it was not in a position to take up operations on a second well in direct continuation of the first well as agreed in the deals.

The rig is now being towed to Trinidad and Scorpion are talking with Gazprom about future plans and also discussing near term potential availability of the rig with prospective clients in the region.

Scorpion has outstanding receivables totaling about $29 million due from Gazprom. Gazprom has indicated that they anticipate settling the outstanding amounts on 26 October 2009, said Scorpion.

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