US supermajor Chevron has terminated its contract for Transocean drillship Discoverer Clear Leader in the deep-water US Gulf of Mexico after wrapping operations at its Gator Lake wildcat.

Under its contract with Transocean, which was originally due to expire in October 2018, Chevron had the right to terminate the charter early, Transocean said. The termination will be effective from November 2017.

Chevron will pay Transocean a lump sum payment of about $148 million in termination fees, which is the present value of the operating dayrate less the operating costs per day.