Monday, January 12, 2009

Transocean Cancels Rig Deal

Upstream:
"Offshore driller Transocean has canceled a record $550,000-a-day rig lease with Burgundy Global Exploration after the energy company failed to deposit cash in escrow..."


Deep water exploration is due to it's high costs reserved for E&P majors. To me it seems that Burgundy was trying chew more than it could swallow and it's timing was way off.

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