Houston, Texas — June 1, 2010 — Cobalt International Energy, Inc. (“Cobalt”) (NYSE: CIE) today announced that it had invoked the force majeure provision under the drilling contract with Diamond Offshore Company for the Ocean Monarch drilling rig. This rig was moored and ready to begin drilling operations at the location of our North Platte #1 exploratory well on Garden Banks 959. The reason for invoking force majeure was the steps announced on May 27, 2010 by the United States Government which suspended all drilling operations in the deepwaters of the Gulf of Mexico. Cobalt had obtained all necessary permits and insurance as required by law and regulation to commence drilling operations. Cobalt believes that the direct financial impact of triggering force majeure on the Ocean Monarch will result in a net expenditure to the company of approximately $15 million...
Shouldn't come as a surprise to the market, but all driller stocks are taking a major beating. Again. An overreaction in the cases of PDE and SDRL I'd say.
4 comments:
I would say overrreaction in all cases. Fear and loathing in oily waters. Is it time to go to the bank or is it U.S Goverment taking gom production under its wings?
Right now whole offshore sector is taking hit for some time. Damn leak got bigger than expected and cause whole lot bigger impact to gom drillers. dbling-tpling
What im thinking about all this oil leak episode is that it is definately increased sexyness of deepwater drilling. It is serious business with hi-tec technology and high science.
Junk shots & top hats, muy scientifico!
Seriously though most of the new offshore discoveries are very much technology driven and it appears that the cause of this accident wasn't a failure of technology, but a human error in the application of the tech.
Haha. Underwater robots, james cameron, extreme actions, ROV footage, etc.
I have read many stories what happened down there, dont know what to believe anymore. Seems like cause of accident is chain of mistakes.
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