I've just been reminded how long I have been waiting for FID, reading RigZone FID was due December 2008 (production 2010) and at the time of announcing contract with Transocean NXS was trading in excess of $1.20 (June 2008).
I knew this skeleton was in the closet somewhere but due to elapse of time and lack of mention in any NXS comms, I presumed it was settled amicably. Although at the time I was under the impression that NXS cancelled the rig but now appears that Transocean cancelled the contract. And if that were the case, why didnt NXS strike a claim against Transocean for damages??? Seems NXS had $308m of other items in the supply pipeline also (any other exposures we dont know about???)
I think the 'Safety Concerns' is a lame argument for a start as the liabilty would have been on Transocean anyway.
If NXS is at fault, it will either be an apology with a cheque (any idea how big??) or awarding a new contract so we can all feel good and get back to our core business. Anyone know where Transocean operated for the 260 days it was meant to be on NXS contract?
At least NXS legal fees will be low with RC defending the case.
When will the bad news end.....sorry for all the questions.
NXS Price at posting:
32.5¢ Sentiment: Hold Disclosure: Held
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