Xcite Energy said yesterday it had cancelled an option to continue using Rowan Norway’s jackup rig on its North Sea Bentley field.
The Aberdeen-based firm more than doubled the field’s reserves estimate last month, after an extensive well test last year and a seismic survey.
Xcite said the terms of the rig contract, which began in February 2011, no longer made commercial sense given an upgraded development plan developed this year.
With the first phase of drilling now planned to last five years and a more flexible rig market than in 2011, Xcite said it had started dialogue with other rig providers to develop a more cost-effective drilling solution for the project.
Chief executive Rupert Cole said: “We are grateful for the provision of the Rowan Norway and the associated drilling support during the successful extended well test last year.”
The east-of-Shetland field could produce up to 250million barrels of oil.