Core Points - Vantage Drilling has canceled a contract for drilling with Lukoil, a Russian oil major, due to U.S. and British sanctions [1][2][3] - The cancellation of the 260-day contract for the drillship Platinum Explorer was announced on October 19, shortly after sanctions were imposed on Lukoil [3] - Lukoil's overseas operations are facing significant challenges, highlighted by its declaration of force majeure at its Iraqi oil field [2] Company Summary - Vantage Drilling's contract cancellation is a direct consequence of applicable sanctions making performance unlawful [3] - Lukoil holds an 85% interest in the Trident and Est Rapsodia blocks in Romania, which are significant for gas exploration [4] - The Trident gas discovery is estimated to contain at least 30 billion cubic meters of gas, attracting interest from other energy majors like Shell and OMV [5] Industry Summary - The situation reflects the broader impact of sanctions on Russian energy companies and their ability to operate internationally [2][3] - The cancellation indicates a shift in the energy landscape, as European companies seek to replace Russian gas supplies with domestic production [5] - The Black Sea remains a critical area for gas exploration, with major energy firms looking to tap into new resources [5]
Sanctions stymie Lukoil drilling plans in Romanian Black Sea