Maersk Drilling said it suffered the cancellation of another drilling contract as it continues to face a tough offshore market.

The rig-owning unit of Danish shipping giant AP Moller Maersk said a Chevron affiliate ended a deal that was to see the semi-submersible Maersk Deliverer (built 2010) remain at work off Angola until December 2016.

Maersk said it is entitled to see receive compensation for the remainder of the contract with Cabinda Gulf Oil Company Limited, which first hired the rig in May 2012.

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