Crude Oil ( ) Brent Crude ( ) Natural Gas ( ) S&P 500 ( ) PHLX Oil ( )

Source: Economic Times

BP terminated contracts for two deepwater oil drilling rigs in the Gulf of Mexico as the British oil company slashes its exploration budget due to fallen oil prices.

Offshore drilling company Ensco said it had received notice to terminate BP-operated rig DS-4 in the Gulf of Mexico. Rival Seadrill Partners announced this week that BP had also cancelled a contract for the West Sirius field in the same region.

BP confirmed the termination of both contracts, saying the rigs were “surplus to requirements following BP’s adjustment of capital expenditures in response to the new, lower oil price environment.

“BP remains the largest investor and leaseholder in the U.S. offshore and we will continue to realise further measures to underpin our long term future there, as appropriate,” a spokesman said. In February, BP said it would cut capex to $20 billion in 2015 from $22.9 billion in 2014.