The Rising Influence of Rising Affluence

[DewDiligence]

COP—From the same article:

If ENSCO manages to contract the rig to another operator before its two Conoco-funded years expire, then Conoco will catch a break on the termination payment.

Do you have an estimate of what fraction of ESV’s dayrate money on this rig would flow back to COP as an offset to its cancellation penalty? (I presume it’s not a full dollar-for-dollar reduction.)

Perhaps more important, does COP’s complete exit from deepwater projects make economic sense from a long-term perspective, IYO?