LONDON, March 31 (Reuters) - BP terminated contractsfor two deepwater oil drilling rigs in the Gulf of Mexico as theBritish oil company slashes its exploration budget due to fallenoil prices.
Offshore drilling company Ensco said it had receivednotice to terminate BP-operated rig DS-4 in the Gulf of Mexico.Rival Seadrill Partners announced this week that BP hadalso cancelled a contract for the West Sirius field in the sameregion.
BP confirmed the termination of both contracts, saying therigs were "surplus to requirements following BP's adjustment ofcapital expenditures in response to the new, lower oil priceenvironment.
"BP remains the largest investor and leaseholder in the U.S.offshore and we will continue to realise further measures tounderpin our long term future there, as appropriate," aspokesman said.
In February, BP said it would cut capex to $20 billion in2015 from $22.9 billion in 2014.
(Reporting by Ron Bousso; editing by Jason Neely)
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