Italian oil company Eni has ended its contract with offshore drilling contractor Ocean Rig for the ultra deepwater drillship Ocean Rig Olympia due to a steep fall in oil prices.

Ocean Rig said the decision of contract termination was made due to volatility in the oil market, which has forced Eni to review its drilling activities and exercised its rights for early termination of the contract.

In May 2015, Eni awarded Ocean Rig Olympia contract to drill offshore Angola.

"Oil prices have fallen below $30 a barrel in the past 18 months."

The activity began in the third quarter of 2015 and lasted for around eight months, pushing the contract expiration to February 2016.

Samsung Heavy Industries Shipyard in South Korea delivered the sixth-generation ultra deepwater drillship Ocean Rig Olympia in 2011.

It is one among the 13 offshore ultra deepwater drillships in the Ocean Rigs fleet, which comprises of 11 drillships and two semisubmersible drilling rigs.

Among these, one is scheduled to be delivered to the company in 2017, another in 2018, with the third following in 2019.

Oil prices have fallen below $30 a barrel in the past 18 months, a drop of 75%.