Rig services company Transocean said it reached a deal with Husky Oil Operations Ltd. for activity off the coast of Canada for about $200 million.

Under the terms of a two-year deal, Transocean leases its Henry Goodrich harsh-environment rig for a day-rate of $275,000.

"The estimated contract backlog excluding mobilization is $200 million," Transocean said in a statement. "The rig is expected to commence operations in the second quarter of 2016."

The lease comes at a time when energy companies are spending less on exploration and production because of lower crude oil prices. For the week ending Dec. 4, Canada counted 177 rigs in active service, down about 4 percent from the previous week.

Revenues of $1.6 billion for the third quarter for Transocean were down 14 percent from the second quarter. Husky, meanwhile, said it too was bruised by the lower oil price environment, cutting planned spending from $5 billion for 2014 to $3.1 billion. The company said it was transitioning its spending to focus a higher percentage on production.

Husky in September started production from the South White Rose site off the coast of Newfoundland and Labrador. Two wells should lead to a peak production rate of 15,000 barrels per day.

Newfoundland's provincial government said many reserve basins off the eastern coast of Canada are past their prime.