Petrobras cancels Diamond rig contracts

Offshore staff

HOUSTON – In Diamond Offshore Drilling’s 3Q earnings release, the company said it had reached an agreement with Petrobras to end two rig contracts ahead of their original end dates.

Contracts for the Ocean Alliance semisubmersible and the Ocean Clipper drilling rig will now be ended as of Oct. 30 in return for an additional 875 days of contract term on the semisubmersible Ocean Courage. The additional term will be at a rate of $380,000/d, representing revenue backlog of $333 million, and will extend the contract into mid-2020. 

After export from Brazil, the Ocean Alliance will be cold-stacked and the Ocean Clipper will be retired and scrapped. The terminated portions of the contracts represent a loss to revenue backlog of approximately $91 million.

Diamond Offshore also confirmed the midwater Ocean Guardian semisubmersible was awarded a contract for a one-year term in the UK North Sea beginning in March 2016 at a day rate of $220,000.

11/03/2015

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