Rowan receives two contracts, two term notices

Offshore staff

HOUSTON – Rowan Companies has issued an update on its drilling rig fleet.

Cobalt will pay the contractor about $96 million in exchange for the right to terminate the contract for the ultra-deepwater drillship Rowan Reliance as early as March 31, 2017. This deferred revenue is expected to be amortized from April 1, 2017-Feb. 1, 2018 at the latest. If operations continue after March 31, 2017, the day rate will be reduced to about $262,000.

Perenco has contracted the jackup Rowan Gorilla VII for an estimated duration of 60-200 days. The work is expected to begin in mid-November. The rig has been stacked since mid-August. Apache paid a standby rate of $153,000 from mid-August until mid-October and a lump-sum termination fee of about $9 million.

ConocoPhillips has announced its plans to terminate the contract for the Rowan Gorilla VI jackup for convenience at the end of 2016. Upon termination, the operator will pay $250,000/d for the remaining term of the contract through March 2018. Should the company source alternative work for the rig, the $250,000 day rate will be offset by any contract revenues in excess of $100,000/d.

Total has extended the contract for the Rowan Gorilla V jackup until July 2017. The day rate is less than $100,000.

Rowan has secured a binding agreement to sell the 1984-built Rowan Gorilla II as a non-drilling unit. The sale is expected to close in 4Q 2016.

10/19/2016

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