Rowan provides fleet contract status update

Rowan Companies plc

Rowan Companies plc (NYSE: RDC) has provided its monthly drilling rig status report. Notable events in the current report include that the Bob Keller has been awarded a 10-year extension with Saudi Aramco in the Middle East, beginning May 2014 at $177,500 per day, above its previous day rate at $127,500.

The EXL I has a one-year contract with Petronas in Indonesia, which began at the end of October at $160,000 per day, in line with the previous day rate. The Gorilla VII increased its fourth-quarter 2013 off-rate time by 19 days to 57 days for leg repairs and weather delays. The rig is expected to return to service at the beginning of December 2013. Operating costs will be expensed during this period. Incremental third-party repair cost will be expensed and is expected to total approximately $2.5 million in the fourth quarter of 2013, above prior guidance of $1.9 million. 

The Gorilla VI increased its first-quarter 2014 off-rate time by 46 days to 59 days for repairs, upgrades and inspections. The rig is expected to return to service at the beginning of March 2014. The Rowan Viking increased its first- and second-quarter 2014 off-rate time by 15 days to 120 days for inspections and equipment modifications that are expected to begin at the end of February 2014, instead of mid-February 2014.

The company continues to expect out-of-service time to be 9% and 10% of available rig days for the fourth quarter of 2013 and full-year 2013, respectively. For 2014, Rowan continues to expect jackup out-of-service time to be between 7% and 9% of available rig days. The company does not expect any out-of-service days in 2014 for the drillships, and is expecting operational downtime to be less than 5% after some break-in period, when operational downtime could be somewhat higher. 



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