Ocean Rig secures charter extension worth $1.1 billion
PETROBRAS has awarded Greek drilling contractor Ocean Rig a charter extension worth more than $1.1 billion for two rigs operating in the Brazilian pre-salt fairway, the company said in its press release.
The deal covers the drillships Ocean Rig Mykonos and Ocean Rig Corcovado for an additional three-year period each, but does not include reimbursements by Petrobras for contract-related equipment upgrades.
The new contracts will commence in direct continuation from the end of the current agreements with Petrobras.
The Mykonos was renewed until March 2018 and the Corcovado was extended until May 2018 for dayrates of approximately $500,000 each.
“While the dayrate is above the $450,000 we had been anticipating and is likely above current market prices for high-specification ultra-deepwater rigs, negotiations had been going on and off for over a year,” said Cowen Securities in a research note.Sources told Upstream that the additional cost of full compliance with technical specifications and installing accounted for at least $40,000 of the announced dayrate.
The two dual-activity rigs are part of a broader scheme at Petrobras that includes the contract renewal terms for seven additional rigs in Brazil with charters due to expire next year.
Upstream understands that the Petrobras board has also approved renewed terms for the Diamond Offshore semi-submersible rigs Ocean Courage and Ocean Valor.
Approvals are also imminent for the Pacific Drilling drillship Pacific Mistral, the Seadrill semisubs West Eminence and West Taurus, the Odfjell Drilling drillship Deepsea Metro II and the Queiroz Galvao Oil & Gas semisub Gold Star.