Ocean Rig, Eni reach agreement on drillship contract

Ocean Rig UDW Inc. a provider of offshore deepwater drilling rigs, has secured a contract extension for one of its drillships.

In detail, the company said that Italy’s Eni has extended the contract for the drillship Ocean Rig Poseidon in Angola for a further one year until the second quarter of 2017, however on a reduced dayrate.

Ocean Rig has explained that it has accepted the dayrate reduction for the Poseidon, in exchange for ENI agreeing to enter into two contracts for the employment of one or more of Ocean Rig’s available drillships in West Africa starting in the first quarter of 2015 for an aggregate period of approximately 8 months.

In September last year, using the Ocean Rig Poseidon, Eni made an oil discovery in Block 15/06, in the Ochigufu exploration prospect, in deep water offshore Angola. The discovery is estimated to contain 300 million barrels of oil in place.

George Economou, Ocean Rig’s Chairman and CEO commented: “We are pleased to extend our relationship with ENI. This transaction is the natural consequence of the good cooperation, performance and flexibility shown by both parties to enter into a mutually beneficial arrangement. Assuming the consummation of this agreement, Ocean Rig’s revenue backlog now stands at approximately $5.4 billion which provides us with the necessary flexibility to navigate the more challenging markets in 2015.”

The drilling contractor said in a statement that the agreement with Eni will increase the total contract backlog of Ocean Rig by approximately $187.0 million. The deal is subject the approval by national authorities.

Offshore Energy Today Staff