Rowan Companies has received two early termination notices this month, in addition to booking more work and selling one jackup.
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Image of a Rowan jackup, from Rowan. |
Cobalt International Energy will pay Rowan about US$96 million for the right to terminate its contract for the Rowan Reliance ultra deepwater drillship in the Gulf of Mexico as early as 31 March 2017. This deferred revenue is expected to be amortized from 1 April 2017 to 1 February 2018 at the latest. If operations continue after 31 March, the dayrate will be reduced to approximately $262,000. The dayrate for the vessel was at $602,000.
ConocoPhillips also gave notice of its intent to terminate the contract for convenience for the Rowan Gorilla VI jackup offshore Norway at the end of 2016. Upon termination, ConocoPhillips will pay $250,000 per day for the remaining term of the contract through March 2018. Should the company source alternative work for the rig, the $250,000 dayrate will be offset by any contract revenues in excess of $100,000 per day. The dayrate was originally set to $362,000
Offshore the UK, Rowan and Total entered into a short-term extension for the Rowan Gorilla V jackup. The eight-month extension comes with a six-month priced option at an undisclosed dayrate below $100,000. The contract is expected to begin in July 2017. The jackup will undergo repairs and inspections in Q3 2017 and will be off hire.
Cobalt has also entered into a deal with Lundin Petroleum for six 90-day priced options ranging in dayrates from $180,000-$230,000 for the Rowan Viking jackup in the North Sea.
The Houston-based company also said in its fleet status report that it is in a binding agreement to sell the Rowan Gorilla II jackup as a non-drilling unit.
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