Hercules Offshore has sold a jackup drilling unit in a US$3.16 million deal with an undisclosed buyer.
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The Hercules 267, image from Hercules Offshore. |
The deal, through the company’s subsidiary Hercules International Drilling, is for the Hercules 267. The sale is expected to close imminently, subject to the satisfaction of customary closing conditions, Hercules said.
According to Hercules' fleet status reports, the Hercules 267 has been warm stacked in Gabon since October 2015; and ready stacked between July and September 2015. Hercules said that the rig had been off dayrate since late April 2014.
In June 2014, according to an 8-K filing, the contract for the Hercules 267 was terminated due to Sonangol officials failing to accept a local representative which met the company’s international legal compliance standards, causing Hercules to experience delays obtaining Angolan visas for required crew members, in addition to delays in importing required parts and equipment into Angola to support operations under the drilling contract for the Hercules 267.
In May 2014, Hercules had moved the rig to Gabon from Angola, where the jackup had been on a zero dayrate since late April 2014, which ultimately reduced the company’s backlog by an estimated $91.8 million. The rig had been under contract with CABGOC at a dayrate of $108,000-$110,000 for an estimated 940 days, with the contract expected to end later this year in November.
The issues with Sonangol officials also led Hercules to voluntarily relinquish a three-year contract award it previously received in Angola for the Hercules Triumph.
According to the company’s latest fleet status report in late March, in the Gulf of Mexico, the company currently has two rigs under contract, two rigs ready stacked, five rigs warm stacked, and nine rigs cold stacked. In the Middle East, Saudi Aramco has three rigs under contract at at reduced rates.
In Europe, Hercules has the Hercules Highlander en route to Maersk Oil UK, and one rig ready stacked. In Asia, one rig is under contract with Hess, one is warm stacked in Malaysia, and one rig is under contruction in Singapore. In Africa, Hercules has two rigs in Angola, one warm stacked and one ready stacked, and one rig under contract with Eni in Congo.
Hercules Offshore has been through a rollercoaster ride of ups and downs since the oil price collapse in 2014. The company has filed for bankruptcy, emerged from bankruptcy, only to file again.
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