Rowan Nets New Drilling Rig Contracts

Published at 09:02AM - 19/10/16

Rowan Companies announced in its most recent fleet status report it has won new contracts for its jack-up drilling rigs, but is also facing the early termination of other drilling contracts.

As announced in late September, the company confirmed that the contract for the Rowan Reliance ultra-deep water drillship will be terminated in the end of May, 2017, with Cobalt.

Cobalt will pay approximately US$96 million (£78.17 million) to terminate the contract for the drillship built in 2014, which is currently working in the U.S. Gulf of Mexico.

Rowan Gets New Rig Deals, Faces Terminations

The two companies had entered a three-year contract in 2013 with a start date in 2015, which was originally scheduled to terminate in February 2018.

At the time, the CEO of Cobalt, Timothy J. Cutt explained the decision would help the company’s balance in the short-term, but it remained committed to using Rowan as its exclusive provider for five years.

Rowan Gets New Rig Deals, Faces Terminations
The Rowan Gorilla VII has been stacked

In addition, the report indicates that the Rowan Viking jack-up rig built in 2010 has been awarded dix 90-day priced options by Lundin Petroleum in Norway and will be available in November 2017.

Rowan Gets New Contract from Total

As well as this, the Rowan Gorilla V jack-up built in 1998 has been awarded a contract extension from Total in Norway of eight months plus a six-month priced option.

The rig will have expected off-rate time in the third quarter of 2017 for repairs and inspections.

Additionally, Rowan reported that the Rowan Gorilla VII jack-up built in 2002 has been stacked since mid-August and will remain so until it starts working for Perenco in mid-November.

Meanwhile, ConocoPhillips announced its decision to terminate the contract for the Rowan Gorilla VI jack-up built in 2000 at the end of next year.

Finally, Rowan has a binding agreement to sell the Gorilla II jack-up built in 1994 as a non-drilling unit, expected to close in the fourth quarter of this year.