Prospector Offshore Drilling S.A. announced today that Total E&P UK Limited and Elf Exploration UK Limited (“Total”) have executed an amendment to the drilling contract for PROSPECTOR 1 jack-up rig.
The amended terms of the Contract include an increase to the primary contract term from 690 days to 730 days, and a change to the contract extension options giving Total the option to extend the initial duration for a one year period, followed by four each – six month periods. The contract start window has also been amended to include the period between December 2013 and February 2014. The drilling program is anticipated to start in January 2014, following the delivery of PROSPECTOR 1 from the shipyard in China, which is expected to occur in September 2013.
The total aggregate revenue for the initial duration of 730 days is estimated to be USD 142.5 million including mobilization fee.
Robert W. Rose, the Company President and CEO, commented today: “This contract amendment is an important step in the ongoing preparation for the operation of PROSPECTOR 1 at Total locations in the North Sea. The extension of the primary contract term is an indication of the strong market in the central North Sea and we are confident that additional Prospector rigs will be contracted in this region prior to their delivery.”