Awilco Drilling resolves disputed rig revenue billing with Apache
- Exploration & Production
UK-based offshore drilling contractor Awilco Drilling has resolved its dispute with Apache North Sea over standby revenue billing for the drilling rig WilPhoenix.
WilPhoenix is one of Awilco Drilling’s two enhanced pacesetter semi-submersibles. The 1982-built rig is equipped for drilling in water depths up to 1,200 ft.
As previously reported in its 4Q 2016 report in February, the company booked in 2Q the standby revenue billing of $22.8 million in respect of the period that Awilco was awaiting client instructions after the rig had finished its yard stay.
The driller said on Tuesday that this matter has now been resolved. It has been agreed that the disputed billing will be canceled and that the firm term of the 1095 day (three-year) contract with Apache North Sea will be extended by the number of previously disputed days.
The firm term will therefore now continue until April 20, 2018. This agreement will be reflected in the audited annual financial statements for the year ended December 2016, due to be issued in April 2017.