Diamond Offshore to Scrap Six Rigs

Deepwater drilling contractor Diamond Offshore Drilling, Inc. has revealed plans to retire and scrap six of its mid-water semisubmersible rigs.

The plans are expected to result in a non-cash impairment charge in the third quarter of USD 109 million before tax, or USD 0.84 per share after tax, the company said.

The retired units include the Ocean Epoch, Ocean New Era and Ocean Whittington, which are currently cold-stacked, and the Ocean Concord and Ocean Yatzy, which are currently idle in Brazil.

The sixth unit, the Ocean Winner, will be retired and scrapped upon completion of its current contract term in Brazil.

According to Marc Edwards, President and Chief Executive Officer, the company’s newest units—four drillships and a harsh environment semisubmersible—are contracted into 2019 or beyond.

“By operating all of our new-build drillships in the U.S. Gulf, we are positioned to enjoy meaningfully lower operating costs than in other ultra-deepwater markets,” added Mr. Edwards.

Press Release