Rowan scores jack-up deal with BP

  • Business & Finance

Rowan Companies, an offshore drilling contractor, has been awarded a contract for one of its jack-up rigs from BP in Trinidad. 

According to Rowan’s latest fleet status report, the company’s high-spec jack-up drilling rig Joe Douglas was awarded a 300-day contract at a dayrate of $157,000.

The contract is starting around August 1, following scheduled time in the shipyard.

Joe Douglas rig is a LeTourneau Technologies 240-C class jack-up built in 2011. It is currently under a contract with BHP Billiton also in Trinidad with a dayrate of $231,000 until April 2016. After that, BHP BIllition is exercising its option to reduce the dayrate to $157,000 until June.

In the report, the offshore driller also said that the jack-up rig Rowan Louisiana, built in 1975, was sold in the fourth quarter of 2015. In addition, the jack-up Rowan Gorilla III, built in 1977, was cold stacked.

 

Rig rates

 

According to the offshore driller, the rates for the drillship Rowan Relentless and the high-spec jack-up Rowan Gorilla VI were adjusted due to additional lump sum fee amortization, and the rate for the N-Class jack-up Rowan Viking was adjusted due to updated lump sum fee amortization.

Namely, the drillship’s rate with Freeport-McMoRan was adjusted from $582,000 to $596,000, while the jack-up rates were adjusted from $355,000 to $362,000 and from $350,000 to $352,000 for the Rowan Gorilla VI and Rowan Viking, respectively.

Furthermore, the contracts for Rowan’s four jack-up rigs, Hank Boswell, Bob Keller, Scooter Yeargain and Bob Palmer, outline a return to the original rate on March 1, 2016. All four rigs are operating for Saudi Aramco in Saudi Arabia.

However, given current market conditions, Rowan noted in the report, the company was in discussions with the customer regarding the rate for the remainder of 2016.

Offshore Energy Today Staff

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