Rowan sells two rigs, enters new deals

Rowan Companies, a Houston-based drilling contractor, has sold two jack-up drilling rigs effective July 1, 2015. In addition, Rowan has signed several new contracts and contract extensions. 

Namely, the Rowan Alaska and the Rowan Juneau have been retired from service as drilling units as the company has entered into contracts for sale of the rigs with an expected closing by the end of July 2015. The sale agreements prohibit their future use as drilling units.

Drillships

According to Rowan’s latest fleet status report, the company’s ultra-deepwater drillship the Rowan Reliance is currently drilling North Platte #3 in the Gulf of Mexico for Cobalt International Energy after plugging and abandoning North Platte #2 on April 6, 2015.

Rowan noted it is working together with Cobalt toward a resolution that may include certain days at zero or reduced dayrate. The drillship’s current dayrate is $602,000 and it is under contract until February 2018.

Furthermore, Rowan’s other ultra-deepwater drillship the Rowan Relentless started operations with Freeport-McMoRan in the U.S. Gulf of Mexico on June 16, 2015. The drillship is under contract till June 2017 with a dayrate of $582,000.

In addition, Rowan’s ultra deepwater drillship the Rowan Renaissance is currently mobilizing to the U.S. Gulf of Mexico from West Africa at a reduced dayrate of $620,000 and is expected to start operations in September 2015.

The drillship’s previous contract, with a dayrate of $650,000, was with Repsol in West Africa and it expired in July 2015.

Jack-ups

Rowan’s high-spec jack-up rig the Rowan Gorilla VII has been awarded a contract extension till December 2016 with Apache at a 2015-2016 blended dayrate of $181,000 with a four-month priced option to follow at the same rate. The rig operates offshore UK. According to Rowan, the rig completed repairs and inspections in 2Q 2015.

Further, the jack-up rig Rowan Gorilla V has received a priced option for one well with an estimated duration of 260 days at a dayrate higher than the firm term. The rig is working for French Total offshore UK.

Rowan expects that the jack-up rig Ralph Coffman will have an off rate time in 3Q 2015 for repairs and inspections.

In addition, three of Rowan’s jack-up rigs have received contract extensions with Saudi Aramco at their current dayrates.

Namely, the Arch Rowan rig has been awarded two extensions of one month each to August 2015 from June 2015 at the dayrate of $70,000. The rig operates in Saudi Arabia. The company expects an off rate time for the rig in 1Q 2016 for repairs and inspections.

The Charles Rowan has been awarded two month extension to August 2015 from June 2015 also at the dayrate of $70,000.

And finally, the Rowan Middletown jack-up rig has also been awarded two month extension, with Saudi Aramco, from June 2015 to August 2015 at the dayrate of $70,000.

Alongside these, Rowan’s high-spec jack-up Joe Douglas has been awarded a one well contract in the Gulf of Mexico with Rooster Energy. The contract started in late June and it is estimated to last for 45 days at $53,000.

Following the Rooster Energy contract, the rig will mobilize to Trinidad for BHP with operations expected to start in October 2015.

The Rowan Gorilla IV has been awarded a multiple-well contract in the Gulf of Mexico with a total estimated duration of 90 days with Energy XXI at a dayrate of $70,000.

Finally, the Rowan Gorilla III is expected to become available in mid-August 2015 due to early termination of the contract. Rowan noted that the revenue for balance of contract term (January 2016) is expected to be recognized in 3Q 2015. The rig is now operating offshore Trinidad under a dayrate of $165,000.

Offshore Energy Today Staff

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