Saudi Aramco calls off contract termination for Hercules 261 jack-up
- Business & Finance
Hercules Offshore, Inc., a U.S.-based offshore drilling contractor, has received a notice from Saudi Aramco withdrawing the previously issued notice of contract termination for the Hercules 261 jack-up rig.
To remind, Hercules Offshore first received the notice of termination from Saudi Aramco in February 2015 and the termination was supposed to take place in March. Saudi Aramco later extended the termination date to May 31, 2015.
According to Hercules, Saudi Aramco declared that all terms and conditions of the contract now remain in full force and effect for the remainder of the five-year term of the contract.
However, Hercules Offshore also said that the dayrates on this rig, the Hercules 262 and the Hercules 266, which are also under contract with Saudi Aramco, are expected to be significantly reduced to bring such dayrates in line with current market rates for similarly-classed rigs in the region.