Saudi Aramco chops dayrates for Hercules Offshore’s rigs

Offshore driller Hercules Offshore has seen cuts in dayrates for three of its drilling rigs operating in Saudi Arabia.

Hercules Offshore on Thursday said that it received from Saudi Aramco on March 9, 2016, a notice reducing the dayrates under its five year contracts for the Hercules 261 and Hercules 262 from $67,000 per day to $63,650 per day.

The company said the reduced dayrates would apply from January 1, 2016, through December 31, 2016.

Saudi Aramco also advised the company that the dayrate for the Hercules 266 has been reduced from $67,000 per day to $63,650 per day effective January 1, 2016, through the remaining term of its contract, Hercules Offshore said.

Earlier this week, Baker Hughes released a report in which it said that there were 99 less active international offshore rigs in February than in the same month of 2015. However this doesn’t seem to have much of effect on dayrates and potential new contracts.

Namely, also this week, Transocean, the world’s largest offshore drilling contractor revealed it was not optimistic about the drilling rig market recovery by deciding to delay the delivery and related payments of five high-specification jack-ups until 2020. Transocean ordered these rigs in 2013.

Offshore Energy Today Staff