November 10   |   Atwood Southern Cross   |   2,000 ft.   Semisub
After sitting on the sidelines all year, the Atwood Southern Cross, a 2nd generation, midwater semi, appears likely to return to work in 2010. Although a formal contract is still subject to regulatory approval, Atwood announced that the rig was selected by AuDax, an Australian oil and gas and mining company, to drill one exploration well in the April - September 2010 time frame. While not yet finalized, our sources indicate the dayrate is likely to shake out between $130-$160,000, and given the rig's current location in Spain and the amount of time the rig has been idle, mobilization reimbursement is not likely to constitute much of the consideration. While this particluar award is unlikely to keep the rig active for more than a month or two, Atwood believes more work will be available following this initial assignment.

November 13   |   Bob Palmer   |   550 ft.   Jackup
Mariner Energy has hired the Rowan Bob Palmer, a 550' IC jackup, to drill and complete one well in South Marsh Island Block 150. The dayrate for the work is in the low-$60s. Industry sources have indicated that Rowan is bidding this rig for work outside of the U.S. Gulf of Mexico. The rig could head to the North Sea or possibly the Middle East in early 2010.

November 16   |   Byford Dolphin   |   1,500 ft.   Semisub
BP's contract signed in October 2008 for the Byford Dolphin, a midwater semi in the North Sea, has come into question recently. BP's attempts to renegotiate the terms of the contract have been unsuccessful and the parties are at an impasse. BP is disputing the terms of the contract and is arguing it has the right to terminate the contract before the start date in January 2010 without any compensation penalty. The rig is contracted to BP for a three year term in the UK sector of the North Sea at a dayrate in the low-$410s, above current leading edge daryates for this rig type. An English court is expected to rule on the dispute later this month.

November 11   |   Songa Trym   |   1,250 ft.   Semisub
Statoil has issued a letter of intent to Songa Offshore for the extension of the Songa Trym contract. The current contract has a dayrate in the mid-$470s and expires Feb. 2011. The new extension would have a dayrate in the mid-$360s with the new rate beginning Dec. 2009 through July 2012. The new contract also includes an option for up to two years which must be exercised by July 2011. Should Statoil decide to declare the option, any cost associated with continued maintenance of the AoC would be amortized and added to the dayrate for the option period. Statoil is also considering upgrades to the rig's subsea completion capabilities. The cost for these upgrades would be paid by Statoil and amoritized over the firm period of the contract. Songa and Odfjell have revised their operating agreement for the rig and Odfjell will continue to manage the rig at a reduced fee.

November 18   |   Songa Trym   |   1,250 ft.   Semisub
Statoil has finalized its contract extension with the mid-water semisub, Songa Trym. The new contract will run until July 2012 and has dayrate in the mid-$360s. The new dayrate is set to start December 2009.