Mermaid Maritime Public Company Limited (Mermaid, MMT or the Group) disclosed Thursday that its 33.8 percent drilling associate Asia Offshore Drilling Limited (AOD) has reached an agreement with its customer Saudi Arabian Oil Company (Saudi Aramco) to reduce the operating day rates on the jackups AOD I (400' ILC), AOD II (400' ILC), and AOD III (400' ILC) by 10 percent.
Mermaid’s associate company AOD under the management of Seadrill Limited was awarded a firm 3 year drilling services contract for all of its three jackups AOD I, AOD II and AOD III to provide drilling services to the Saudi Aramco for operations in offshore Saudi Arabia. Commencing 2013 to 2016, the contracts came with options for the customer to extend such contracts for another one year to 2017. The AOD jackups have been operating successfully with utilization rates in excess of 95 percent where in the most recent quarter, AOD jackups achieved an average 99 percent utilization rates.
The operating day rate reductions are effective from April 1 through to March 31, 2016. This will reduce AOD’s backlog by approximately $20 million.
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