Diamond Offshore Lands $1.2 Billion in Floater Contracts

Diamond Offshore has two signed and five pending term contracts that would provide total combined revenue of up to $1.2 billion over the lives of the contracts. The work will be performed in the Gulf of Mexico, Brazil and the U.K. sector of the North Sea. Diamond Offshore has not yet entered into the pending contracts, and all of the pending contracts are subject to customary conditions including execution of definitive agreements.

Of particular note, in the Gulf of Mexico, the Company received a letter of intent for a two-year term contract utilizing the Ocean Confidence for deepwater operations at a competitive market rate. In Brazil, Diamond Offshore has been notified that contracts are being renewed on the Company's fleet of four deepwater rigs operating in that market for terms of four years each (five years for the Ocean Clipper) at dayrates that could generate total revenues of over $880 million, excluding potential bonuses.

Larry Dickerson, President and Chief Operating Officer, said, "These developments demonstrate the continuing growth in demand for mid-water and deepwater equipment seen in markets across the globe. New dayrate highs have been achieved for term work utilizing 4th and 5th generation rigs in the U.S. Gulf and for mid-water rigs in the U.K. sector of the North Sea. In Brazil, we are extremely pleased to receive contract extensions for substantial terms at dayrates reflecting today's vibrant market. Diamond Offshore expects these seven contract awards to provide a solid stream of future revenue and cash flow into 2006 and beyond."

The following table summarizes some of the terms of the contract awards that are expected to be included in the definitive agreements:

                               Maximum    Potential   Estimated
                               Contract   Bonus       Contract
            Contract           Revenue(2) Revenue(3)  Start
    Rig     Status(1) Location ($ 000's)  ($ 000's)   Date      Term
                                                      Jan.    2 years 
Confidence     LOI    US Gulf   $204,400          -   2006    + option
                                                      July    1 year 
Victory      Signed   US Gulf    $74,825          -   2005    + option
Clipper       NOCA     Brazil   $328,500    $16,425   2005    5 years
Alliance      NOCA     Brazil   $226,300    $45,260   2005    4 years
Yatzy         NOCA     Brazil   $167,900    $28,543   2005    4 years
Winner        NOCA     Brazil   $160,600     $8,030   2006    4 years
                                                      March   1 year 
Guardian     Signed     U.K.     $58,400          -   2006    + option
Total                         $1,220,925    $98,258

(1) Letter of Intent; Notification of contract award

(2) Generally, rig utilization rates approach 95-98% during contracted
    periods; however, utilization rates can be adversely impacted by
    additional downtime due to unscheduled repairs and maintenance.

(3) Based on achievement of certain performance criteria.
For More Information on the Offshore Rig Fleet:
RigLogix can provide the information that you need about the offshore rig fleet, whether you need utilization and industry trends or detailed reports on future rig contracts. Subscribing to RigLogix will allow you to access dozens of prebuilt reports and build your own custom reports using hundreds of available data columns. For more information about a RigLogix subscription, visit www.riglogix.com.

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