The Pride Mexico is a conventionally moored semisubmersible rig currently equipped to operate in water depths of up to 1,100 feet. The rig recently completed a three-year contract offshore Mexico and is currently mobilizing to a shipyard in Galveston, Texas. The shipyard program includes a previously planned regulatory survey and maintenance, upgrade of the rig's water depth capability to 2,300 feet and modifications to the rig's mooring system and crew quarters. The total expected capital expenditure associated with the shipyard project is approximately $120 million, inclusive of the previously planned expenditures.
'The five-year contract for the Pride Mexico further demonstrates the strong business fundamentals associated with the floating rig market segment," noted Louis A. Raspino, President and Chief Executive Officer of Pride International, Inc. "Following the relocation of this rig, the company will have an industry-leading seven semisubmersible rigs operating off the coast of Brazil, expected to be one of the industry's strongest regions for floating rigs for many years to come. The upgrade of the Pride Mexico demonstrates our willingness to opportunistically enhance the capabilities of our fleet at attractive terms."
The company also announced its 2007 capital expenditure budget has been revised to $470 million, up from the previously stated $400 million.
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