The Eirik Raude Is En Route To Canada

In preparation for the commencement of the PanCanadian drilling contract, The newbuild semisubmersible, Eirik Raude, left Friede Goldman's Pascagoula, Mississippi yard yesterday for the Halifax Shipyard in Nova Scotia (Irving Shipbuilding Inc.), where the outfitting and commissioning of the Rig will be completed. The Rig will also undergo the winterization necessary to operate year round offshore the East Coast of Canada. In connection with the movement of the Rig to the Halifax Shipyard and to ensure continuity, some of the key specialist vendors working on the Rig in Pascagoula will relocate key employees to the Halifax Shipyard to continue work on the Rig. To further enhance continuity on the project, Ocean Rig is moving all necessary members of its site team and Det Norske Veritas from Friede Goldman's yard to the Halifax Shipyard. Pursuant to a transition agreement between Ocean Rig and PanCanadian, PanCanadian has advanced to Ocean Rig $10 million to cover the cost of mobilizing the Rig to Nova Scotia. The remaining work (including winterization) will be completed by the Halifax Shipyard in accordance with the schedule contemplated under the PanCanadian/Ocean Rig partnership drilling contract.