Rowan Inks Contract for Second Newbuild Ultra-Deepwater Rig

Anadarko Petroleum Corporation has awarded a contract to Rowan Cos., for the Rowan Resolute, one of four ultra-deepwater drillships under construction for Rowan at Hyundai Heavy Industries Co. Ltd.'s shipyard in Ulsan, South Korea.

Following its delivery late in second quarter 2014, the drillship will operate under a three-year contract in the U.S. Gulf of Mexico beginning late in third quarter 2014, Rowan said in a press release Thursday. The contract's day rate is in the low $600,000 range, according to Rigzone's RigLogix database.

"While the rate and the initial return on the Resolute will not do much to change investment sentiment on the space, we view the fixture as a net positive for Rowan as it increases its contracted backlog by approximately 20 percent to approximately $4 billion, de-risks Rowan's newbuild program with just two uncontracted rigs remaining, and aligns Rowan with a core deepwater customer with an extensive exploration and development program," according to a June 20 GHS Research analyst note.

Indonesia-based Pertamina Hulu Energi also awarded Rowan a 170-day contract for the Gorilla II ('480 ILC) at a day rate in the high $160s, an increase over the previous day rate in the mid-$130s. The contract is set to begin in September of this year, Rowan said in a press release.

Rowan reduced the number of days the rig would be out of service in second and third quarter 2013 from 120 days to 88 days for repairs, upgrades, inspections and transit. Twenty of the 88 days are for transit to the well site in Indonesia and will be compensated by Pertamina.

The Rowan Gorilla VI (450' ILC) is scheduled to return to service in December after entering a shipyard this month for repairs. The amount of downtime for the rig has been increased from 150 days to 182 days. Rowan also increased the amount of off rate time for the Rowan California (300' ILC) in the third quarter by 22 days to 52 days for repairs, upgrades and inspections. The rig is expected to return to work in August after entering the shipyard in January of this year, Rowan said.



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