Ocean Rig's Cost for the Eirik Raude Goes Up
The most recent estimate show that the completion of the Eirik Raude at the yard in Canada will result in increased costs compared to previous estimates. The cost increase, which is estimated to be US $25 million, relates to increased number of man-hours and more expensive man-hours due to overtime and subcontractors. The Company is still working with a scheduled completion of the rig and start up of operations during the end of second quarter this year.
In other news, the Company has entered an agreement regarding the sale and take-over in China of the Company's two baredecks currently laid up in China. The aggregate sales price is US $45 million. The sale is subject to several conditions, including the buyer inspecting and approving the baredecks. Ocean Rig will have an option to buy the baredecks back within one year from the date of sale at a purchase price of US $56 million.