Chevron Hires Songa Mercur for Work Offshore Australia

Songa Offshore

Songa Offshore has signed a contract with Chevron Australia Pty Ltd for the semisub, Songa Mercur. The contract is for a firm period of 270 days with options of 90 days, plus two options of six months each - at market rate.

Contract commences in Q3 2006. Expected revenue is approximately US $81 million for the 270-day period, excluding mobilization/demobilization revenues and contract preparation.

Songa Mercur is currently undergoing contract preparation work in Galveston. The rig will be wet towed to Singapore, shortly. Estimated duration for the mobilization is approximately 100 days. The rig will stay in Singapore for about 30 days for final start-up preparations, before being towed to Australia. Certain expenses incurred for compliance with NOPSA requirements and Client requirements will be shared between the Client and Songa.

As the Songa Venus also is contracted for work in Australia, Songa will benefit cost wise from having two rigs working in the same area.