Operational Down Time for Eirik Raude

In January the drilling rig Eirik Raude experienced operational downtime due to a breakage of the top drive main shaft. The company was in possession of a spare shaft and following the replacement of this critical item, the unit resumed normal operations.

The unit later experienced unrelated operational downtime due to broken riser tensioner wires. The damaged wires have been replaced, but 3 to 4 additional days of off-hire is expected related to this incident. Both repair periods have been effected by severe weather conditions.

There were no injuries to personnel related to these incidents.

Ocean Rig is conducting a thorough investigation of the two incidents to identify the root cause. The company has also engaged an independent company (DNV) to analyze the damaged equipment with respect to potential material and design issues. There are no indications that the incidents are due to operational failures or lack of maintenance.

The total combined revenue and cost impact from both incidents is estimated to approximately $10 million. The operation of the company's other rig, Leiv Eiriksson, has been satisfactory over the last months.

Ocean Rig owns and operates two of the world's largest and most modern drilling rigs, built for ultra deep waters and extreme weather conditions. The units are currently operating offshore Angola and Canada.

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