Mermaid's Newbuild Tender Rig Successfully Launched in Malaysia

Mermaid has advised that its newbuild tender assist drilling rig KM-1 was successfully launched at 08:00 hrs on July 27, 2009 at Kencana HL Sdn. Bhd.'s construction yard in Lumut port, Perak, Malaysia.

The launching represents a significant step towards the completion of the KM-1 scheduled for delivery to Mermaid within the fourth calendar quarter of 2009. The KM- will be Mermaid’s third tender rig in addition to the MTR-1 and MTR-2.

Both the MTR-1 and MTR-2 are currently providing offshore drilling services in Indonesia for Hess (Indonesia Pangkah) Ltd. and Chevron Indonesia Company respectively. Subsequent to its delivery, the KM-1 will commence a 5-year offshore drilling program in Malaysia with Petronas Carigali Sdn. Bhd. in a contract potentially valued at US $235 million.