Ocean Rig confirms Skyros Angola gig

Drilling contractor Ocean Rig has firmed up an agreement for the deep-water drillship Ocean Rig Skyros, a six-year job for Total valued at $1.3 billion that will extend the rig's tenure in Angola.

The rig giant, controlled by Greek shipping magnate George Economou, had already tipped general terms for the newbuild unit's gig with the French major.

The Saipem 10000 dynamically positioned unit, designed to work in water depths of up to 12,000 feet, is confirmed to kick off its new contract third quarter of 2015.

The drillship is the second of four newbuilds ordered by Ocean Rig from South Korea's Samsung Heavy Industries at an estimated $608 million each.

The unit has already been under contract to Total for Angola since December 2013, a job that extends through the first quarter of 2015.

In a note to clients Barclay's called the booking a "solid" contract, estimating the contract day rate at $568,000 excluding $20 million in mobilisation costs, exceeding the bank's expectations.

But Ocean Rig will have to see to the time lapse between the rig's present and future gigs.

"The company will likely push for an extension to its current contract and look into short-term contracts in the event Total will not bridge the contracts," Barclay's said.


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