Saudi Aramco extends leases on three offshore rigs

Rowan Gorilla AlfvanBeem Wikimedia CommonsAll three of Rowan’s jackup rigs will now operate at a slightly lower day rate than earlier. (Image source: AlfvanBeem/Wikimedia Commons)Saudi Aramco has given US-based drill rig provider, Rowan, a three-year extension for three of its jackup rigs operating offshore Saudi Arabia

The three rigs, named Rowan Middletown, Charles Rowan and Arch Rowan, have had their leases extended to August 2018, according to the company’s rig update for August 2015. The renewed lease for the rigs is at a day rate of US$69,000 each, which is slightly lower compared to the previous contract which fixed the day rate at US$70,000 per unit.

Rowan said that the day rates included in its fleet contract status report exclude approximately US$20-30mn of what it said were “other miscellaneous aggregate annual revenue the company receives during rig operations (or approximately US$5-8mn per quarter). Day rates also exclude re-billable revenues which are equally offset by drilling expenses.”

Earlier this year, in June, owing largely to the lower oil prices, the Middle East oil giant asked US driller Hercules to cut the day rate for its rigs by 50 per cent to $67,000.

The company said that it continues to estimate planned out-of-service time for its entire fleet of jackups and drillships for the third quarter and full-year of 2015 to range from 3 per cent to 6 per cent, “subject to fleet repositioning and market conditions.”

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