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Ocean Rig bags deepwater drillship extensions offshore Brazil and Angola

20th October 2014

Ocean Rig has been awarded extensions of the drilling contracts for its two ultra-deepwater drillships, the Ocean Rig Corcovado and the Ocean Rig Mykonos, by Petróleo Brasileiro S.A. (Petrobras) for drilling offshore Brazil

Ocean Rig bags deepwater drillship extensions offshore Brazil and Angola
The company has also signed an amendment with Total E&P Angola to extend the date by which Total E&P Angola should exercise the option to extend the term of the contract for two additional one-year periods on the Olympia drillship

The term of each extension is for 1,095 days with a total combined revenue backlog of over USD 1.1bn, excluding reimbursement by Petrobras for contract related equipment upgrades.

The new contracts will commence in direct continuation from the end of the current agreements with Petrobras, in Q1 and Q2 of 2015.

The contracts extensions are subject to partner approvals.

 “We are delighted to announce another quarter of solid operational performance by Ocean Rig, attributed mainly to the company’s the high utilisation rate of approximately 98 per cent,” said George Economou, Ocean Rig chairman and chief executive officer.

“We are also excited with the extension for the contracts for the Corcovado and the Mykonos which brings Ocean Rig’s total backlog to USD 5.5bn.”

The company has also signed an amendment with Total E&P Angola to extend the date by which Total E&P Angola should exercise the option to extend the term of the contract for two additional one-year periods on the Ocean Rig Olympia drillship.

The first option is now exercisable until February 27, 2015 and the second option exercisable within one year after the date of exercise of the first option.

“Petrobras contract extensions and Total’s letter of intent extension for the Olympia is a positive sign for the future prospects of the UDW [ultra-deepwater] market. We see various requirements from clients for additional drilling programmes in Angola. We believe that as oil companies are finalising their budgets for 2015, we will get a much clearer picture of the long term supply and demand balance, which may be tighter than market expectations.”

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