North Atlantic Drilling has been awarded a contract extension for the semisubmersible drilling rig West Phoenix by Total E&P UK.
The contract extension starts mid-March 2016, securing work for the unit through the end of August 2016. The total revenue potential for the contract extension is approximately US$62 million.
A portion of the $62 million will be paid during the currently anticipated idle period from the beginning of September 2015 to the middle of March 2016. North Atlantic Drilling has the ability to market the rig for alternate work during this period.
As part of the agreement to extend the West Phoenix, the North Atlantic Drilling agreed to a dayrate reduction on the current contract effective from 1 June 2015 until its expected conclusion at the end of August 2015, resulting in a reduction to the remaining revenue potential of approximately $16 million.
