Diamond Offshore Nets $429M Drilling Contract in Brazil

OE Staff
Tuesday, November 8, 2022

Offshore drilling company Diamond Offshore said Monday it had received a notification of award of a new drilling program with Petrobras in Brazil.

The soon to be signed four-year contract is for the semi-submersible offshore drilling Ocean Courage. Petrobras will have an option to extend the contract for an additional four years. 

The total estimated value of the firm term of the award is approximately $429 million, including a mobilization fee and the provision of certain additional services. 

"The new contract is expected to be signed imminently and commence late in the fourth quarter of 2023 after conclusion of the rig’s current contract and new contract preparations," Diamond Offshore said.

Bernie Wolford, Jr., President and Chief Executive Officer, stated “This award is a testament to the exceptional performance of our crews and allows Diamond to continue serving the world’s largest operator of deepwater drilling rigs. This program is in addition to the $1.6 billion of backlog we reported as of October 1, 2022."

Diamond Offshore said  Monday that contract drilling revenue for the third quarter totaled $190 million compared to $177 million in the second quarter of 2022. 

The increase in revenue was primarily driven by the Ocean BlackHawk beginning work in Senegal during the quarter, the Ocean Apex and Ocean Patriot rigs both benefiting from a full quarter of utilization, and the Ocean Patriot rig operating under terms of a contract extension with a favorable dayrate increase. 

Diamond Offshore said that some of the increase in contract drilling revenue was offset by the fact that the Ocean Onyx finished its contract in Australia and is now being stacked in Western Australia while the company continues to look for prospects in the area.

Providing his take on the outlook for the offshore drilling market, Wolford said: "Market fundamentals continue to improve in our industry, driving improved dayrates and growing visibility of future demand."

Categories: Deepwater Drilling Industry News Activity South America Drilling Rigs

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