Home' Trinidad and Tobago Guardian : October 10th 2013 Contents BG8 | ENERGY
BUSINESS GUARDIAN www.guardian.co.tt OCTOBER 2013 • WEEK TWO
Rowan Companies plc, an offshore contract driller, has
been awarded a US$160,000 per day contract to drill
for four oil and gas companies in T&T, the company
said in its latest monthly fleet status report dated Sep-
Rowan said in a statement that among "the notable events" in its
fleet status report was that Rowan Gorilla III was "awarded a multi-
well contract with a rig share group that includes EOG Resources,
Trinity Exploration and Production plc, Repsol and Centrica, estimated
at one year commencing mid-October 2013 at US$160,000 per day,
above its previous day rate of US$145,000."
In its fleet status report, the company said the "contract is for a
firm term of seven wells with an expected duration of one year. The
rig share group has the option to extend the contract for a number
of wells to be specified in the notice of option exercise. Wells spud
in the first year of the contract attract an operating rate of US$160,000
per day. The day rate for wells spud in the second year of the contract
is at higher than current day rates."
The Houston-headquartered company said another member of its
fleet, Rowan Louisiana, was "awarded a one-well contract for EnVen
estimated at 30 days commencing in October 2013 in the Gulf of
Mexico at US$95,000 per day (no change from previous day rate) and
another one-well contract estimated at 45 days at US$125,000 per
Rowan said its Gorilla VII also "increased 3Q over 4Q 2013 off-rate
time by 21 days to 82 days for leg repairs that started in mid-July 2013.
Operating costs will be expensed during this period. Third party repair
costs will also be expensed and
are expected to total US$6 million
in 3Q 2013 and US$1 million in
Previously scheduled 140 days
out of service time for repairs, upgrades and inspections is expected
to occur sometime during 2015 instead of starting at the beginning
of 2Q 2014, the company said.
As for its Gorilla VI, Rowan said it "increased 4Q 2013 over 1Q 2014
out of service time by 30 days to a total of 105 days for repairs, upgrades,
customer required modifications and inspections."
The company said this rig is expected to receive compensation for
the additional 30 days of out of service time, which will be amortised
over the contract term and is included in the day rate, causing the day
rate to rise from the previously reported US$350,000 to US$358,000.
On its Gorilla V, Rowan said: "Previously scheduled 30 days of off-
rate time for inspections is expected during 1Q 2014 instead of 4Q
2013. Rig is expected to be out of service for an estimated 140 days
in mid-2015 for repairs, upgrades and inspections."
Rowan's Gorilla II increased 3Q 2013 off-rate time by ten days to
a total of 75 days for repairs, upgrades and inspections. The company
said 3Q 2013 out of service days include 30 days of compensated rig
mobilisation, which will be amortised over the contract term and is
included in the day rate, causing the day rate to rise from the previously
reported US$164,000 to US$169,000.
Out-of-service days include days for which no revenues are recognised
other than operational downtime and cold-stacked days. The company
said it may be compensated for certain out-of-service days, such as
for shipyard stays or for transit periods preceding a contract.
However, Rowan said, recognition of any such compensation received
is deferred and recognised over the period of drilling operations.
Operational downtime is when a rig is under contract and unable
to conduct planned operations due to equipment breakdowns or pro-
cedural failures. No operational downtime is included in projected out-
of-service days, but the company estimates operational downtime to
account for approximately 2.5 per cent of in-service days in current
and future quarters.
Rowan Companies plc is a major provider of international and
domestic contract drilling services with a leading position in high-
specification jack-up rigs. The company's fleet of 30 jack-up rigs is
located worldwide, including the Middle East, the North Sea, Trinidad,
Egypt, Southeast Asia and the Gulf of Mexico.
Additionally, Rowan has four ultra-deepwater drillships under con-
struction with three of the four drillships under three-year contracts.
The company's Class A ordinary shares are traded on the New York
Stock Exchange under the symbol RDC.
Rowan awarded US$160,000
daily drilling contract in T&T
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