Global Processing

Atwood Gets Chevron Contract for New Rig

January 8, 2008
Atwood Oceanics Inc. said recently that it will lease a semisubmersible offshore drilling rig set for construction to Chevron Australia Pty. Ltd. for at least three years, the Associated Press reported.

The subsidiary of Chevron Corp. will have a week from the date the rig is delivered to exercise an option to extend the contract term to six years.

The ship will operate at a daily rate of $470,000 for the three-year period, or $450,000 if Chevron accepts the six-year option. Both rates can be adjusted if costs increase.

Atwood has contracted with Jurong Shipyard Pte. Ltd. to build the vessel in Singapore at an estimated cost of $570 million to $590 million. It is expected to be delivered in 2011.