Pride International, Inc. announced on 1 May that it won a 5-year contract from a subsidiary of BP for Pride's advanced-capability, ultra-deepwater drillship. Pride expects the new contract to generate approximately $984 million over its term. The unit is scheduled for delivery in mid-2010. The unit is being constructed at the Samsung Heavy Industries, Co. Ltd. (SHI) shipyard in Geoje, South Korea on a fixed-price basis and is expected to be initially utilized in the U.S. Gulf of Mexico, with further operations possible on BP's other global deepwater interests. The drillship is one of 3 Pride ultra-deepwater units under construction at the SHI shipyard. All 3 units have now been awarded contracts with durations of at least 5 years.
The 5-year contract is expected to begin during the fourth quarter of 2010, following the completion of shipyard construction, mobilization of the rig to an initial operating location and customer acceptance testing. Anticipated revenues exclude reimbursement of costs associated for mobilizing the rig. The contract also provides for a cost escalation provision effective from 30 April 30, 2008 through the five-year contract term.
Pride Angola featured in photo.
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