A US $468m contract for a drilling programme offshore West Africa has been awarded to Vantage Drilling Company for its Tungsten Explorer drillship, with the owner saying other contracts are also expected to be sealed soon.
The conditional letter of award by an unspecified customer for the newbuild drillship specifies a period of up to four years starting mid-2014. The contract has a minimum duration of two years, while the customer has four six-month options to extend the deal, said Vantage.
The letter of award is subject to customary conditions including negotiating final terms, which is anticipated to be completed in the first quarter of this year. The $468m figure is for estimated revenue over the initial 2-year firm period of the contract, including mobilisation.
Paul A. Bragg, Chairman and CEO, said: “The announced project is an attractive cornerstone for us. Since the Tungsten Explorer is scheduled for delivery in May 2013, we expect to obtain additional work for the unit to commence upon delivery from the shipyard. We are currently discussing drilling requirements for the second half of 2013 and early 2014 with both affiliates of the counterparty to this contract, as well as several others customers. We expect that we will conclude another contract, thereby increasing Tungsten’s contracted backlog, inclusive of options, to be approximately five years from commencement.”
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