Wednesday 19 October 2016

French supermajor Total is holding on to a Rowan Companies jack-up for another eight months with options for a longer extension.

The oil giant currently has the Rowan Gorilla V working in the UK North Sea at $175,000 per day, but has extended the deal for eight months firm to July 2017 at an undisclosed dayrate that is below $100,000.

Total also holds fixed price options to keep the rig for a further six months, also for below $100,000 per day.

The unit will be off hire in the third quarter as it heads for repairs and inspection work.

Total extended its charter of the Gorilla V in May last year for a further two wells, with the rate dropping from $274,000 to $170,000 per day. The rate then increased to $175,000 at the start of this year and remained in place until the charter ended in August.

Lundin Petroleum has also arranged six 90-day priced options on the jack-up Rowan Viking for between $180,000 and $230,000 per day. The Swedish independent currently has the unit on hire off Norway for between $275,000 and $282,000 a day.

Rowan also said in its latest fleet status report that it has a binding agreement in place to sell its jack-up Rowan Gorilla II as a non-drilling unit. The sale is set to close in the fourth quarter.

The Houston-based driller also confirmed that Cobalt International Energy has let the ultra-deepwater drillship Rowan Reliance go early, now finishing its contract on 31 March. Cobalt is to pay Rowan $96 million for the early termination, but if it chooses to keep the unit past the new termination date, it will pay just $262,000 a day.