Egyptian unrest halts Atwood operations

Atwood Oceanics Inc. reports that the civil unrest in Egypt has resulted in REW Dea Nile GmbH giving notice to Alpha Offshore Services Co. of a force Majeure event affecting the Atwood Aurora which is drilling offshore Egypt in the Mediterranean.

Offshore staff

HOUSTON – Atwood Oceanics Inc. reports that the civil unrest in Egypt has resulted in REW Dea Nile GmbH giving notice to Alpha Offshore Services Co. of a force majeure event affecting the Atwood Aurora which is drilling offshore Egypt in the Mediterranean.

Contract provisions provide for a day rate of 70% of the current $133,000 rate during the first 15 days of the force majeure event. Thereafter, 50% of the operating rate will apply, up to remediation of the force majeure event or contract termination, whichever occurs first. The drilling contract can be terminated by either party after 30 days of a continuing force majeure event.

2/01/2011

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