(Houston)- Oil and gas drilling services provider TODCO has announced the reactivation of a cold-stacked drilling rig against a term contract from an independent oil and gas company.
The 250-ft mat slot jackup rigTHE 256 will be reactivated against a one-year term contract with projected revenues of $38 million. Reactivation and upgrade costs are estimated at $18.6 million, consisting of approximately $12.4 million of reactivation costs to be expensed over the 150-day reactivation period. An additional $6.2 million will be required for capital upgrades to the rig.
"We are pleased to announce the signing of this term contract to facilitate the reactivation of our jackup rig,THE 256," commented Jan Rask, president and CEO of TODCO.
Rask went on to say that "including this reactivation, we are currently reactivating two jackup rigs, two submersible rigs and one inland barge rig. This is further indication of the strong market we are experiencing in our industry today."