The contract will begin between May 24 and July 7, 2017, and has an estimated duration of around 130 days. The operating day rate will be $185,000.
According to Atwood Oceanics’ most recent fleet status report of Nov. 2, the rig, which has a water depth rating of 8,200 ft (2,499 m), was working for Woodside off Australia at a rate of $450,000/d until Dec. 15, where the rate was set to drop to $185,000/d.
A note on the contract released by James West, Senior Managing Director & Partner ofEvercore ISI’s Oil Services, Equipment & Drilling Fundamental Research, contained additional insight: “Recall that during its most recent earnings call, Atwood management cited increasing optimism that the company would secure 2017 follow-on work for the Osprey in Australia.
“The ultra-deepwater rig is scheduled to roll off of its current Woodside contract this month, at which point the rig will begin a one-well contract for ConocoPhillips in Australia through March 2017.
“In January 2018, the rig is scheduled to begin another 20-22 month drilling contract for Woodside in offshore Australia, and as such, had been actively marketed for the March-December 2017 time period.
“The latest contract win adds about $24 million to a backlog of about $750 million, and represents around 50% of theOsprey’s calendar availability in 2017. Securing this follow-on work will allow the company to capitalize on the Osprey’s unmatched rig efficiency in order to offset recent jackup rollovers reflected in a largely disappointing November financial status report.”