LONDON, UK — Aquadrill LLC has extended the charter hire agreement for the Auriga rig with a subsidiary of Diamond Offshore Drilling Inc. after reaching an agreement on the one-year mutually agreed option in the current underlying drilling contract.
Under the terms of the extension, the Auriga rig will be provided for a one-year drilling contract plus a one-year mutually agreed option for operations in the US Gulf of Mexico. The charter hire agreement will be extended if the parties mutually agree to exercise the optional term.
The terms of the charter hire agreement are consistent with the current management services agreements in place between Aquadrill and Diamond Offshore. Further, the resulting financial benefits for Aquadrill are as if the company had entered into the drilling contract directly.
The total contract value for the firm portion of the drilling contract is expected to be $150 million.
Commencement is expected in March 2023 in direct continuation with the current drilling contract.