Offshore staff
HOUSTON -- Hercules Offshore has signed contracts to provide Saudi Aramco with two jackup drilling rigs for three-year terms plus one-year fixed price options at the same rate.
TheHercules 300 and Hercules 261, currently known as the High Island I and High Island VIII, respectively, will fulfill the contracts. The Hercules 300 was acquired on March 14, 2008, and the closing on the purchase of the Hercules 261 is expected upon the completion of its current contract commitment in May 2008.
Hercules Offshore is negotiating contracts, which are expected to be executed shortly, for the dry tow transportation of the rigs, from the US Gulf of Mexico to a shipyard in the Middle East in 2Q 2008, where they will commence 90 to 120 days of contract preparation work.
The contracts with Saudi Aramco are expected to commence on Sept. 30, 2008. Potential revenue generated over the three-year contracts totals $151 million forHercules 300 and $140 million for Hercules 261, which excludes payment to the company of reimbursable expenses and a total of approximately $25 million for mobilization of both rigs.
03/24/2008
