BOT Lease commission newbuild jackup construction

BOT Lease Co Ltd, a leasing company linked to the Mitsubishi UFJ financial group has ordered a newbuild jackup rig at Sembcorp Marine's PPL shipyard in Singapore. The unit will be built to the yards Pacific 400 specifications and is expected to be delivered by the end of January 2015 with a total construction price of US$220.5 million. The project will be managed by the Japan Drilling Company (JDC) during the construction phase.

Petronas exercises one year option for 'Maersk Convincer' jackup

Petronas Carigali has exercised an existing contractual option to extend the contract of the ‘Maersk Convincer’ jackup rig currently operating for the company in Malaysia. The contract extension means that the ‘Maersk Convincer’ will now be working off the coast of Malaysia for Petronas until mid-November 2014, with the unit performing high-pressure-high-temperature and under balanced drilling operations. The value of the one year contract extension is US$54 million and means that the unit will have been constantly working for Petronas for a firm period of three years upon completion of the new extension.

Japan Drilling Company will operate newbuild jackup upon delivery from shipyard

Japan Drilling Company (JDC) has announced that the company will lease the newbuild ‘Hakuryu-12’ jackup rig upon delivery of the unit from the shipyard in 2015. JDC will initially operate the unit for a firm five year period from the rigs owner BOT Lease Co. The newbuild ‘Hakuryu-12’ has similar specifications to JDC’s ‘Hakuryu-10’ jackup rig and should provide JDC with additional earnings upon delivery from the shipyard. JDC is already overseeing the construction of the unit at SembCorp Marine's PPL shipyard in Singapore, where the unit is being built to the Baker Marine 400 class design.

PPL shipyard delivers 'fortius' jackup two months ahead of schedule

Integradora De Servicios Petroleros Oro Negro (Oro Negro) the Mexican focused jackup rig owner and manager has taken delivery of the company’s third jackup rig and the first to be constructed at the PPL shipyard in Singapore. The ‘Fortius’ unit was delivered on the 27th September 2013, two months ahead of schedule by the shipyard and the unit began its 45 day mobilisation to the Gulf of Mexico in October. Oro Negro’s ‘Fortius’, is a Baker Marine Pacific 400 class jackup and is capable of drilling in water depths of 400ft and down to depths of 30,000ft. Oro Negro has five further jackups on order at PPL’s yard, all of which are being built to the same design as the ‘Fortius’.

Spudding of CAT BA-1X exploration well

Salamander Energy announces the spud of the Cat Ba–1X (“101-CB-1X”) exploration well in Block 101-100/04, offshore northern Vietnam. The 101-CB-1X well will be drilled to a depth of approximately 1,900 metres. The primary objective is a Palaeozoic carbonate, (buried hill) structure with secondary objectives in the overlying Tertiary clastic section. The mean gross pre-drill estimate of prospective recoverable resource is approximately 100 MMbo. The well will be drilled by the Aquamarine Driller jack-up rig in a water depth of 49 metres. It is expected to take approximately 25 days to complete on a dry hole basis. Salamander holds a 30% operated interest in Block 101-100/04, subject to final government approval of the farm-out of 20% interest to JX-Nippon Oil & Gas Exploration Corporation announced in May 2011.

CAT BA-1X sub-commercial oil and gas discovery

Salamander Energy announces the completion of the Cat Ba–1X (“101-CB-1X”) exploration well in Block 101-100/04, offshore northern Vietnam. Block 101-100/04 was the subject of a farm out as announced on 31st May 2011. The 101-CB-1X well was drilled to a total depth of 1,724 metres. The well encountered 38 metres of net hydrocarbon pay in Tertiary clastics, the secondary objective of the well. The pay section comprises a series of gas-bearing sandstones underlain by an oil-bearing reservoir. A full suite of wire-line logs and pressure data were recorded over the reservoir sections and samples of oil and gas were recovered. These data show that the Tertiary reservoirs are of good quality, however pressure data and seismic mapping indicates the in-place resource volumes encountered by the well are probably below levels needed for commercial development. No oil shows were observed and only low levels of gas were recorded while drilling the primary objective, the Palaeozoic ‘buried hills’ play. Subsequent wire-line logging did not reveal any zones of interest. The Cat Ba-1X well has subsequently been plugged and abandoned as a sub-commercial discovery.

Atwood Mako Rig Spudded First Well

Salamander Energy plc announces that the Atwood Mako jack up rig (the “Mako”) has arrived on location and commenced development drilling from the Bualuang Alpha platform on the Group’s B8/38 licence in the Gulf of Thailand. The Mako is on long term contract, and will initially complete a short development drilling programme on the Bualuang Alpha Platform. Salamander will then be using the rig to drill two exploration prospects on its acreage in the Greater Bualuang area ahead of an extended development drilling campaign from the Bualuang Bravo platform from the end of October.

Spudding of Bualuang B8/38-8 (NW-1) Exploration Well

Salamander Energy plc announces the start of its exploration campaign in the Greater Bualuang area, offshore Gulf of Thailand. The B8/38-8 (NW-1) well is testing one of a number of fault terraces to the north west of the Bualuang oil field. Resource potential of 10 – 15 MMbo has been identified in a cluster of prospects to the north of the field. The B8/38-8 (NW-1) well will be drilled by the Atwood Mako jack up rig that is under long term contract to the Group and recently concluded a short drilling programme from Bualuang Alpha Platform. B8/38-8 (NW-1) is expected to be a 14 day well and is the first of two exploration wells that are currently envisaged as part of the immediate programme. The Bualuang Bravo Platform construction is complete and the load-out, sail-away, hook up and commissioning will commence later this month. Once installed, the rig will move onto the Bravo Platform for a 16 well development drilling programme, which will lead to a sharp rise in production from the Bualuang field in 2013.

NW-1 Exploration Well Update

The B8/38-8 exploration well targeting the Northwest Terrace prospect (“NW-1”) has been drilled to TD. The NW-1 well was targeting a small fault terrace structure located north of the Bualuang field. The well reached a TD of 1,792 metres true vertical depth sub-sea (“TVDSS”) and a program of wire-line logging, pressure and liquid sampling undertaken. The well encountered thin oil-bearing early Miocene T2 sandstones below 1,725 metres TVDSS. Well-developed sections of both the T5 and T4 mid-Miocene sandstones were found to be water-wet. The initial conclusion is that the sand-rich section of the T5 has led to leakage across the bounding fault at this location. The well is currently being plugged and abandoned as a sub-commercial oil discovery.

Rayong Exploration Well

Salamander Energy plc announces that the G4/50-4 exploration well, targeting the Rayong prospect in the Kra Central sub-basin, Block G4/40, Gulf of Thailand, has been drilled to a total vertical depth subsea of 1,889 metres. The well encountered a 119 metre section of excellent quality P20 Miocene sandstones, the primary target on depth prognosis. However, following the completion of a logging and sampling programme, these sandstones were found to be water-wet. In the deeper Permian carbonate target the well encountered a 34 metre section of Ratburi limestone which was not deemed to be of reservoir quality. The well has been plugged and abandoned and the Atwood Mako rig is now mobilising to drill the Surin prospect in the Western Central sub-basin.

Spud of G4/50-5 Exploration Well

Salamander Energy plc announces the spud of the next well in its on-going exploration programme in Block G4/50, Gulf of Thailand. The G4/50-5 exploration well is targeting the Surin prospect, located in the north west of the block in the Western Central sub-basin. G4/50-5 is targeting oil in Miocene sandstones and is estimated to contain mean prospective recoverable resources of 16 MMbo with access to hydrocarbon charge being identified as the key risk. Exploration success at Surin would open the play in the Western Central subbasin and de-risk the neighbouring Ayutthaya and Buriram prospects. G4/50-5 will be drilled to approximately 2,125 metres total vertical depth sub-sea using the Atwood Mako jack up rig and is expected to take around 10 days to reach target depth. On completion of the G4/50-5 well the rig will return to the Bravo platform to continue the development drilling campaign on the Bualuang field.

Spud of Ayutthaya Exploration Well

Salamander Energy plc announces the spud of an exploration well in Block G4/50, Gulf of Thailand targeting the Ayutthaya prospect. Ayutthaya is located in the Western Central sub-basin, some 7 km northeast of the recent Surin oil discovery. The well will target oil in Miocene sandstones and is estimated to contain mean prospective recoverable resources of 30 MMbo. The well will be drilled to approximately 2,350 metres total vertical depth sub-sea using the Atwood Mako jack up rig.

Surin Oil Discovery

Salamander Energy plc announces that the G4/50-5 exploration well, has discovered oil in the Surin prospect in the central portion of the Western sub-basin, Block G4/50, Gulf of Thailand. Oil was discovered in good quality Miocene fluvial sandstones in the primary N40 target zone over the interval 1,525 to 1,533 metres TVDSS. Wire-line logs and pressure data confirmed the presence of approximately 8 metres of oil pay. Oil samples recovered from the zone indicate a 31 degree API oil and mapping of the Surin fault block indicates between 15 and 20 metres of column height above the location of the well penetration. Further evaluation is required to determine the potential resource volume encountered in the Surin discovery. The well has been plugged and abandoned as an oil discovery. James Menzies, Chief Executive of Salamander, commented: "The discovery of oil in the Surin fault block, a 25 km step out from the Bualuang field, has proven the access to an oil charge in the Western Central sub-basin, which had been identified as a key risk pre-drill. Resource estimates for Surin are being assessed but this is clearly a positive step in de-risking the neighbouring prospects and in understanding the local petroleum system."

Bualuang Field Update

Salamander Energy announces that due to a damaged production riser, production from the Bualuang oil field has been temporarily shut-in. During bad weather conditions, the Rubicon Vantage FPSO drifted into the exclusion zone designed to protect the production infrastructure. The Vantage's mooring chains then came into contact with, and damaged, the production riser resulting in a small amount of oil being observed on the surface. Production was immediately halted and operations commenced to clean up the discharge, estimated to be approximately 20 barrels. The situation was contained and all oil was successfully dispersed within a five hour period. Further inspection work and repairs are underway. The FPSO owner has made arrangements for a new production riser to be fitted if required, which on current schedule would see production re-commence around 25th January 2014. Salamander does not anticipate that it will incur any significant repair costs. Development drilling is not impacted by these events and the Atwood Mako rig remains on the Bravo platform and is currently drilling the BB-02H well. Salamander will use the opportunity provided by this period of downtime to accelerate planned maintenance and has rescheduled some of the hook up work on the recently installed process modules. The new FSO, that will be installed later this year, will have a turret mooring system with 360 degree swivel capability with no need for an exclusion zone and hence the risk of this kind of incident being repeated will be removed. Despite the shut-in the Group's production forecast for 2014 remains unchanged with production expected to average between 13,000 and 16,000 boepd.

DRC 2011 offshore drilling campaign launched with Libwa 12

The shallow-draft Hercules H260 RIG arrived in DR Congo the 1st of September for a drilling campaign that is expected to last approximately six months. This is a major milestone for the DRC subsidiary, with the first offshore drilling operation since the Perenco takeover of the offshore operatorship in July 2004. The planned campaign will consist of three new wells, one re-entry and one heavy work-over. The first well, the challenging LIB-12 dual lateral well is being drilled to unlock the southern part of the Libwa field. The campaign will then continue with MIB-19, targeting attic oil in the mature Mibale field followed by an appraisal well in Misato (MIS-4), one re-entry (LUBI-1X) and a heavy workover in Libwa (LIB-11). It demonstrates Perenco's commitment to exploit offshore undeveloped oil reserves in difficult reservoirs. The wells' selection and the launch of this campaign are a direct consequence of the good teamwork between the subsidiary and the Headquarter support departments: Geosciences (London) and Drilling & Completion (Paris). The drilling campaign has been launched while the SW1 is still in work-over operation and with the addition of one onshore rig, three pulling units and a hydraulic frac set-up in simultaneous operation, resulting in the highest activity rate for the subsidiary since Perenco's arrival in DRC in 2001.

Signal Delivers Two Rigs On Schedule for Diamond Offshore

Signal International, L.L.P. announced the recent completion and return to service of two Diamond Offshore rigs, the Ocean Titan and the Ocean America. The LeTourneau Class 64 jackup, Ocean Titan, entered Signal’s East Pascagoula, Mississippi yard for modifications and repairs on 06 March 2009 and departed on 14 April 2009. Meanwhile, another Diamond rig, the eight-column semisubmersible Ocean America, was delivered 07 May 2009, two days ahead of schedule from Signal’s Dry Dock at Port Arthur, Texas undergoing periodic inspection procedures and customer-planned modifications. “Simultaneous performance of these two projects, one at dockside in Mississippi and the other on dry dock in Texas, demonstrates the wide geographic span of Signal’s GoM service capability, said Dick Marler, President and CEO of Signal. In the past we have also served Diamond and other drilling contractors with on-location work, which enables the rig owner to accomplish significant rig servicing work while experiencing little or no operational downtime”. In addition to ensuring compliance with ABS Special survey requirements for both rigs, upgrades and modifications to the Ocean Titan included installation of an extension to the BOP control system house, fabrication of two new life boat platforms and replacement of 500 feet of leg jet piping and hangers. Repairs and modifications to the Ocean America included tank cleaning; contain, blast and paint columns, deck box, tubular supports and derrick; removal and reinstallation of anchor chain for inspection; sacrificial anode installation and replacement of the drilling mud treatment system.

Keppel FELS delivers second jackup rig to Oro Negro early

Keppel FELS has delivered a second KFELS B Class jackup rig to offshore Mexican oil field services company, Integradora de Servicios Petroleros Oro Negro (Oro Negro). Named Laurus at Keppel FELS today, the rig was delivered eleven days early and with a perfect safety record. Laurus is the second of two high-specification jackup rigs that Keppel FELS has built for Oro Negro which will be chartered to PEMEX, Mexico's national oil company, for deployment in offshore Mexico. The first rig, Primus, was delivered in December last year.

Keppel FELS delivers jackup rig early to new Mexican customer

Keppel FELS has delivered Primus, a KFELS B Class jackup rig, to offshore Mexican oil field services company, Integradora de Servicios Petroleros Oro Negro (Oro Negro), seven days early and with a perfect safety record. Named earlier today at Keppel FELS, Primus was officially delivered on 16 November 2012. It is the first of two rigs by Keppel FELS for Oro Negro after the Mexican company purchased them from Jasper Investments. Primus is Oro Negro's first jackup rig and is suited for deployment in various parts of the world including the Gulf of Mexico.

Keppel FELS on track to deliver one of the world’s deepest jackup drilling rigs

Keppel FELS Ltd (Keppel FELS) is on track to deliver one of the world’s deepest drilling rigs, Deep Driller 2, to Sinvest ASA on time and within budget. Mr Lim Swee Say, Minister, Prime Minister’s Office and Deputy Secretary-General, National Trades Union Congress graced the christening ceremony as Guest-of-Honour. Other dignitaries included Mr Bjarne Skeie, Chairman of Sinvest ASA and Deep Drilling Group, owner of Deep Driller 2, and Mr Lim Chee Onn, Executive Chairman of Keppel Corporation. Built to the KFELS Super B Class design, Deep Driller 2 is an enhancement of the highly acclaimed KFELS B Class design. The rig has been customised to the owner’s specifications and marks another milestone in Keppel’s design and engineering capability. When delivered, Deep Driller 2 will be one of the world’s deepest drilling rigs, capable of drilling down to 35,000 feet. She will be contracted to Brunei Shell Petroleum Company for deployment in offshore Brunei Darussalam.

Keppel FELS delivers fourth Sinvest jackup drilling rig on time

Keppel FELS Limited (Keppel FELS) has delivered the jackup drilling rig, Deep Driller 6, to Sinvest AS (Sinvest), a subsidiary of Aban Singapore Pte Ltd (ASPL) on time and within budget. Deep Driller 6 is the fourth unit to be delivered in a series of five KFELS Super B Class rigs built for Sinvest. The fifth rig, Deep Driller 8, is on track for a timely delivery in the first quarter of 2009. The KFELS Super B Class design is one of the world’s deepest drilling rigs, with capabilities for drilling High Pressure, High Temperature wells up to 35,000 ft at 350 ft water depth.

'Hakuryu-12' to be shared by Inpex and CGX Energy

CGX Energy Inc. (CGX) alongside Teikoku Oil (Suriname) Co., Ltd, a wholly-owned subsidiary of Inpex Corporation (Inpex) have formed a rig sharing group and have announced that they have entered into a bindling letter of intent (LOI) with Japan Drilling Co., Ltd (JDC) for use of the ‘Hakuryu-12’ jackup drilling rig. The LOI forms the bassis of the definitive rig agreement between JDC and each of the members of the rig sharing group. The members of the Rig Sharing Group are required to enter into definitive rig agreements with JDC in order to reduce mobilization and demobilization costs. The ‘Hakuryu-12’ rig will be delivered to the rig sharing group in Trinidad between April 1st 2015 and May 1st 2015. The unit will be used to drill in either the Corentyne or Demerara licenses in Guyana for CGX and in block 31 in Suriname for Inpex. The length and value of the contract were not released.

EnQuest hire 'Atwood Mako' for Malaysia drilling

Atwood Oceanics (Atwood), has been awarded a new drilling contract for its ‘Atwood Mako’ jackup rig. According to the company’s fleet status report released on the 1st December 2014, EnQuest PLC has through its subsidiary EQ Petroleum Developments Malaysia SDN BHD has hired the rig for a two well drilling operation in Malaysia. The unit which recently completed a contract with Salamander Energy in Thailand, will remain idle in Malaysia until the contract begins on the 2nd January 2015. The dayrate for the new contract has been set at USD145,000. In other news, Atwood announced that it has retired the ‘Atwood Southern Cross’ semisub through the sale of the asset to a shipyard. The 38 year old unit has been cold stacked since completing its last contract with Audax Resources in 2010.

Atwood secures contract for 'Atwood Mako'

Atwood Oceanics, Inc. (“Atwood”) announced today that the company has secured a short term contract for its Atwood Mako jackup. The contract is for a period of 70 days and includes a priced option period. Atwood did not release details of the contractor or the country of operation, instead the company highlighted that the unit would continue to work in South East Asia, at a rate of USD155,000 a day. The unit will mobilise to its new location and begin the contract upon completion of its current contract with EnQuest in Malayisa.

Saudi Aramco cancels contract for 'Hercules 261'

Hercules Offshore, Inc. (“Hercules”) announced today that it has received a notice from Saudi Aramco terminating its drilling contract for the Hercules 261 jackup, effective March 27th, 2015. Hercules is in the process of seeking a basis for continuing the Hercules 261 contract. As previously disclosed, Hercules has been in discussions with Saudi Aramco about a possible rate reduction on the Hercules 262 and Hercules 266. The Company has not received a notice of termination from Saudi Aramco with respect to these rigs.

OSM launches newbuild jackup in Indonesia

OSM New Build Management (OSM) is pleased to announce that earlier this month OSM officially launched their first Jack Up Project (Hull no. L209) in the PaxOcean Graha Shipyard. Owned by Beijing Petrolor Oilfield Services Co.ltd, the Jack Up rig is based on a Gusto MSC CJ46 design and was built in the PaxOcean Graha shipyard. The vessel is classified under ABS and can operate up to a water depth of 375 feet. The expected delivery of this vessel is April 2015. OSM’s Douglas Dalli, Head of New Building Management, said: “We are delighted to be announcing this project launch with Beijing Petroler Oilfield Services. The launch of this Jack Up rig is a strong representation of OSM’s ability to execute in its core markets and will hopefully result in more like projects.”

'Impetus' jackup delivered to Integradora de Servicios Petroleros Oro Negro

Hull No. P2040 (IMPETUS), was successfully delivered on 22nd Jan 2015 to Integradora de Servicios Petroleros Oro Negro, S.A.P.I. de C.V. ("Oro Negro"). IMPETUS is the third in a series of six units of Pacific Class 400 high specification jack up drilling rigs ordered by Oro Negro. The naming ceremony of IMPETUS was held on 09th Jan 2015 in PPL Shipyard. The unit will now mobilise to Mexico, however, it is yet to be contracted for drilling services.

Hercules Offshore announces new contract for 'Hercules 260'

Hercules Offshore (“Hercules”) has announced that it has signed a five-year contract with a subsidiary of Eni S.p.A. (“Eni”) for use of the Hercules 260 in West Africa. The dayrate under the contract will range from a minimum of USD75,000 per day when the price of Brent crude oil is USD86 or less per barrel, to a maximum of USD125,000 per day when the price of Brent crude oil is USD125 or more per barrel. Contract commencement is expected in early April 2015. Costs for contract specific upgrades will be reimbursed by the operator. Hercules did not announce the country in which the unit will begin its contract. However, due its sudden start date, it is believed that the unit will begin operations in Gabon where the unit is currently located. Eni made a significant gas discovery in Gabon last year with the drilling of the Nyonie Deep well.

Hercules extends 'Hercules 261' contract for another month

Hercules Offshore, Inc. (“Hercules”) has announced that it has received a notice from Saudi Aramco extending the termination date of its drilling contract for the Hercules 261, to May 31st, 2015. This is the second termination date extension that Saudi Aramco has issued for the Hercules 261. Previously the contract was due to expire on the 27th March 2015 and then the 30th April 2015, following notice that Saudi Aramco gave Hercules in February 2015. As previously disclosed, we are in the process of seeking a basis for continuing the Hercules 261 contract.

Noble agrees to jackup rate reduction with Saudi Aramco

Noble Corporation (“Noble”) today released its updated fleet status and announced that the company reached an agreement with Saudi Aramco to reduce the operating dayrates for five jackup rigs. The dayrate reductions are effective from 1st January 2015 and run through the entirety of 2015 and will be applied over the remaining life of the existing contracts. The rigs in question are the Noble Scott Marks, Noble Roger Lewis, Noble Gene House, Noble Joe Beall and Noble Charles Copeland. The dayrates for the Noble Scott Marks and Noble Roger Lewis were reduced to USD169.5k whilst the remaining three jackup rates were reduced to USD65k. This announcement follows earlier agreements that Saudi Aramco negotiated with Rowan and Ensco for rate reductions in 2015.

Hercules agrees to rate reductions and Saudi Aramco cancels termination notice for 'Hercules 261'

Hercules Offshore, Inc. (“Hercules”) announced today it had received a notice from Saudi Aramco withdrawing its previously issued termination notice for the Hercules 261 jackup. Following the withdrawal of this termination notice, the Hercules 261 is now fully contracted up until September 2019. Meanwhile Hercules also announced that it has agreed to rate reductions for its three jackups currently contracted to Saudi Aramco; Hercules 261, Hercules 262 and Hercules 266. The rates for all three units will be reduced to USD67,000 and apply from the 1st January 2015. The rate reductions for the Hercules 261 and 262 run until 31st December 2016, whilst the Hercules 266 reduction will be applied for the remainder of the units contract which completes in November 2015.

Oro Negro reaches rate reduction deal with Pemex for four jackups

Integradora de Servicios Petroleros Oro Negro, S.A.P.O. de C.V. (“Oro Negro”) and Pemex-Exploración y Producción (“Pemex”) have agreed on terms for amending their outstanding charter leases for Oro Negro’s Primus, Laurus, Fortius, and Decus jackup rigs. The amendments provide that the daily rental rate payable to Oro Negro for each of the rigs will be reduced from approximately USD160,000 to USD 130,000, for the period June 1st, 2015 through May 31st, 2016. From and after June 1st, 2016, the daily rental rate will return to approximately USD160,000. In addition, the charter leases will each be extended by one year.

Ophir Energy begins new exploration campaign in Thailand

Ophir Energy Plc (“Ophir”) has announced that it has commenced a two well exploration drilling program in Block G4/50, in the western Gulf of Thailand with the spud of G4/50-10 exploration well on the Soy Siam prospect. The G4/50 Block partly surrounds Ophir’s producing Bualuang oil field and spans a series of Tertiary aged sub-basins in the western Gulf of Thailand. The two well program will test whether there is a working hydrocarbon system in one of these, the presently undrilled South Western Sub-Basin. The main play risk is considered to be charge, specifically source distribution and maturity. The Soy Siam Prospect comprises a single fault block which has potentially been charged from both the Bualuang and South Western Sub-Basins. The G4/50-10 well is targeting Miocene sandstones that are the age equivalent of the producing reservoirs in the Bualuang oil field, located 15 km to the north. The Soy Siam Prospect has 25 MMbo of mean prospective resource and a 21% chance of success. On completion of the G4/50-10 well, the rig will move to drill the Parichat South West (SW) prospect. The Emerald Driller jackup rig is being used for the G4/50 drilling programme. The estimated cost of the two well program is USD18 million and it is expected to take approximately 50 days to complete.

Oro Negro Signs Charter Agreement and Contract Extensions with PEMEX

On December 21, 2015, Perforadora Oro Negro, S. de R.L. de C.V. (“Oro Negro”) and Pemex Perforación y Servicios, ENS (“Pemex”) executed a new charter agreement for Oro Negro´s Impetus rig, for a period of 5 years with a day rate of USD$130,000.00. In addition, Oro Negro and Pemex Exploración y Producción signed amendments to the outstanding charter leases for Oro Negro’s rigs Primus, Laurus, and Fortius. The amendments provide a one year extension on the term on the contracts for each of the above mentioned rigs. Oro Negro expects to sign a similar one year extension for the Decus rig in the near term.

JDC has started the drilling operation using HAKURYU-12

The new jack-up rig "HAKURYU-12" departed from Singapore on March 17, and sailed around the Cape of Good Hope in South Africa. After the loading of materials and equipment necessary to the operation at Trinidad and Tobago, she finally arrived to offshore Suriname in South America on May 8. Afterwards, she started the drilling operation based on the contract with TOS on May 14.

Hercules Offshore, Inc. Announces Contract Extension for the Hercules 266

Hercules Offshore, Inc. (NASDAQ: HERO) announced today that it received a notice from Saudi Aramco extending the contract for the Hercules 266 to June 30, 2016. The dayrate for the Hercules 266 will remain at $63,650 per day through the term of the contract extension.

New Contract Award

Noble Corporation (NYSE: NE) announced the receipt of a letter of award from Venture Production plc (“Venture Production”) to enter into a contract with the Company for a new F&G JU-2000E enhanced premium jackup drilling rig to be constructed by China Shipbuilding & Offshore International Co., Ltd./Dalian Shipbuilding Industry Co., Ltd (“DSIC”) in Dalian, China. The Venture Production commitment, which has been approved by both companies’ Board of Directors, will have a contract term of two years at a dayrate of $210,000 per day. There are no extensions or options beyond the contract term. The Company estimates the cost of the rig will be approximately $190 million. Venture Production has informed the Company that it anticipates employing the rig in the North Sea. Mark Jackson, President and Chief Operating Officer of Noble Corporation, said, “We are pleased to continue to build on our long-term relationship with Venture Production with this contract.” This rig is the third heavy duty, harsh environment (HDHE) F&G JU-2000E, a high specification Friede & Goldman designed jackup, that the Company has scheduled to deliver to customers over the next three years. The Company has previously reported contracts with Shell E and P Offshore Services B.V. for the first two such newbuild jackups, to be named the Noble Roger Lewis and Noble Hans Deul. Each of these harsh environment jackups has a 75 foot cantilever reach, rated water depth of 400 feet, and rated drilling depth of 30,000 feet.

Pemex issues certificate of acceptance for Impetus

On May 29, 2016 Perforadora Oro Negro, S. de R.L. de C.V. (“Oro Negro”) completed the checklist for its Impetus rig and, consequently, Pemex Perforación y Servicios, EPS issued the certificate of acceptance for said rig to begin operations.

Vantage Drilling International Announces Acquisition

Vantage Drilling International ("Vantage"), announced today that its subsidiary, Vantage Drilling Africa, has acquired the Hercules 260, a Marathon LeTourneau Class jack-up drilling unit, from Hercules International Drilling, Ltd., a subsidiary of Hercules Offshore, Inc., for an undisclosed amount and has renamed the rig the Vantage 260. As part of the acquisition, Vantage Drilling Africa acquired a multi-year drilling contract with ENI Congo. Vantage is reactivating the Sapphire Driller, a Baker Marine Pacific Class 375 jack-up rig currently warm-stacked offshore of the Republic of Congo, and later this year will substitute it for the Vantage 260. Ihab Toma, Vantage's Chief Executive Officer, commented, "We are delighted to have completed this transaction and are happy to welcome the 260 team to Vantage. We look forward to continuing the excellent operations for ENI Congo."

KCA Deutag Disposal of Ben Loyal Jack-Up Drilling Unit

Leading global drilling and engineering contractor, KCA Deutag, today announces that it has sold its jack-up drilling unit, the Ben Loyal to Egyptian headquartered Advanced Energy Systems A.D.E.S. SAE for an undisclosed sum. Built in 1981 and acquired by KCA Deutag in 2005, the Ben Loyal's operational performance has been strong and until October of this year it had been continuously under contract in the Gulf of Mexico. The Friede & Goldman L-780 MOD II rig, which is due for a special periodic survey next year, is capable of drilling in water depths of 300ft. Norrie McKay, KCA Deutag CEO said: "The sale of the Ben Loyal is another important step for KCA Deutag as we continue to focus our growth strategy on our core businesses of premium rig services, specialist engineering and design, and land rig manufacturing."

Maersk Convincer takes over contract from Maersk Completer

Jack-up Maersk Convincer, currently finalising its five-yearly Special Period Survey (SPS) yard stay in Singapore, will be taking over a contract from its sister rig, the Maersk Completer, currently operating offshore Brunei. The Maersk Completer is on contract with Brunei Shell Petroleum, and has been since November 2008. Before long, the Rig is scheduled to have its five-yearly Special Periodic Survey (SPS) yard stay, which means that operations for Brunei Shell Petroleum would have to be suspended while Maersk Completer conducts the yard stay, resulting in a delay in the drilling programme of about 45-60 days. In order to limit impact to the customer’s drilling programme, and to reduce cost for both parties, Maersk Drilling is re-activating the warm-stacked Maersk Convincer, an identical Baker Marine 375ft jack-up. Maersk Convincer is currently finalising its own five-yearly SPS yard stay, and will be ready to leave for the field and take on the remainder of the work scope in August 2017. “Our number one priority is to deliver the safest and most efficient drilling operations to our customers. This also means limiting any interruptions to their programmes, resulting in costly delays. Therefore, following a close dialogue with Brunei Shell Petroleum, we have agreed to put Maersk Convincer in operation for the remainder of the contract,” says Peter Dansen, Vice President and Asset Manager for International Jack-Ups in Maersk Drilling. The current contract is scheduled to end in October 2018, however, Brunei Shell Petroleum have options to extend the contract up to a total of three years. Maersk Convincer will take over operations once Maersk Completer has finalised current batch drilling operations.