North Atlantic Extends Rig Contract with Total
North Atlantic Drilling has been awarded a contract extension for the semi-submersible rig West Phoenix by Total E&P UK Limited.
The contract will commence mid-March 2016 and secure work for the unit through the end of August 2016. The total revenue potential for the contract extension is approximately $62 million.
"A portion of the $62 million will be paid during the currently anticipated idle period from the beginning of September 2015 to the middle of March 2016. The Company has the ability to market the rig for alternate work during this period," North Atlantic Drilling said in the press release.
As part of the agreement to extend the West Phoenix, North Atlantic has agreed to a dayrate reduction on the current contract effective from June 1, 2015 until its expected conclusion at the end of August 2015. This will result in a reduction to the remaining revenue potential of approximately $16 million.
Total will have the chance to market the rig for other alternate work during this seven month period.