Jack-Up Rig Rates Show No Signs of Letdown with Latest Contract from Glencore

Jack-up rig Atwood Aurora, image: Atwood

For those analysts who were predicting jack-up day rates to remain flat for the forseeable future, international offshore drilling contractor, Atwood Oceanic (NYSE: ATW), is bucking the apparent trend.

Glencore Exploration Cameroon Ltd. has just awarded the jack-up rig, Atwood Aurora, a 3-well, 200+ day contract  to provide drilling services offshore Cameroon at a day rate of $155,000 per day.

According to a Q1 2012 financial report, this dayrate of $155k per day is $10k more than the average day rate for Atwood’s competitor, Rowan, operating in the middle east, and $37k per day more than rigs operating in the US Gulf of Mexico.

Contract commencement is expected in February 2013 in direct continuation of the two well contract with Bowleven PLC. With the award of this contract, the firm contractual commitment for the Atwood Aurora is expected to extend to August 2013.

Atwood currently owns 11 mobile offshore drilling units operating in the United States Gulf of Mexico, South America, the Mediterranean Sea, West Africa, southeast Asia and Australia, and is constructing two ultra-deepwater drillships and three high-specification jackups for deliveries in 2012, 2013 and 2014.

The company was founded in 1968 and is headquartered in Houston, Texas.

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