Ocean Rig Signs 6-Year Contract for New Skyros Drillship

Saipem 10K drillship
Saipem 10k drillship, image: Saipem

Deepwater driller Ocean Rig UDW Inc. (NASDAQ: ORIG) has announced the signing of a Letter of Award for its ultra deepwater newbuild drillship Ocean Rig Skyros for a six year contract with an undisclosed energy company offshore West Africa.

According to Ocean Rig, this contract adds $1.3 billion to their company’s current backlog.

This contract will commence immediately following a 5 well, 275 day minimum contract with Total E&P which was previously announced in June.

The Ocean Rig Skyros is expected to be delivered from Samsung Heavy Industries in October 2013.

As of today’s announcement, Ocean Rig’s total contracted backlog (including LOAs) stands at about $6.1 billion, primarily with investment grade or strong counterparties.