Houston-based Rowan Companies has taken a $96m cash payment from Cobalt International Energy in exchange for amendments to the contract for drillship Rowan Reliance.
.The contract was scheduled through to February 1, 2018 but will now have a provision to be terminated as early as March 31, 2017. Cobalt will continue to pay the same day rate of $582,000, however if it decides to keep the vessel beyond the March 2017 termination date, then the rate reduces to $262,000.
Cobalt has also committed to using Rowan as its exclusive provider of drilling services for the next five years.
Tom Burke, president & CEO of Rowan, commented: “With the cash payments from Cobalt, we will further strengthen our balance sheet, which will provide added flexibility as we review opportunities in this down market. We deeply value Cobalt as a client and we appreciate Cobalt’s faith in Rowan as evidenced by the commitment to use Rowan as its exclusive provider of drilling services for the next five years.”
Rowan has a fleet of 27 jackup rigs and four drillships.
