Asia

AOD clinches two additional contracts with Saudi Aramco

Bangkok: Thoresen Thai Agencies announced today that Asia Offshore Drilling, an associate company of Mermaid Maritime, has concluded two more contracts with Saudi Aramco worth up to $462m.

The contracts with Saudi Aramco mobilise AOD’s second and third new-build jack-up rigs, AOR-2 and AOR-3, to Saudi Arabia to provide drilling services for a minimum of three years plus a one-year option. The potential revenues for the three-year period for both rigs are approximately $394m as well as a cumulative mobilisation fee of $68m. The rigs are currently under construction at Keppel FELS in Singapore, with scheduled delivery dates in April and July 2013, respectively.
The announcement follows a similar deal concluded in October 2012, also with Saudi Aramco for the first of AOD’s new-build jack-up rigs, AOR-1.

“The size of these contracts reaffirms the company’s view that the oil and gas services sector indeed remains in a cyclical upturn,” said Chalermchai Mahagitsiri, executive vice chairman of TTA and Mermaid’s acting CEO.“All three of AOD’s rigs, which were locked in at advantageous prices during a relative low point in the industry cycle, will now be able to reap the rewards of what looks to be a multi-year boom that has seen modern, high specification jack-up rigs enjoy up to 100% utilisation.”  [18/03/13]

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