Provides drilling contract update on Energy Searcher
HOUSTON, Aug. 25 /PRNewswire-FirstCall/ -- Northern Offshore, Ltd. (Oslo
Bors: NOF.OL) today announced that it has entered into a drilling contract
with AGR Peak Well Management Limited, a subsidiary of AGR Group ASA (Oslo
Bors: AGR.OL) for the use of the semisubmersible GSF Arctic II in the North
Sea. As previously announced, Northern Offshore has entered into an agreement
with an affiliate of Transocean, Inc. to acquire the rig and expects to close
on the rig purchase in the fourth quarter of 2008. Following the closing, the
rig will be renamed the Energy Atlas.
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The contract is for a period of one year and has a contract value of
approximately US$155 million. It is anticipated that commencement will occur
near year end 2008 and follow in direct continuation of the rig's current
contract backlog after a brief handover period from Transocean. The contract
is subject to customary customer rig acceptance and regulatory approvals.
Marion Woolie, Northern Offshore president and CEO, said, 'This agreement
with AGR is an important step in realizing the value we see in the recently
announced acquisition of two semisubmersibles from Transocean. It also
represents a cornerstone in building the Company's presence in the North Sea,
a core operating region for the company.'
The company also reported that a 145-day commitment it had entered into
for the Energy Searcher to begin in mid-July has been terminated as a result
of the counterparty's inability to deliver the required financial guarantees.
'It is disappointing,' Mr. Woolie said, 'that the Searcher will experience
some idle time in the third and possibly fourth quarters as a result of this
development. That said, demand is robust and there are a number of
opportunities for the rig in the near future.'
Northern Offshore, Ltd. is a Bermuda holding company which operates
offshore oil and gas production and drilling vessels deployed around the
world. The Company's recently updated fleet consists of one floating
production facility, and five drilling units (a drillship, a semisubmersible
and three jackup drilling rigs). Additionally, the Company recently announced
an agreement to acquire two North Sea-based semisubmersible drilling rigs. The
Northern Offshore fleet operates in various markets including the North Sea,
the Indian Ocean, offshore Russia and Southeast Asia.
For further information, please contact:
Michael Dawson
713-739-7686
SOURCE Northern Offshore, Ltd.
