Diamond Offshore Drilling, Inc. (NYSE:DO) today announced that the Company has received notifications of award for four drilling contracts from Petrobras in Brazil. The commitments for the four semisubmersible drilling rigs could generate combined maximum total revenue of approximately $2.3 billion, in addition to potential performance bonus payments, and represent 22 years of contract drilling backlog.
- The Ocean Worker received a six-year commitment that could earn maximum total revenue of approximately $591 million, in addition to a mobilization fee and a potential 10% performance bonus. The rig, which is currently working in Tobago on a six-month contract, is expected to begin work in Brazil in the third quarter of 2008.
- The Ocean Yatzy received a five-year commitment under which the unit could earn maximum total revenue of approximately $447 million, in addition to a potential 10% performance bonus, for work expected to continue until the fourth quarter of 2014.
- The Ocean Winner received a five-year commitment under which the rig could earn maximum total revenue of approximately $493 million, in addition to a potential 10% performance bonus, for work expected to continue until the first quarter of 2015.
- The Ocean Alliance received a six-year commitment under which the unit could earn maximum total revenue of approximately $748 million, in addition to a potential 15% performance bonus, for work expected to continue until the third quarter of 2015.
Diamond Offshore President and Chief Operating Officer, Larry Dickerson, commented: “We are pleased to build on our history of over 20 years’ service to Petrobras and the Brazilian oil industry and look forward to participating with Petrobras in their quest to increase Brazilian oil production.”
Diamond Offshore provides contract drilling services to the energy industry around the globe and is a leader in deepwater drilling. Maximum contract revenue as stated above assumes 100% rig utilization. Generally, rig utilization rates approach 95-98% during contracted periods; however, utilization rates can be adversely impacted by additional downtime due to unscheduled repairs, maintenance and weather. Additional information on Diamond Offshore Drilling, Inc. and access to the Company’s SEC filings is available on the Internet at www.diamondoffshore.com.
Statements in this press release may contain “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such statements may include, but are not limited to, statements concerning commitments, total revenues, backlog, future contracts and expected contract commencement dates. Such statements are inherently subject to a variety of risks and uncertainties that could cause actual results to differ materially from those anticipated or projected, including, among others, the risk that full rig utilization may not be achieved during a contract period, the risk that the fleet’s available days may be reduced by unscheduled downtime, the risk that these and other factors outside of the Company’s control may adversely impact the amount of profit realized from a contract, the risk that the markets for the Company’s services will not continue to improve, the risk that the Company’s market position may deteriorate, or the risk that the Company may not be able to participate fully in any future market improvements. A discussion of additional risk factors that could impact these areas and the Company’s overall business and financial performance can be found in the Company's reports and other filings with the Securities and Exchange Commission. These factors include, among others, general economic and business conditions, casualty losses, industry fleet capacity, changes in foreign and domestic oil and gas exploration and production activity, competition, changes in foreign, political, social and economic conditions, regulatory initiatives and compliance with governmental regulations, customer preferences and various other matters, many of which are beyond the Company’s control. Given these concerns, investors and analysts should not place undue reliance on forward-looking statements. Each forward-looking statement speaks only as of the date of this press release. The Company expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any forward-looking statement to reflect any change in the Company's expectations with regard thereto or any change in events, conditions or circumstances on which any forward-looking statement is based.
Director, Investor Relations
Les Van Dyke, 281-492-5370