Aquadrill LLC has entered into a charter hire agreement with a subsidiary of Diamond Offshore Drilling, Inc. (the “Manager”) to provide the Auriga for a one year drilling contract plus a one year mutually agreed option for operations in the US Gulf of Mexico. The charter hire agreement will be extended if the parties mutually agree to exercise the optional term.
The terms of the charter hire agreement are consistent with the current management services agreements in place between the Company and the Manager. Further, the resulting financial benefits are as if the Company had entered into the drilling contract directly.
Under the drilling contract associated with the charter hire agreement, the Auriga will be upgraded with managed pressure drilling capabilities.
The total contract value for the firm portion of the drilling contract is expected to be $94 million and commencement is expected in February 2022 following reactivation, upgrade, contract preparation and system integration testing.
