Pride International Extends Rig Contracts

Pride North America gets a new deal.
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Contract drilling company

Pride International

(PDE)

said Monday that it reached an agreement to extend its contract for its deepwater semisubmersible Pride North America.

The Houston-based company said that the three-year contract for the rig, now operating offshore Egypt, includes a fixed daily rate of $443,000. For the third year, adjustment up to 10%, based on dayrates for similar rigs during the fourth quarter 2009, is stipulated.

A separate five year agreement was also announced for another four rigs offshore Brazil, with a daily rate of $295,000 each for two deepwater semisubmersibles, $245,000 for one midwater semisubmersible and $165,000 for another midwater submersible. These rates are inclusive of performance bonuses varying from 10% to 18%, the company said.

Expected aggregate dayrate revenues under these agreements total about $2.1 billion, with an addition of around $200 million of performance bonus opportunities.

The offshore Egypt contract is expected to begin first quarter 2008 while the Brazil contracts would begin on expiry of existing contracts at different dates in 2007 and 2008.

"We are pleased to execute contracts for these five rigs, which expand our relationships with two of our most significant customers, who are leading participants in the deepwater market. These agreements increase our company-wide backlog to approximately $5 billion, provide substantial revenue visibility into the next decade, and further fuel our long-term growth ambition," the company said.

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