Diamond Offshore Moving Gulf Rig To Egypt

By Houston Business Journal

Diamond Offshore Drilling Inc. is pulling its Ocean Endeavor rig out the Gulf of Mexico and shifting it to Egypt.

The Houston-based contract drilling services company has been awarded a contract from Burullus Gas Co. SAE valued at about $100 million, which includes a $31 million early termination fee paid by the previous operator of the rig.

The contract will end on June 30, 2011, according to Diamond Offshore (NYSE: DO).

⿿With new contracting severely restricted in the Gulf as a result of the uncertainties surrounding the offshore drilling moratorium, we are actively seeking international opportunities to keep our rigs fully employed,⿝ company President and chief executive officer Larry Dickerson said in a statement. ⿿We greatly regret the loss of U.S. jobs that will result from this rig relocation.⿝

Also this week, Diamond Offshore sold its 350-ft. high-specification jack-up Ocean Shield to London-based Ensco plc. for $186 million. The Shield is currently working under a term contract for Houston-based Apache Corp. (NYSE: APA) in Australia, which Ensco will assume.

Copyright 2010 American City Business Journals

http://houston.bizjournals.com/houston/stories/2010/07/05/daily41.html?ana=thestreet

Copyright bizjournals.com 2010

More from Commodities

Watch This If You're Wondering How Much Gold to Have and When to Sell

Watch This If You're Wondering How Much Gold to Have and When to Sell

How Can Gold Continue This Upward Momentum?

How Can Gold Continue This Upward Momentum?

Week Ahead: Investors Keep Economy in Check as Trade, North Korea Talks in Limbo

Week Ahead: Investors Keep Economy in Check as Trade, North Korea Talks in Limbo

Oil Rally Steadies Even as Potential Supply Disruptions Persist

Oil Rally Steadies Even as Potential Supply Disruptions Persist

The Outlook for Gold Prices Looks Awful Even With 10-Year Yields Above 3%

The Outlook for Gold Prices Looks Awful Even With 10-Year Yields Above 3%