After we have discussed our results, we will have a question-and-answer session, during which that we ask that you please limit yourself to one question and one follow-up so that we can open the floor to as many people as possible. And with that, I will turn the meeting over to Larry.Lawrence Dickerson Thank you, and good morning. I have several topics I'm going to talk about this morning. First of which would be the moratorium and its ongoing continuing impact on Diamond Offshore. During the quarter, we have announced two relocations of rigs, which I believe are for the -- certainly, the Endeavor was the first, Confidence is the second. There's also been other announcements of modifications of contracts and various things from other drilling contractors. I think pretty much each company and each rig plays out differently, depending upon its circumstances and situations, so I'll give you a little color behind ours. The Endeavor, which was our first rig that we announced is relocating to Egypt. It was under contract to Devon. Devon sold all their offshore properties while advancing more plan and retain contract on the Ocean Endeavor. We expected I believe to work with some farm-outs and they were very keen to assist us in coming up with a plan where we could relocate the rig. I think we disclosed the terms of that. The general scheme was that between the day rates and when we receive from our contract in Egypt and the termination payment from Devon that will be placed in the same economic position as if we stayed in the Gulf of Mexico. We believe that we have that advantage of being able to preserve some U.S. jobs that we would also have a rig, a very good rig relocating to the Mediterranean, which is a good market and certainly has more certainty going forward than the U.S. market.
Subsequent to that, about a week later, we announced, although the rig actually left earlier, was a modification to the Ocean Confidence contract with Murphy. We have little over three months left with Murphy and agreed to build a job of theirs in the Congo in West Africa, where they would relocate the rig and then we committed to bring the rig back for a year under the original terms of the contract. At such point in time that the situation is almost cleared up. If there is time that host our arrival in our drilling in the Congo, then we will be free and will be responsible for chasing other work in West Africa. So we are pleased with that arrangement. There is less revenue coming to us than probably staying in the Gulf of Mexico, but we think that was a net win for everybody.Among our other rigs that are in the Gulf of Mexico are floaters, Ocean Voyager finished its series of oil subsequent to events of April 20 in moratorium, and that has now been cold-stacked. Saratoga was permitted to continue on. The Victory is also continuing on some production-related drilling. And the Ocean Monarch is our large rig with a big contract, which is still yet to be determined. The rig was assigned from its primary contract Anadarko to Cobalt. Cobalt had a certain commitment. And they're working through that commitment at which point in time, sometime in August, we would expect the rig to be returned to Anadarko. All that is still open. So that's the primary impact on our Floater business, our jackups. We've had mixed results. I'm seeing our customers being able to get permits. So we've had some impact there, but we've had less rigs there. Read the rest of this transcript for free on seekingalpha.com