Diamond secures over $50 million backlog with new North Sea extension

Offshore drilling contractor Diamond Offshore has been awarded a contract extension for one of its semi-submersible rigs. During the fourth quarter of 2019, Diamond managed to narrow its loss on the back of higher revenues despite lower dayrates when compared to 4Q 2018. 

Ocean Patriot
Ocean Patriot rig; Source: Diamond

During 2019, the company secured $620 million of backlog, including over $50 million secured in the fourth quarter related to a 12-month extension for the Ocean Patriot in the North Sea.

Namely, the 1982-built Ocean Patriot semi-submersible has been awarded a term extension with Apache in the UK North Sea. Under the extension, the rig’s contract is scheduled to end in early June 2021.

As of January 1, 2020, the company’s total contracted backlog was $1.6 billion, excluding approximately a $100 million margin commitment from one of the company’s customers.

Furthermore, Diamond said that its Ocean BlackHawk drillship will start operations offshore Senegal for Woodside in 2Q 2022 and end in 2Q 2023. The rig was previosuly expected to start Senegeal operations in 1Q 2022 and end in 1Q 2023. The contract with Woodside was agreed in April 2019.

The Ocean BlackHawk is currently working for Oxy in the U.S. Gulf of Mexico.

In a quarterly report on Monday, Diamond said that its revenues increased to $276.4 million in the fourth quarter of 2019 from $232.5 million in the corresponding period of 2018.

The company’s net loss narrowed to $74.8 million from a loss of $79.2 million in 4Q 2018.

Diamond’s average dayrate in 4Q 2019 dropped to $264,000 from $315,000 in the fourth quarter of 2018, but utilization increased t0 59% from 46% in 4Q 2018.

Offshore Energy Today Staff


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