North Atlantic Drilling has been awarded a contract extension for the semi-submersible rig West Phoenix by Total E&P UK. The extension will become effective mid-March 2016.
The contract extension will secure work for the rig through the end of August 2016. According to North Atlantic Drilling, the total revenue potential for the contract extension is approximately $62 million.
A portion of the revenue will be paid during the currently expected idle period from the beginning of September 2015 to the middle of March 2016, during which the company has the ability to market the rig for alternate work.
As part of the agreement to extend the West Phoenix, North Atlantic Drilling has agreed to a dayrate reduction on the current contract effective from June 1, 2015 until its expected conclusion at the end of August 2015, resulting in a reduction to the remaining revenue potential of approximately $16 million, the company said in the press release.