HOUSTON, Sept. 15, 2016 /PRNewswire/ -- Rowan
Companies plc (NYSE: RDC) today announced an amendment to its
drilling contract with Cobalt International Energy, L.P.,
regarding the drillship Rowan Reliance, which was scheduled to
conclude on February 1, 2018.
The amendment provides that Rowan will receive cash payments
totaling approximately $96 million,
that the rig remains at its current day rate of approximately
$582,000 and that the drilling
contract may be terminated as early as March
31, 2017. In addition, if Cobalt continues its
operations with the Rowan Reliance after March 31, 2017, the day rate will be reduced to
approximately $262,000 per day for
the remaining operating days. Cobalt also committed to use
Rowan as its exclusive provider of global drilling services for a
period of five years.
Tom Burke, President & CEO of
Rowan, commented: "With the cash payments from Cobalt, we will
further strengthen our balance sheet, which will provide added
flexibility as we review opportunities in this down market.
We deeply value Cobalt as a client and we appreciate Cobalt's faith
in Rowan as evidenced by the commitment to use Rowan as its
exclusive provider of drilling services for the next five
years."
Rowan is a global provider of contract drilling services with a
fleet of 31 mobile offshore drilling units, composed of 27
self-elevating jack-up rigs and four ultra-deepwater
drillships. The Company's fleet operates worldwide, including
the United States Gulf of Mexico, the United Kingdom and Norwegian sectors of the
North Sea, the Middle East, and
Central and South America. The Company's Class A Ordinary
Shares are traded on the New York Stock Exchange under the symbol
"RDC." For more information on the Company, please visit
www.rowan.com.
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SOURCE Rowan Companies plc