HOUSTON, June 25, 2014 /PRNewswire/ -- Rowan
Companies plc ("Rowan" or the "Company") (NYSE: RDC) announced
today that its monthly report of drilling rig status and contract
information has been updated as of June
25, 2014. The report titled "Monthly Fleet Status
Report" can be found on the Company's website at
www.rowancompanies.com.
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Notable events in the current report include:
- Rowan Relentless: Entered into a two-year
contract with Freeport-McMoRan Oil & Gas LLC, a subsidiary of
Freeport-McMoRan Copper & Gold Inc. (NYSE: FCX), that will add
approximately $425 million to Rowan's
current contract backlog. The drillship is expected to be
delivered at the end of March 2015
and operate in the U.S. Gulf of
Mexico starting early third quarter 2015. The Rowan
Relentless is the fourth and final drillship in Rowan's current
construction program. With the award of this contract, all
four of the Company's ultra-deepwater drillships are now under
long-term contracts.
- Rowan Renaissance: Commenced operations on
April 22, 2014. Rig experienced
approximately 17 days off rate time during 2Q 2014 for previously
disclosed issues with the subsea systems. This has been
corrected and similar issues with the remaining drillships are not
anticipated. In addition, expected approximately 24 days off
rate time during 2Q/3Q 2014 for previously planned commissioning of
late arriving equipment.
- Rowan Viking: Reduced 2Q/3Q 2014 off rate
time by 23 days to 107 days for previously schedule inspections and
equipment modification. Rig is expected to return to service
in mid-August 2014 after entering the
shipyard in May 2014.
- Gorilla VI: Increased shipyard off rate
time by 31 days during 3Q 2014. Rig is currently expected to
return to service at the end of July
2014.
- Gorilla IV: Awarded a one-well contract
estimated at 40-45 days with Fieldwood Energy in the Gulf of Mexico which commenced mid-June 2014 at $125,000 per day, below the previous day rate of
$180,000. Rig was idle for 19
days during 2Q 2014 prior to commencing operations with its current
customer.
- Cecil
Provine: Previously scheduled off rate time
for repairs and inspections increased by 14 days to 35 days and
moved to 2Q 2014 from 3Q 2014.
For the second quarter and full-year of 2014, the Company
expects jack-up out-of-service time to be approximately 10% and
7-9%, respectively. No operational downtime is included in
projected out-of-service days, but the Company estimates jack-up
operational downtime to account for approximately 2.5% of
in-service days in current and future quarters. Except for
the out-of-service days specified in the Monthly Fleet Status
Report for the Rowan Renaissance, the Company does not
currently expect any further drillship out-of-service days in 2014,
and continues to expect operational downtime to be approximately 5%
after a break-in period of approximately six months up to one year
when operational downtime could be somewhat higher.
Out-of-service days include days for which no revenues are
recognized other than operational downtime and cold-stacked
days. The Company may be compensated for certain
out-of-service days, such as for shipyard stays or for transit
periods preceding a contract. However, recognition of any
such compensation received is deferred and recognized over the
period of drilling operations. Operational downtime is when a
rig is under contract and unable to conduct planned operations due
to equipment breakdowns or procedural failures.
Unless otherwise indicated, all day rates on the fleet status
include estimated amortization of contract
mobilization/modification revenues. However, day rates
exclude approximately $20-$30 million
of other miscellaneous aggregate annual revenue the Company
receives during rig operations. Day rates also exclude
rebillable revenues which are equally offset by drilling
expenses.
This summary is provided as a courtesy and is not intended to
replace a detailed review of the Monthly Fleet Status Report.
While the Company has attempted to include items it believes are
significant, we encourage you to review the Monthly Fleet Status
Report in detail.
Rowan Companies plc is a global provider of international and
domestic contract drilling services in the ultra-deepwater and
shallow water jack-up market with a fleet of 34 offshore drilling
units, including four ultra-deepwater drillships, three of which
are currently under construction, and 30 jack-up rigs, 19 of which
are rated high-specification. The Company's fleet is located
worldwide, including West Africa,
the Middle East, the North Sea,
Trinidad, Southeast Asia and the Gulf of Mexico.
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.rowancompanies.com.
Statements herein that are not historical facts are forward
looking statements within the meaning of the Private Securities
Litigation Reform Act of 1995, including, without limitation,
statements as to the expectations, beliefs and future expected
business, financial performance and prospects of the Company. These
forward-looking statements are based on our current expectations
and are subject to certain risks, assumptions, trends and
uncertainties that could cause actual results to differ materially
from those indicated by the forward-looking statements. Among
the factors that could cause actual results to differ materially
include oil and natural gas prices, the level of offshore
expenditures by energy companies, variations in energy demand,
changes in day rates, cancellation by our customers of drilling
contracts, letter agreements or letters of intent or the exercise
of early termination provisions, risks associated with fixed cost
drilling operations, cost overruns or delays on shipyard repair,
construction or transportation of drilling units, maintenance and
repair costs, costs or delays for conversion or upgrade projects,
operating hazards and equipment failure, risks of collision and
damage, casualty losses and limitations on insurance coverage,
customer credit and risk of customer bankruptcy, conditions in the
general economy and energy industry, weather conditions and severe
weather in the Company's operating areas, increasing complexity and
costs of compliance with environmental and other laws and
regulations, changes in tax laws and interpretations by taxing
authorities, civil unrest and instability, terrorism and
hostilities in our areas of operations that may result in loss or
seizure of assets, the outcome of disputes and legal proceedings,
effects of the change in our corporate structure, and other risks
disclosed in the Company's filings with the U.S. Securities and
Exchange Commission. Each forward-looking statement speaks
only as of the date hereof, and the Company expressly disclaims any
obligation to update or revise any forward-looking statements,
except as required by law.
SOURCE Rowan Companies plc