Ocean Rig gets $652 million LOA for drillship

Ocean Rig UDW Inc. (NASDAQ: ORIG), which is majority owned by Dry Ships, Inc.(NASDAQ: DRYS), reports that it has received a Letter of Award (LOA) for its ultra deepwater drillship “Ocean Rig Olympia,” from a major oil company.

The LOA is for a three year contract for drilling offshore West Africa, with an estimated backlog of approximately $652 million. The LOA is subject to completion of definitive documentation and receipt of regulatory approvals. The contract is expected to commence in direct continuation of the Ocean Rig Olympia’s existing contract in West Africa. The customer would have the option to extend the contract for two periods of one year each, with the first option exercisable within one year from the commencement date under the drilling contract, and the second option exercisable within one year after the date of exercise of the first option. With this latest fixture, says Ocean Rig, it no longer has any rigs available in 2012.

April 9, 2012