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Petroleum industry

Reading & Bates Corporation Secures Contract for JACK BATES

Strategic Insights

— 1 min read

Reading & Bates Corporation has announced that its fourth-generation semisubmersible JACK BATES has been awarded a contract by Mobil North Sea Limited for the drilling of three wells in the UK sector of the North Atlantic. The contract value is estimated at approximately $32 million, with an additional $12.5 million for mobilization, equipment upgrades, and shipyard time. The JACK BATES will be utilized on Mobil's Tranche 6 area in Blocks 213 and 214, working in water depths up to 4500 feet.

Key Takeaways:

  • The contract is for a nine-month period, commencing no later than April 1997, with an option to extend the contract period to 18 months.
  • The JACK BATES will be utilized on Mobil's Tranche 6 area in Blocks 213 and 214, working in water depths up to 4500 feet.
  • The contract value is estimated at approximately $32 million, with an additional $12.5 million for mobilization, equipment upgrades, and shipyard time.
  • The contract marks a significant win for Reading & Bates in the deepwater drilling market.
  • Paul B. Loyd Jr., chairman, president, and CEO of Reading & Bates, stated that the company's operational expertise, combined with the JACK BATES's capabilities, made it the right combination to take on this formidable deepwater drilling project.
  • Reading & Bates believes that this contract offers insight into the earnings power of the BATES relative to the rest of the high-specification fleet when operated in the environment for which it was designed.
  • The company expects to achieve strongly improving rates for its other two fourth-generation semis when their contracts roll over in the fourth quarter of 1996.
  • Reading & Bates's core fleet utilization currently stands at 100 percent, with a term commitment expected shortly for its one idle standard jackup in India.

Statistics:

  • The contract duration is approximately nine months, with an option to extend to 18 months.
  • The contract value is estimated at approximately $32 million, with an additional $12.5 million for mobilization, equipment upgrades, and shipyard time.
  • The estimated total contract value is $44.5 million.
  • The JACK BATES will work in water depths up to 4500 feet.
  • The company's core fleet utilization currently stands at 100 percent.

Sources:

  • /PRNewswire/ - July 13 /PRNewswire/ --
  • "Charles R. Ofner, Reading & Bates, 713-496-5000" - referenced contact number.

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