Sonat Offshore Drilling Secures Contracts from Shell for Deep-Water Semisubmersibles

Sonat Offshore Drilling Inc. has announced that Shell Offshore Inc. has awarded contracts to two of its fourth-generation, deep-water semisubmersibles, the Sonat Richardson and Sonat Rather. These contracts are expected to generate revenue in excess of $114 million, with the Richardson contracted for up to five years and the Rather for up to two years. Both rigs are currently working for Shell in the deep-water U.S. Gulf of Mexico and are expected to be utilized within this market to facilitate development of Shell's extensive inventory of deep-water projects.

Key Takeaways:

Sonat Offshore Drilling has secured contracts from Shell for two deep-water semisubmersibles, the Sonat Richardson and Sonat Rather, with the Richardson contracted for up to five years and the Rather for up to two years.
The guaranteed term of the contracts is expected to generate revenue in excess of $114 million.
The contracts are evidence of a developing trend among operators to secure the world's highest specification rigs for longer periods.
The Sonat Richardson and Sonat Rather are among the most advanced deep-water semisubmersibles available in the industry and will be utilized in the deep-water U.S. Gulf of Mexico.
The contracts demonstrate Shell's commitment to the exploration and development of oil and gas prospects in the deep-water U.S. Gulf of Mexico.

Statistics:

Revenue generated by the guaranteed term of the contracts: $114 million.
Length of contract for the Sonat Richardson: up to five years.
Length of contract for the Sonat Rather: up to two years.
Period of time in which the Sonat Richardson will be contracted: February 1996 - February 2001.
Period of time in which the Sonat Rather will be contracted: mid-1996 - mid-1998.

Sources:

PR Newswire, "Sonat Offshore Drilling Inc. Announces Shell Offshore Inc. Contracts", October 18, 1995.
Sonat Offshore Drilling Inc. press release.