Ocean Rig UDW announces new drilling contracts, increased contract backlog
Ocean Rig UDW (ORIG) announced that it has signed a new drilling contract with Statoil (STO), for a one-well drilling program offshore Tanzania. The contract is expected to commence in Q1 2018, to be performed by the Ocean Rig Poseidon. In addition, Lundin Norway AS has declared their fifth option to extend the existing contract of the Leiv Eiriksson, which is now expected to have firm employment secured until March 2018. Ocean Rig has granted Lundin two additional options to drill further wells in the future. Should Lundin exercise its remaining seven one-well options, the rig could be employed until the middle of 2019. As a result, the company has increased its estimated contract backlog(1) by approximately $20M.