Diamond Offshore to modify contract for Ocean Confidence

Company News - July 28, 2000

| More
Diamond Offshore Drilling has announced that an agreement has been reached with a subsidiary of BP Amoco (BP) which provides for a modification to the contract covering the Ocean Confidence.

The modification provides for an extension of the delivery date from 01 July to 01 December 2000. The extension will allow Diamond Offshore additional time to complete and test the rig for performance in waters of up to 7,500ft.

Diamond Offshore will accrue a penalty based upon the delivery date of the rig and has agreed to accrue an additional obligation to BP for certain types of downtime, which could occur during the first two wells of the drilling contract.

These accruals would incrementally reduce revenue payments from BP to Diamond Offshore during the five-year contract term of the Ocean Confidence.

The company currently expects the Ocean Confidence to be delivered by September 30, 2000. Based upon the expected delivery date, future revenue would be reduced by approximately $3.6 million.Should the delivery occur on December 1, 2000, the maximum such reduction would be approximately $6.1 million.

More articles from this category

More news


Product Guide

News Letter

Fill in your name, company and e-mail address below for our bi-weekly newsletter.



Powered by MARIS.

Subscribe to Offshore Shipping News Online RSS

Follow Offshore Shipping News Online on Twitter

Subscribe to email updates




Myanmar Offshore Congress 2014
25-26 September 2014
Myanmar, Yangon.

Offshore Marine Crewing
01-02 October 2014
Norway, Oslo.

FPSO Training Course Amsterdam
06-08 October 2014
Netherlands, Amsterdam.

Kuwait Oil and Gas Show and Confernce
12-15 October 2014
Kuwait, Kuwait.

Myanmar- Oil and Gas 2014
15-17 October 2014
Myanmar, Yangon.

More events