Petrobras terminates two Diamond contracts

Brazil

RIO DE JANEIRO, November 2, 2015 – State-owned Petrobras has decided to terminate its contracts for two of Diamond Offshore Drilling’s units before the expiration date and extend a contract on another rig, the offshore drilling contractor announced Monday in its third quarter filings.

The contracts ended for the two vessels, the semi-submersible Ocean Alliance and drillship Ocean Clipper, despite Diamond posting profit. The company’s third quarter profits stood at $136.42 million, compared with $52.65 million during the same period of 2014.

The terminations will result in a backlog of $91 million. The Ocean Alliance will be taken out of service, while the Ocean Clipper will go to the scrapyard.

Petrobras will extend its contract with the Diamond semi-submersible Ocean Courage until mid-2020 at a dayrate of $380,000.

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