Rowan Companies, Inc. announced today that it has been awarded term drilling contracts for two Class 116-C jack-up drilling rigs to begin operating offshore Qatar in late 2006 or early 2007.
Each contract is for a two-year term and contains an option for one additional year. Each rig is currently under contract in the Gulf of Mexico. The relocation of the two rigs to the Middle East will begin late in the third quarter and should be completed by the end of the year. Rowan estimates that revenues from the two contracts over the two-year term will be between $278 million and $293 million, depending upon when drilling operations begin.
Danny McNease, Chairman and Chief Executive Officer, commented, "We are pleased to expand our share of the growing Middle East drilling market. These term contracts offer revenues and earnings visibility that is not currently available in the Gulf of Mexico market and assist us in achieving our goal to geographically diversify our drilling fleet. Rowan will continue to aggressively pursue contracts throughout the world that provide the best opportunities for long-term returns."