North Atlantic Drilling (NADL) has been awarded a contract extension for the semisubmersible rig West Phoenix by Total E&P UK Ltd. The contract, which begins in mid-March 2016, secures work for the unit through the end of August 2016, NADL said in a news release.
The total revenue potential for the contract extension is about $62 million.
A portion of the $62 million will be paid during the currently anticipated idle period from the beginning of September 2015 to the middle of March 2016, according to NADL, noting the company has the ability to market the rig for alternate work during this period.
As part of the agreement to extend the West Phoenix, the company has agreed to a day-rate reduction on the current contract effective from June 1, 2015,until its expected conclusion at the end of August 2015, resulting in a reduction to the remaining revenue potential of approximately $16 million, the release said.
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