Diamond Offshore scores $360m in rig deals

Houston-based Diamond Offshore Drilling has won a contract with Serica Energy for one of its semi-submersible rigs and an extension from BP for drillship work.The offshore driller won a contract with Serica Energy to use the 1983-built jack-up semi-submersible Ocean Patriot for two plug and abandonment wells in the UK part of the North Sea.

The program is estimated to begin in March 2024 and continue for approximately 60 days. The contract represents over $10m of additional backlog, excluding mobilization.Recently, the company won a 35-well plug and abandonment contract for the rig with TAQA Bratani Limited, also in the UK, with an estimated duration of three years. It has 17 additional priced option wells and will last around 12 months.

The second deal is a two-year contract extension with a subsidiary of BP in the US Gulf of Mexico for the 2015-built Ocean BlackLion drillship. It will start in September 2024 in direct continuation of the rig’s current contract. This contract extension represents approximately $350m of additional backlog.

According to the company’s most recent fleet status report, the drillship has been working for BP since September 2022. Diamond Offshore’s backlog stands at $1.66bn plus the two contracts for the Ocean Patriot, as well as deals for the Ocean BlackRhino and Ocean BlackLion.