Songa purchases Deepsea Delta drilling rig

Uchenna Izundu
International Editor

LONDON, June 18 -- Songa Offshore ASA will buy from Odfjell Drilling the Deepsea Delta third generation semisubmersible drilling rig for $428.5 million.

Deepsea Delta was built in 1981 at Rauma Repola and is an Ocean Ranger design. Songa said the rig had been refurbished, and it can operate in water 1,500 ft deep with a 12 point mooring system. The rig could be upgraded to operate in water as deep as 3,000 m.

Deepsea Delta is under contract with StatoilHydro Petroleum ASA until the end of February 2009. However, Odfjell Offshore, a company within the Odfjell Drilling Group, will operate the rig for the two outstanding contracts it holds with Revus Energy ASA and Det norske oljeselskap ASA, which will end in 2012. Odfjell Drilling Group will enjoy a management fee equal to 5% of actual day rate achieved.

Statoil is paying $170,000 as the day rate for its contract, and when Revus Energy and Det norske oljeselskap take over, they will pay day rates of $435,000 plus cost escalation clauses.

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