GlobalSantaFe, BHP agree to extend rig contracts

Nov. 13, 2006
GlobalSantaFe Corp. has signed agreements with BHP Billiton Ltd. to extend the contracts on two ultradeepwater drilling rigs for additional 4-year terms. The rigs currently are operating in the Gulf of Mexico.

By OGJ editors
HOUSTON, Nov. 13 -- GlobalSantaFe Corp. has signed agreements with BHP Billiton Ltd. to extend the contracts on two ultradeepwater drilling rigs for additional 4-year terms. The rigs currently are operating in the Gulf of Mexico.

The combined total value of the contracts is about $1.5 billion.

The GSF Development Driller I semisubmersible is scheduled to start work under its contract extension in June 2008 and continue until June 2012. The contract extension for the GSF C.R. Luigs drillship is scheduled to begin in September 2009 and end in September 2013.

Like most of GlobalSantaFe's long-term contracts, the extensions provide dayrate escalation based on increases in certain costs above current levels and protection against loss due to early termination.