By OGJ editors
HOUSTON, Nov. 27 -- Pride International Inc., Houston, has agreed to extend the existing contract on its deepwater semisubmersible Pride North America for an additional 3 years. The rig is operating off Egypt.
Separately, Pride also agreed to operate its deepwater semisubmersibles Pride Brazil and Pride Carlos Walter and its midwater semisubmersibles Pride South Atlantic and Pride South America under 5 year agreements off Brazil.
The total value of the five contracts is expected to be about $2.1 billion, with an additional $200 million of performance bonus opportunities.
The 3-year contract for the Pride North America is expected to begin during the first quarter of 2008.
For the rigs operating off Brazil, the company expects to begin operations under the new terms after the current contract commitment for each rig is complete, beginning with the Pride South America during second-quarter 2007, followed by the Pride South Atlantic in second quarter 2008 and the Pride Brazil and Pride Carlos Walter in third quarter 2008.
Pride recently completed acquisition of its partner's 70% interest in the joint venture companies that own the Amethyst class semisubmersibles Pride Rio de Janeiro and Pride Portland. Pride expects to record a deferred credit of about $192 million, which will be amortized into income over the rigs' remaining 4-year contract terms with Petroleo Brasileiro SA (OGJ Online, July 11, Newsletter).
