Drilling/Production news briefs, July 19

BP Amoco allows Diamond Offshore to postpone delivery of Ocean Confidence; Transocean Sedco Forex's Discoverer Enterprise resumes work for BP Amoco.

BP Amoco PLC granted Diamond Offshore Drilling Inc. an extension on the delivery date of Diamond's dynamically positioned semisubmersible drilling rig Ocean Confidence. BP Amoco has a 5-year contract to use the Ocean Confidence semi. The extension means Diamond Offshore will have until Dec. 1 to test and deliver the rig without breaching the contract; previously the contract called for delivery by July 1. Diamond Offshore will pay a penalty, however�$3.6 million if the rig is delivered by Sept. 30 or $6.1 million if delivery occurs by Dec. 1.

Transocean Sedco Forex Inc.'s ultradeepwater drillship Discoverer Enterprise has resumed offshore drilling operations in the US Gulf of Mexico for BP Amoco under its existing 5-year contract. The firm said last month it had received a letter from BP Amoco alleging default on the contract (OGJ Online, June 12, 2000). The letter alleged that equipment problems relating to the drillship's blowout prevention system caused nonproductive time incidents. Negotiations between the companies apparently resolved the dispute.

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