Hercules Offshore received extension of contract for jackup rig Hercules 266 by Saudi Aramco. The extension is until June 30, 2016 at dayrate of 63,650 USD. The rig was chartered by Saudi Aramco in 2014 and contract expiration in end of March 2016 at dayrate 117,000 USD, but in mid-2015 the both companies agreed on costs reduction and reduced the dayrate to 67,000 USD, until in beginning of 2016 to reduce it once again to 63,650 USD. The low oil prices, the overcapacity of the offshore market and liquidity problems forced Hercules Offshore to accept the new offer at danger of contract cancellation.
Saudi Aramco operated two other jackup rigs Hercules 261 and Hercules 262 on 5 year contract, which expires in the end of 2019.
Hercules Offshore is major offshore operator, having fleet of 27 jackup rigs and 17 liftboats. The Houston-based company offers a range of services to oil and gas producers during drilling, well service, platform inspection, maintenance, and decommissioning operations in several key shallow water provinces around the world.