ExxonMobil extended contact for deepwater drillship Maersk Viking at much lower dayrate

Maersk VikingExxonMobil extended the charter contact for deepwater drillship Maersk Viking for additional 150 days at lower dayrate. The estimated value of the contract extension is 22.5 million USD. The three-year contract, which originally was scheduled to end in July and valued at 610 million USD, will now be extended for additional 150 days to December 2017 with dayrate of 150,000 USD, compared to 557,000 USD in the original contract. Despite of the large decrease in dayrate, Maersk Drilling is confident in profitability of the project, due to successfully decreased cost levels across the fleet, which allows them to operate at lower rates and be more competitive on the market.

“I’m truly pleased on behalf of the crew on board the Maersk Viking and the entire organization that we have been able to secure an extension of the contract with Exxon Mobil. We look forward to continuing our collaboration with customers through a difficult period for the entire industry”, said the head of global sales at Maersk Drilling, Michael Reimer Mortensen. “It is evident that we are now looking at a dayrate much lower than the original contract, reflecting the current market situation. However, Maersk Drilling has significantly lowered cost levels across the fleet in the past years, enabling us to operate just as efficiently in this new environment”, added he.

ExxonMobil has used Maersk Viking for drilling at its Julia field in the Gulf of Mexico. Maersk Viking was the first of four ultra deepwater drillships that Maersk added to its fleet.