OCEAN RIG UDW INC. ANNOUNCES SIGNING OF THREE YEAR DRILLING CONTRACT FOR THE OCEAN RIG MYLOS AND EXTENSION OF THE EXPIRY DATE FOR ITS NEWBUILDING OPTIONS
9/5/2012 9:01 AM EST
Nicosia, Cyprus - September 5, 2012 - Ocean Rig UDW
Inc. (NASDAQ:ORIG) (the "Company" or "Ocean Rig"), a
global provider of offshore deepwater drilling
services, announced today that it has signed
definitive documentation, following the previously
announced Letter of Intent, for the Ocean Rig Mylos, a
7th generation drillship, with Repsol Sinopec Brasil
S.A. The Ocean Rig Mylos is currently being
constructed at Samsung Heavy Industries shipyard and
is scheduled for delivery in July 2013. It is the
first in a series of three 7th generation drillships
Ocean Rig expects to take delivery of during the
second half of 2013 from Samsung. The drilling
contract is for a 3-year period, commencing upon
delivery of the drillship from the shipyard, for
drilling offshore Brazil, with an estimated revenue
backlog of approximately $700 million. Under the
contract, Repsol also has options to extend the
contract for up to two years beyond the initial three-
year contract period.
The company further announced that it has agreed with
Samsung Heavy Industries to extend, at no additional
cost, the deadline of exercising its options to
construct up to three additional ultra-deepwater
drillships, to March 31, 2013.
About Ocean Rig
Ocean Rig is an international offshore drilling
contractor providing oilfield services for offshore
oil and gas exploration, development and production
drilling, and specializing in the ultra-deepwater and
harsh-environment segment of the offshore drilling
industry. The company owns and operates 9 offshore
ultra deepwater drilling units, comprising of 2 ultra
deepwater semisubmersible drilling rigs and 7 ultra
deepwater drillships, 3 of which remain to be
delivered to the company during 2013.
Visit the Company's website at www.ocean-rig.com.
Forward-Looking Statements
Matters discussed in this release may constitute
forward-looking statements. Forward-looking statements
relate to Ocean Rig's expectations, beliefs,
intentions or strategies regarding the future. These
statements may be identified by the use of words like
"anticipate," "believe," "estimate," "expect,"
"intend," "may," "plan," "project," "should," "seek,"
and similar expressions. Forward-looking statements
reflect Ocean Rig's current views and assumptions with
respect to future events and are subject to risks and
uncertainties.
The forward-looking statements in this release are
based upon various assumptions, may of which are
based, in turn, upon further assumptions, including
without limitation, management's examination of
historical operating trends, data contained in Ocean
Rig's records and other data available from third
parties. Although Ocean Rig believes that these
assumptions were reasonable when made, because these
assumptions are inherently subject to significant
uncertainties and contingencies which are difficult or
impossible to predict and are beyond Ocean Rig's
control, Ocean Rig cannot assure you that it will
achieve or accomplish these expectations, beliefs or
projections described in the forward-looking
statements contained herein. Actual and future results
and trends could differ materially from those set
forth in such statements.
Important factors that, in Ocean Rig's view, could
cause actual results to differ materially from those
discussed in the forward-looking statements include
(i) factors related to the offshore drilling market,
including supply and demand, utilization, day rates
and customer drilling programs; (ii);hazards inherent
in the drilling industry and marine operations causing
personal injury or loss of life, severe damage to or
destruction of property and equipment, pollution or
environmental damage, claims by third parties or
customers and suspension of operations; (iii) changes
in laws and governmental regulations, particularly
with respect to environmental matters; (iv) the
availability of competing offshore drilling vessels;
(v) political and other uncertainties, including risks
of terrorist acts, war and civil disturbances; piracy;
significant governmental influence over many aspects
of local economies, seizure; nationalization or
expropriation of property or equipment; repudiation,
nullification, modification or renegotiation of
contracts; limitations on insurance coverage, such as
war risk coverage, in certain areas; political unrest;
foreign and U.S. monetary policy and foreign currency
fluctuations and devaluations; the inability to
repatriate income or capital; complications associated
with repairing and replacing equipment in remote
locations; import-export quotas, wage and price
controls imposition of trade barriers; regulatory or
financial requirements to comply with foreign
bureaucratic actions; changing taxation policies; and
other forms of government regulation and economic
conditions that are beyond our control; (vi) the
performance of our rigs; (vii) our ability to procure
or have access to financing and comply with our loan
covenants; (viii) our ability to successfully employ
our drilling units; (ix) our capital expenditures,
including the timing and cost of completion of capital
projects; and (x) our revenues and expenses. Due to
such uncertainties and risks, investors are cautioned
not to place undue reliance upon such forward-looking
statements.
Contact:
Investor Relations / Media:
Nicolas Bornozis
Capital Link, Inc. (New York)
Tel. 212-661-7566
E-mail: