OCEAN RIG UDW INC. ANNOUNCES SIGNING OF THREE YEAR DRILLING CONTRACT FOR THE OCEAN RIG OLYMPIA
5/10/2012 9:01 AM EST
Nicosia, Cyprus - May 10, 2012 - Ocean Rig UDW Inc.
(the "Company" or "Ocean Rig"), a global provider of
offshore deepwater drilling services, today announced
that it has signed definitive documentation,
following the previously announced Letter of Award,
for its ultra deepwater drillship "Ocean Rig
Olympia", with Total E&P Angola. The contract is for
a three-year period for drilling offshore West
Africa, with an estimated backlog of approximately
$652 million. The contract is expected to commence in
direct continuation of the Ocean Rig Olympia's
existing contract in West Africa. The customer has
the option to extend the contract for two periods of
one year each, with the first option exercisable
within one year from the commencement date under the
drilling contract, and the second option exercisable
within one year after the date of exercise of the
first option.
Mr. George Economou, Chairman & CEO of the Company
commented: "We are pleased to build on the
relationship with Total E&P which started with the
Leiv Eiriksson contract for operations in the North
Sea. With five high specification rigs open in 2013
we are well positioned to leverage the prevalent
strong day rate environment for the deep water market.
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," "i
ntend," "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: