Hercules Offshore Announces Rig Contracts
Tuesday, December 11, 2007
Hercules Offshore, Inc. said that Oil and Natural Gas Corporation Limited (ONGC) has awarded three-year contracts for the Hercules 258 and Hercules 260 jackup rigs for drilling operations offshore India. The contract for the Hercules 258 is expected to commence in mid-second quarter 2008 following the completion of an existing contract commitment offshore India. The contract for the Hercules 260 is expected to commence in late first quarter 2008 following the completion of shipyard work on the rig. The company has entered into a contract to transport the Hercules 260 to India after completion of this shipyard work and expects to commence transportation this month. Revenue that could be generated over each of the three-year contracts totals approximately $121m for Hercules 258 and approximately $156.6m for Hercules 260, which excludes payment to the Company of reimbursable expenses and a total of approximately $6.5 million for mobilization of both rigs.