R&B Falcon Lands Drilling Contracts for Semisubmersibles

R&B Falcon Inc. has been granted a contract by Petro-Canada, utilizing the fourth-generation semisubmersible Henry Goodrich for the development of the Terra Nova field offshore eastern Canada. The agreement with Petro-Canada provides for a firm two-year period commencing during the first quarter of 2000, following the unit's completion of its current drilling program with BP Amoco in the U.K. The total contract value amounts to an estimated figure of $74 million with Petro-Canada having the option to extend the primary term of the contract for up to an additional three years with rates to be determined based on a market mechanism. Additionally, the company announced that Arcade Drilling AS received a fixed term extension with BP Amoco through late July 2000 for Paul B. Loyd, Jr. BP expects to utilize both Loyd and Goodrich for drilling operations west of Shetland in the U.K., where the units are currently located.