US-based provider of offshore contract drilling services Hercules Offshore has signed a five-year contract with Italian oil and gas major Eni to provide Hercules 260 jackup rig in West Africa
According to the contract, Hercules Offshore will receive US$75,000 per day from Eni once the price of Brent crude reaches US$86 per barrel. The maximum rate per day will be US$125,000 when the price of oil is US$125 or more per barrel.
The contract is effective April 2015 and is expected to end in five years. The cost of contract specific upgrades will be reimbursed by the operator.
The Hercules 260 jackup rig, which has the capacity to drill to a depth of 6,096 metres, was constructed by US-based manufacturer Marathon Letourneau in the late 1970s. The unit received an upgrade in 2008.
As of April 2015, the company’s fleet includes 33 jackup rigs and 24 lifeboat vessels. The rigs are capable of working in water depths ranging from 2.74 metres to 121.92 metres and have an ability to drill to maximum water depths ranging from 4,572 metres to 10,668 metres.
