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8-K - FORM 8-K - DIAMOND OFFSHORE DRILLING, INC. | h81468e8vk.htm |
1
Exhibit 99.1
DIAMOND OFFSHORE DRILLING, INC. RIG STATUS REPORT AS OF
April 21, 2011
April 21, 2011
RECENT COMMITMENTS (See Body of Report For Contract Details/Date Changes and Other
Information)
Ocean Nugget
|
430-day term | |
Ocean Patriot
|
21 firm wells + 3 options | |
Ocean Nomad
|
4 firm wells + 3 options | |
Ocean Monarch
|
one well | |
Ocean Titan
|
one well extension |
Nominal | Dayrate | |||||||||||||||
Rig Name | WD* | Location | Status | Operator | Current Term | ($000s) | Start Date | Est. End Date | ||||||||
Domestic Deepwater Semisubmersibles (2) | ||||||||||||||||
Ocean Victory (Note 1)
|
5,500 | GOM | Current Contract | ERT | one well | low 250s | mid April 2011 | mid May 2011 | ||||||||
GOM | Contract Continuation | ATP | continue six-wells | low 560s | mid May 2011 | early Aug. 2011 | ||||||||||
GOM | Contract Continuation | ATP | balance 1-year term | low 540s | early Aug. 2011 | mid Oct. 2011 | ||||||||||
Ocean Monarch (Note 2)
|
10,000 | GOM | Current Contract | Anadarko | cont. four-year term | low 440s | early August 2010 | mid March 2013 | ||||||||
GOM | Future Contract | Marathon | one well | mid 290s | early May 2011 | late June 2011 | ||||||||||
GOM | Current Contract | Anadarko | cont. four-year term | low 440s | late June 2011 | mid March 2013 | ||||||||||
Domestic 2nd Generation Semisubmersibles (1) | ||||||||||||||||
Ocean Saratoga
|
2,200 | GOM | Current Contract | Taylor | one-year extension | 200-210 | mid July 2010 | late June 2011 | ||||||||
GOM | Five Year Survey | DODI | early July 2011 | late Aug. 2011 | ||||||||||||
Domestic Jack-ups (2) |
||||||||||||||||
Ocean Columbia
|
250 IC | GOM | Current Contract | Shell | one well | low 60s | mid April 2011 | early May 2011 | ||||||||
Ocean Titan
|
350 IC | GOM | Current Contract | Ankor | one well extension | low 70s | mid April 2011 | late May 2011 |
Note (1). Victory In regard solely to the ATP contract, and for a minimum of the first
240 days of the initial one-year contract period, Contract Drilling Revenue is to be recognized
under normal GAAP accrual accounting at $540,000 per day, and additional contract dayrate of
$20,000 is to be recognized as interest income over applicable periods reflecting deferred payment
plan. The contract calls for $75,000 per day of the $560,000 contract dayrate to be paid on a
current basis and the remaining $485,000 per day to be paid pursuant to an overriding royalty
interest structure, as discussed in the Companys Form 8-K that was filed on June 3, 2009.
Remaining days under the initial one-year contract period will be deferred until approximately the
second quarter of 2011, when the contract provides that the rig will be utilized by the operator at
a dayrate of $540,000 payable in cash.
Note (2). Monarch In June 2010, one of our customers asserted force majeure as a basis for its
termination of the drilling contract for the Ocean Monarch which had a remaining term of
approximately 36 months. The operator has also filed suit against us in U.S. District Court in
Houston seeking a declaratory judgment that its termination of the drilling contract is warranted
under the contract. We do not believe the events cited by the operator come within the definition
of force majeure under the drilling contract, and we do not believe that the operator has the right
to terminate the drilling contract on this basis. Although we cannot predict with certainty the
results of any such litigation, and there can be no assurance as to its ultimate outcome, we intend
to vigorously defend this litigation and challenge the operators attempt to terminate the drilling
contract.
2
DIAMOND OFFSHORE DRILLING, INC. RIG STATUS REPORT AS OF
April 21, 2011
April 21, 2011
Nominal | Dayrate | |||||||||||||||
Rig Name | WD* | Location | Status | Operator | Current Term | ($000s) | Start Date | Est. End Date | ||||||||
International Semisubmersibles (25) | ||||||||||||||||
North Sea/Mediterranean |
||||||||||||||||
Ocean Nomad
|
1,200 | North Sea | Current Contract | BG Intl. | four firm wells + three option wells | mid 240s | late Dec. 2010 | mid Sept. 2011 | ||||||||
Ocean Guardian
|
1,500 | Falkland Is. | Current Contract | AGR/Desire/ Rockhopper | ten firm wells | mid 240s | mid Feb. 2010 | mid April 2011 | ||||||||
Falkland Is. | Future Contract | AGR/Desire/ Rockhopper | three firm wells + 10 priced options | mid 260s | mid April 2011 | mid July 2011 | ||||||||||
Ocean Princess
|
1,500 | North Sea | Current Contract | Talisman | 120-day additional term | mid 270s | early April 2011 | late July 2011 | ||||||||
North Sea | Intermediate Survey | DODI | late July 2011 | early Sept. 2011 | ||||||||||||
Ocean Vanguard
|
1,500 | North Sea | Current Contract | Statoil | three-year term + unpriced option | high 340s | mid Aug. 2010 | mid June 2013 | ||||||||
Ocean Endeavor (Note 3)
|
10,000 | Egypt | Current Contract | Burullus | one-year term + priced option | mid 220s | mid July 2010 | mid July 2011 | ||||||||
Ocean Confidence
|
Angola | Current Contract | Total | assignment from Cobalt | upper 360s | early Feb. 2011 | early May 2011 | |||||||||
Angola | Future Contract | Cobalt | second firm well + option | low 360s | early May 2011 | early Oct. 2011 | ||||||||||
Mobe to GOM | DODI | early Oct. 2011 | early Dec. 2011 | |||||||||||||
GOM | Future Contract | Murphy | resume interrupted contract + unpriced option | low 510s | early Dec. 2011 | early Dec. 2012 | ||||||||||
Ocean Valiant (Note 4)
|
5,500 | Angola | Current Contract | Total | two-year term | low 620s | late Sept. 2009 | late Sept. 2011 |
Note (3). Endeavor In connection with the relocation of this rig out of the GOM pursuant to
this contract, the previous operator paid an early termination fee of $31 million in order to
satisfy certain contractual obligations.
Note (4). Valiant Dayrate subject to certain potential adjustments that are not expected to be
material.
3
DIAMOND OFFSHORE DRILLING, INC. RIG STATUS REPORT AS OF
April 21, 2011
April 21, 2011
Nominal | Dayrate | |||||||||||||||
Rig Name | WD* | Location | Status | Operator | Current Term | ($000s) | Start Date | Est. End Date | ||||||||
Australasia |
||||||||||||||||
Ocean Patriot
|
1,500 | Australia | Current Contract | Apache | three-well extension | between 230-270 | mid Feb. 2011 | late May 2011 | ||||||||
Australia | Maintenance | DODI | late May 2011 | mid June 2011 | ||||||||||||
Australia | Future Contract | PTTEP | 200 day term | mid 230s | mid June 2011 | early Jan. 2012 | ||||||||||
Ocean America
|
5,500 | Australia | Resume Current Contract | Woodside | remainder term | mid 420s | mid March 2011 | late Sept. 2012 | ||||||||
Ocean General
|
3,000 | Vietnam | Current Contract | Premier Oil | first of three wells + three unpriced option | low 210s | mid March 2011 | late April 2011 | ||||||||
Indonesia | Future Contract | Premier Oil | remainder of three wells + one unpriced option | low 240s | late April 2011 | late July 2011 | ||||||||||
Ocean Rover
|
8,000 | Indonesia | Current Contract | Murphy/Hess | est. six months | high 370s | mid Dec. 2010 | mid Aug. 2011 | ||||||||
Malaysia | Resume Current Contract | Murphy | resume two-year ext. | low 450s | mid Aug. 2011 | mid Jan. 2012 |
4
DIAMOND OFFSHORE DRILLING, INC. RIG STATUS REPORT AS OF
April 21, 2011
April 21, 2011
Nominal | Current Term - | Dayrate | ||||||||||||||
Rig Name | WD* | Location | Status | Operator | Note (6) | ($000s) | Start Date | Est. End Date | ||||||||
Brazil (Note 5) |
||||||||||||||||
Ocean Ambassador
|
1,100 | Brazil | Current Contract | OGX | 3-year term | low 260s | mid Sept. 2009 | mid Sept. 2012 | ||||||||
Ocean Whittington
|
1,650 | Brazil | Current Contract | Petrobras | 5-year term (includes 50% of pot.15% bonus) | low 240s | late Jan. 2009 | late Sept. 2012 | ||||||||
Brazil | Five Year Survey | DODI | late Sept. 2011 | late Dec. 2011 | ||||||||||||
Ocean Concord
|
2,300 | Brazil | Current Contract | Petrobras | 5-year term (includes 50% of pot.15% bonus) | high 240s | early Jan. 2008 | early Jan. 2013 | ||||||||
Ocean Lexington
|
2,200 | Brazil | Current Contract | OGX | 3-year term | mid 330s | early Feb. 2010 | early Feb. 2013 | ||||||||
Ocean Yorktown
|
2,850 | Brazil | Current Contract | Petrobras | 5-year term (includes 50% of pot.15% bonus) | low 250s | mid Aug. 2008 | mid Aug. 2013 | ||||||||
Ocean Yatzy
|
3,300 | Brazil | Current Contract | Petrobras | 5-year term (includes 50% of pot.10% bonus) | mid 250s | early Oct. 2009 | early Oct. 2014 | ||||||||
Brazil | Intermediate Survey | DODI | early July 2011 | early Aug. 2011 | ||||||||||||
Ocean Quest
|
4,000 | Brazil | Remainder term at new blended rate | OGX | revised 2-year term | low 270s | mid Feb. 2011 | late Dec. 2011 | ||||||||
Brazil | Future Contract | OGX | 1-year extension | low 250s | late Dec. 2011 | late Dec. 2012 | ||||||||||
Ocean Winner
|
4,000 | Brazil | Current Contract | Petrobras | 5-year term (includes 50% of pot.10% bonus) | mid 280s | mid Oct. 2010 | mid March 2015 | ||||||||
Ocean Worker
|
4,000 | Brazil | Current Contract | Petrobras | 6-year term (includes 50% of pot.10% bonus) | mid 280s | late Feb. 2009 | late Feb. 2015 | ||||||||
Ocean Alliance
|
5,250 | Brazil | Current Contract | Petrobras | 6-year term (includes 50% of pot.15% bonus) | mid 360s | late July 2010 | late June 2016 | ||||||||
Ocean Star
|
5,500 | Brazil | Current Contract | OGX | part one of 2-year term extension | low 310s | mid Feb. 2011 | late Dec. 2011 | ||||||||
Brazil | Future Contract | OGX | part two of 2-year term extension | low 270s | late Dec. 2011 | mid Feb. 2013 | ||||||||||
Ocean Baroness
|
7,000 | Brazil | Current Contract | Petrobras | three-year term (includes 50% of pot. 5% bonus) + option to convert to 5 years during 1st year of operation | mid 280s | early Sept. 2010 | early Sept. 2013 |
Note (5) All Brazilian contracts include unpriced options
5
DIAMOND OFFSHORE DRILLING, INC. RIG STATUS REPORT AS OF
April 21, 2011
April 21, 2011
Nominal | Dayrate | |||||||||||||||
Rig Name | WD* | Location | Status | Operator | Current Term | ($000s) | Start Date | Est. End Date | ||||||||
Brazil Cont. (Note 5) |
||||||||||||||||
Ocean Courage
|
10,000 | Brazil | Current Contract | Petrobras | five-year term (includes 50% of pot. 6% bonus) | 400 410 | mid Feb. 2010 | mid Feb. 2015 | ||||||||
Ocean Valor
|
10,000 | Brazil | Current Contract | Petrobras | 3-year term + option to convert to 5 years during 1st year | low 450s | late Oct. 2010 | late Oct. 2013 | ||||||||
Drillship (1) |
||||||||||||||||
Ocean Clipper
|
7,875 | Brazil | Current Contract | Petrobras | 5-year term (includes 50% of pot. 5% bonus) | mid 310s | mid Dec. 2010 | late July 2011 | ||||||||
Brazil | Upgrade for Petrobras | DODI | late July 2011 | late Oct. 2011 | ||||||||||||
Brazil | Resume Future Contract | Petrobras | 5-year term (includes 50% of pot. 5% bonus) | mid 310s | late Oct. 2011 | mid Dec. 2015 | ||||||||||
Note (5) All Brazilian contracts include unpriced options | ||||||||||||||||
International Jack-ups (7) |
||||||||||||||||
Ocean Nugget
|
300 IC | Mexico | Resume Current Contract | Pemex | 849 day term | mid 130s | early Feb. 2010 | late July 2011 | ||||||||
Mexico | Five Year Survey | DODI | late July 2011 | early Sept. 2011 | ||||||||||||
Mexico | Future Contract | Pemex | 430 day term | mid 80s | early Aug. 2011 | mid Oct. 2012 | ||||||||||
Ocean Summit
|
300 IC | Mexico | Current Contract | Pemex | 288 day term | mid 80s | late March 2011 | late Dec. 2011 | ||||||||
Mexico | Five Year Survey | DODI | mid July 2011 | late Aug. 2011 | ||||||||||||
Ocean Scepter
|
350 IC | Brazil | Current Contract | OGX | one-year term + unpriced option | mid 130s | early Feb. 2011 | late March 2012 | ||||||||
Ocean King
|
300 IC | Montenegro | Actively Marketing | DODI | ||||||||||||
Ocean Sovereign
|
300 IC | Thailand | Current Contract | Salamander | Six firm + three unpriced option wells | low 70s | early Feb. 2011 | mid July 2011 | ||||||||
Thailand | Five Year Survey | DODI | mid July 2011 | mid Oct. 2011 | ||||||||||||
Ocean Heritage
|
300 IC | Suez Gulf | Current Contract | SUCO | six-month extension/w right to terminate after three months | high 50s | early Feb. 2011 | early July 2011 | ||||||||
Suez Gulf | Five Year Survey | DODI | early Oct. 2011 | mid Nov. 2011 | ||||||||||||
Ocean Spur
|
300 IC | Egypt | Current Contract | WEPCO | one-year extension + unpriced option | mid 60s | late Oct. 2010 | late Oct. 2011 |
NOTES: Rig utilization rates can be adversely impacted by additional downtime due to
unscheduled repairs and maintenance, weather conditions and other factors.
On rig utilization, assume 95% for DP units, 96% for conventionally moored rigs, and 98% for
jack-ups.
An LOI is subject to customary conditions, including the execution of a definitive agreement
and as such may not result in a binding contract.
Options are un-priced and any extension of contract is subject to mutually agreeable terms &
conditions unless otherwise indicated.
Mobe revenues (if any) and mobe expenses are deferred, and generally are amortized over the
life of the contract. GOM=Gulf of Mexico.
*Nominal Water Depth Nominal water depth (in ft.) reflects the rigs current operating water
depth capability. Often, rigs are capable of drilling, or have drilled, in greater water depths.
In all cases, floating rigs are capable of working successfully at greater depths than their
nominal depth. On a case by case basis, we may achieve a greater depth capacity by providing
additional equipment.
6
DIAMOND OFFSHORE DRILLING, INC. RIG STATUS REPORT AS OF
April 21, 2011
April 21, 2011
EXPECTED 2011 DOWNTIME 10 DAYS OR LONGER (Subject to Change*)
# Days
# Days
Total DT YTD = 168 | EST 11 Total = 718 |
Rig | Q1 Actual | EST Q2 | Comments | |||||||
Shipyard 5-Year Surveys/Maintenance | ||||||||||
Nugget |
0 | 5-year survey/maintenance Q3 | ||||||||
Clipper |
0 | 5-year survey/maint/upgrade Q3,Q4 | ||||||||
Summit |
17 | 0 | Maint. Q1, 5-year survey/maint. Q3 | |||||||
Saratoga |
0 | 5-year survey/maintenance Q3 | ||||||||
Whittington |
0 | 5-year survey/maintenance Q3 Q4 | ||||||||
Sovereign |
0 | 5-year survey/maintenance Q3 Q4 | ||||||||
Heritage |
0 | 5-year survey/maintenance Q4 | ||||||||
Total 5-year Surveys |
17 | 0 | ||||||||
Intermediate Surveys/Acceptance Testing/Maintenance | ||||||||||
Princess |
0 | Intermediate survey/maintenance Q3 | ||||||||
Yatzy |
0 | Intermediate survey/maintenance Q3 | ||||||||
Confidence |
47 | 0 | Acceptance testing/maintenance | |||||||
Total Contract Prep. |
47 | 0 | ||||||||
Contract Prep/Maintenance/Other | ||||||||||
Patriot |
21 | Maintenance | ||||||||
Scepter |
31 | 0 | Standby | |||||||
America |
73 | 0 | Maintenance | |||||||
Other Total |
104 | 21 | ||||||||
Total |
168 | 21 |
* Reflects currently planned downtime. Expect additional downtime in form of possible
mobes for new jobs not yet contracted, possible acceptance testing at new jobs, and unanticipated
maintenance. Survey start times may also be accelerated or delayed for various reasons.
Does Not Include Cold or Hot Stacked Rigs (see final page for cold stacked units).
2012 ESTIMATED SURVEY DOWNTIME = 694 days
Special Surveys: Endeavor (40); Patriot (50); Yorktown (60); Quest (60); Worker (60); Star
(60); Baroness (60); Victory (60); King (35).
Intermediate Surveys/UWILD: Guardian (45); Columbia (12); Titan (12); Courage (10); Valor (10).
Other Prep/Maintenance: Confidence (60); Rover (60).
Survey Costs: During surveys, normal opex applies, plus additional costs.
Mobe Costs: Amortized mobe costs are generally offset by amortized mobe revenues.
7
DIAMOND OFFSHORE DRILLING, INC. RIG STATUS REPORT AS OF
April 21, 2011
April 21, 2011
Nominal | ||||||||||||||||||
Rig Name | WD | Location | Status | Operator | Order Date | Est. Delivery Date | ||||||||||||
RIGS UNDER CONSTRUCTION Dynamically Positioned Drillships (2) | ||||||||||||||||||
Ocean BlackHawk
|
10,000 | South Korea | Hyundai Heavy Industries Co., Ltd. | DODI | Q1 2011 | Q2 2013 | ||||||||||||
Ocean BlackHornet
|
10,000 | South Korea | Hyundai Heavy Industries Co., Ltd. | DODI | Q1 2011 | Q4 2013 | ||||||||||||
COLD STACKED RIGS (8) = (4 jack-ups, 4 semisubmersibles) | ||||||||||||||||||
Ocean Crusader
|
200 MC | GOM | Stacked | DODI | ||||||||||||||
Ocean Drake
|
200 MC | GOM | Stacked | DODI | ||||||||||||||
Ocean Champion
|
250 MS | GOM | Stacked | DODI | ||||||||||||||
Ocean Spartan
|
300 IC | GOM | Stacked | DODI | ||||||||||||||
Ocean Voyager
|
3,200 | GOM | Stacked | DODI | ||||||||||||||
Ocean Epoch
|
3,000 | Malaysia | Stacked | DODI | ||||||||||||||
Ocean New Era
|
1,500 | GOM | Stacked | DODI | ||||||||||||||
Ocean Bounty
|
1,500 | Malaysia | Stacked | DODI | ||||||||||||||
Forward-Looking Statements: The rig status report contains forward-looking statements
within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of
the Securities Exchange Act of 1934, as amended. Forward-looking statements include, without
limitation, any statement that may project, indicate or imply future results, events, performance
or achievements, and may contain or be identified by the words expect, intend, plan,
predict, anticipate, estimate, believe, should, could, may, might, will, will
be, will continue, will likely result, project, budget, forecast, and similar
expressions. Statements by the Company in the rig status report that contain forward-looking
statements include, but are not limited to, statements regarding the current term, future dayrates,
future status, start and end dates, and comments concerning future contracts and availability,
letters of intent, utilization, surveys, downtime and other aspects of the Companys drilling rigs,
as well as any statements concerning legal
proceedings and outcomes thereof, the impact of these and related events on our operations and
revenues, the effects of claims of force majeure and the outcomes of discussions with operators
with regard thereto, rigs being upgraded or to be upgraded, rigs under construction and the revised
Ocean Victory contract. Such statements are inherently subject to a variety of assumptions, risks
and uncertainties that could cause actual results to differ materially from those anticipated or
projected. A discussion of the risk factors that could impact these areas and the Companys overall
business and financial performance can be found in the Companys reports and other documents filed
with the Securities and Exchange Commission. These factors include, among others, general economic
and business conditions, contract cancellations, customer bankruptcy, operating risks, casualty
losses, industry fleet capacity, changes in foreign and domestic oil and gas exploration and
production activity, competition, changes in foreign, political, social and economic conditions,
regulatory initiatives and compliance with governmental regulations, customer preferences and
various other matters, many of which are beyond the Companys control. Given these concerns,
investors and analysts should not place undue reliance on forward-looking statements. Each
forward-looking statement speaks only as of the date of the rig status report, and the Company
undertakes no obligation to publicly update or revise any forward-looking statement.