Saudi Aramco, Rowan Seal Deals

Rowan signed contracts with Saudi Aramco for two of its Gulf of Mexico-based rigs for higher dayrates, on track with its plans to move those rigs overseas, sending its shares up 9%. In July, the offshore rig contractor said it was in talks to move two high-end shallow-water rigs out of the Gulf of Mexico due to demand elsewhere.

The rigs, Bob Palmer and Ralph Coffman, are expected to move out of the US Gulf during the fourth quarter of the year, to work in the Middle East, the company said in a filing with US regulators. Bob Palmer was signed for a dayrate of mid 270,000s, more than double of what it was signed for with its earlier operator.

Ralph Coffman was signed for low 220,000s, about 20% rise from its prior contract, Reuters reported. "It's a very strong dayrate, compared to where the current dayrates are...," Howard Weil analyst David Wilson said. The company said the contract was for three years, and it will begin in late second quarter of 2011. In July, the company received a notice of declaration of force majeure from the last operator of the Bob Palmer, following which the rig was idle for 13 days during the month. - Upstream