Mermaid Maritime Public Company’s drilling associate, Asia Offshore Drilling Limited (AOD), has reached an agreement with its customer Saudi Arabian Oil Company (Saudi Aramco) to reduce the operating day rates for three jack-up rigs.

The rigs in question are AOD I, AOD II, and AOD III and their day rates will be reduced by 10 percent.

The operating day rate reductions are effective from April 1, 2015 through to March 31, 2016. This will reduce AOD’s backlog by approximately $20 million.

Mermaid’s associate company AOD under the management of Seadrill Limited was awarded a firm 3 year drilling services contract for all of its three jack-up rigs ‘AOD I’, ‘AOD II’ and ‘AOD III’ to provide drilling services to the Saudi Aramco for operations in offshore Saudi Arabia.

Starting in 2013 to 2016, the contracts came with options for the customer to extend such contracts for another one year to 2017.

According to the press release, the AOD jack-up rigs have been operating with utilisation rates in excess of 95% where in the most recent quarter, AOD jack-up rigs achieved an average 99% utilisation rates.

Source: www.offshoreenergytoday.com

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