Songa Offshore SE reported that a firm contract for the use of Songa Mercur has been agreed and signed with Zarubezhneft, a public joint stock company of Russia. The contract covers the use of the Songa Mercur for Zarubezhneft's upcoming drilling campaign offshore Cuba.

The contract will commence 1 July 2012, at which point the rig will depart Malaysia after completion of intermediate SPS activities. The rig will remain in Trinidad at a standby rate until the drilling program commences late November 2012. The firm contract is for 325 days with minimum aggregate total revenue of approximately $88 million, inclusive of mobilization elements. The revenue value may increase depending upon the actual operational commencement date and any extension of the drilling program for well testing or other operational considerations.

Tags: Songa Offshore ASA