Maersk Awarded Deal Offshore Suriname

(Evercore ISI, 30.Jun.2020) — Maersk Drilling announced the 6th-Gen Maersk Developer was awarded a one-well exploration contract from Petronas for offshore Suriname. The $20.4M backlog includes integrated drilling services and mobe & demobe fees, which implies an all-in dayrate of $267kpd for an estimated 75 days.

Notes DRLCO COO Morten Kelstrup, “It is great to work for Petronas again with a quick reactivation of Mærsk Developer for this campaign in the exciting Suriname-Guyana basin. This will showcase our ability to smoothly and efficiently establish operations in new jurisdictions, as Mærsk Developer will become the first of our rigs to operate offshore Suriname.”

The Maersk Developer is currently hot stacked offshore Trinidad and Tobago, where it had mobed from Mexico in March upon an early termination of its contract with Cairn Energy. We had estimated the rig operated at a dayrate of about $230kpd and cost $110kpd in Mexico, contributing $10M of gross profit in 1Q but would remain off rate and costs drawn down as the rig shifted into cold stack model. However, the new Petronas contract is expected to commence sometime in 3Q or 4Q and includes an additional one-well option for an estimated 75 days.