Mermaid Maritime Public Company has announced a temporary suspension of operations of a jack-up drilling rig in the Middle East due to unfavourable market conditions.
The jack-up drilling rig AOD II is owned by Mermaid’s associate Asia Offshore Drilling (AOD). The rig’s charterer, a national oil and gas operator, has requested for a halt in operation for up to 12 months.
“The suspension is due to the impact to the ultimate customer’s drilling program from adverse crude oil price movements affecting the oil and gas industry and with it the offshore drilling services sector,” Mermaid stated.
It added that the customer has the right to recall the rig back to work at any time during the suspension period.
AOD had earlier secured a three-year contract extension for AOD II commencing 15 April 2020 serving this customer.
The suspension, which had commenced upon completion of the last well in progress, shall be at zero-day rate and will automatically extend the term of the contract for a period equal to the suspension.
Mermaid has a 33.76% equity stake in AOD and the remaining 66.24% stake is owned by a subsidiary of Seadrill Limited.
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