EX-99.2 3 d90686dex992.htm EX-99.2 EX-99.2

Exhibit 99.2

LOGO     

Diamond Offshore Drilling, Inc.

Rig Status Report

August 3, 2015

Updated information noted in bold print

RECENT COMMITMENTS (See Body of Report For Contract Details)

Ocean BlackRhino: Extended term

Ocean Summit: Three-month extension

Ocean Guardian: One firm well

Ocean Apex: 18-month term contract

 

                                                         
   

Water1

Depth

         Year 3          

Contract

Dayrate

   Estimated   Estimated         Planned Downtime  4
(For Periods Lasting >10 days)

Rig Name

   (feet)    

Type2

  

Built

   Location  

Operator

  

(USD)

  

Start Date

   End Date   Status     3Q15 E     4Q15 E     Comments
                    Totals:        152        145     
                   

 

 

    

 

 

    

Gulf of Mexico - U.S.

                  

Ocean BlackHawk

     12,000      DS 15K DP   2014   US GOM   Anadarko   495,000   late May 2014   mid Jun 2019     5-year term + unpriced option         

Ocean BlackHornet

     12,000      DS 15K DP   2014   US GOM   Anadarko   495,000   mid Apr 2015   mid Apr 2020     5-year term + unpriced option         

Ocean BlackRhino (note 5)

     12,000      DS 15K DP   2014   US GOM   Murphy   398,000   late May 2015   late Sep 2016     Extended term         
        US GOM   —   —     late Sep 2016   mid Dec 2016    
 		 Contract prep and customer
acceptance		   
  		      
        US GOM   Hess   400,000   mid Dec 2016   mid Dec 2019     3-year term         

Ocean BlackLion

     12,000      DS 15K DP   2015   Canary Islands  

—

   —     Q2 2012   mid Dec 2015    
 
 		 Mobe to GOM via Canary
Islands; prep and customer
acceptance		   
  
  		     92        75      Mobe, acceptance testing
        US GOM   Hess   400,000   mid Dec 2015   mid Dec 2019     4-year term         

Gulf of Mexico - Mexico

                

Ocean Summit (note 6)

     300      JU IC   1972   Mexico   Pemex   85,999   mid Sep 2012   late May 2015     985-day term         
        Mexico   Pemex   75,000   late May 2015   late Aug 2015     Extension         

Ocean Scepter (note 7)

     350      JU 15K IC   2008   Mexico   Pemex   115,000   early Jan 2015   early Mar 2016    
 		 Remainder of 639-day term
at revised rate		   
  		      

Ocean Ambassador (note 7)

     1,100      SS   1975   Mexico   Pemex   115,000   early May 2015   early Mar 2016    
 		 Remainder of 730-day term
at revised rate		   
  		      

North Sea / Mediterranean / W. Africa

              

Ocean Guardian

     1,500      SS 15K   1985   UK   Kinsale Energy   220,000   mid Jul 2015   mid Aug 2015     One firm well         

Ocean Patriot

     3,000      SS 15K   1983   UK   Shell   400,511   late Oct 2014   late Oct 2017     3-year term         

Ocean Valiant

     5,500      SS 15K   1988   UK   Premier Oil   320,000   early Jun 2015   early Dec 2015    
 		 Two wells + 4 x 1-well
options		   
  		      

Ocean Endeavor

     10,000      SS 15K   2007   Black Sea   ExxonMobil   521,665   late Jun 2014   late Dec 2015    
 
 
 		 18-month term (dayrate incl.
50% of potential 6.6%
bonus) + 6 x 6-month
unpriced options.		   
  
  
  		      

Ocean Confidence

     10,000      SS 15K DP   2001   Canary Islands   —   —     —     —       Actively marketing         

Australasia

              

Ocean Quest

     4,000      SS 15K   1973   Malaysia   —   —     —     —       Actively marketing        0        60      Helideck upgrade

Ocean America

     5,500      SS 15K   1988   Australia   Apache / Quadrant   265,000   late May 2015   late Aug 2015     One well         

Ocean Apex

     6,000      SS 15K   2014   Malaysia   —   —     —   —     Actively marketing         
        Australia   Woodside Energy   285,000   Jun 2016   Nov 2017    
 
 
 		 18-month term, convertible
to 24-month @ $270k/day +
1 x 12-month + 2 x 6-month
unpriced options		   
  
  
  		      

Ocean Rover

     8,000      SS 15K   2003   Malaysia   Murphy   465,000   early Mar 2014   early Mar 2016     2-year term         

Ocean Monarch

     10,000      SS 15K   2008   Singapore   —   —     late Jun 2015   mid Jul 2015     Mobe, contract prep        15        Mobe, contract prep
        Australia   Quadrant / Woodside   410,000   mid Jul 2015   early Oct 2016    
 		 15 months of 18-month term
+ 1 year option		   
  		      
        Australia   Apache / Quadrant   350,000   early Oct 2016   early Jan 2017    
 		 (3 months at reduced rate) on
18-month term		   
  		      

 

Please refer to accompanying disclaimer as well as Diamond Offshore’s 10-K and 10-Q filings with the SEC.

    Page 1 of 3

   

Water1

Depth

         Year 3          

Contract

Dayrate

   Estimated   Estimated       Planned Downtime  4
(For Periods Lasting >10 days)

Rig Name

   (feet)    

Type2

  

Built

  

Location

  

Operator

  

(USD)

  

Start Date

   End Date   Status   3Q15 E     4Q15 E     Comments

South America

                        

Ocean Alliance

     5,250      SS 15K DP   1988   Brazil   Petrobras   367,089   late Jul 2010   mid Jun 2016   6-year term (incl. 50%
of potential 15% bonus)		      

Ocean Victory

     5,500      SS 15K   1997   Trinidad   BP   398,000   early May 2015   mid May 2017   2-year term + 1-year unpriced
option		      

Ocean Onyx

     6,000      SS 15K   2014   Trinidad   BG International   390,000   mid Apr 2015   early Aug 2015   One well      
        Trinidad   BG International   360,000   early Aug 2015   early Oct 2015   One well      

Ocean Clipper

     7,875      DS 15K DP   1997   Brazil   Petrobras   312,625   late Jan 2015   early Dec 2015   Remainder of 5-year term
contract (incl. 50% of potential
5% bonus)+ unpriced option		      

Ocean Courage

     10,000      SS 15K DP   2009   Brazil   Petrobras   567,000   late Feb 2015   late Oct 2015   3-year extension + $112,000
uplift (incl. 50% of potential
6% bonus)		     0        10      Maintenance
        Brazil   Petrobras   455,000   late Oct 2015   late Feb 2018   3-year extension      

Ocean Valor

     10,000      SS 15K DP   2009   Brazil   Petrobras   440,000   early Sep 2011   mid Oct 2015   Remainder of 5-year term      
        Brazil   Petrobras   455,000   mid Oct 2015   mid Oct 2018   3-year extension      

UNDER CONSTRUCTION

                

Ocean GreatWhite

     10,000      SS 15K DP   2016   S. Korea   —   —     Q3 2013   H2 2016   Hyundai shipyard;
commissioning; mobe;
acceptance		      
        Australia   BP   585,000*   H2 2016   H2 2019   3-year term + 2 x 1-year priced
options (@ 585,000 +
escalations); *Dayrate to
increase for customer-requested
equipment additions		      

COLD STACKED

                  

Ocean King

     300      JU IC   1973   US GOM   —   —     —     —     Stacked      

Ocean Nugget

     300      JU IC   1976   US GOM   —   —     —     —     Stacked      

Ocean Spur

     300      JU IC   1981   Malaysia   —   —     —     —     Stacked      

Ocean Titan

     350      JU 15K IC   1974   US GOM   —   —     —     —     Stacked      

Ocean Nomad

     1,200      SS   1975   UK   —   —     —     —     Stacked      

Ocean Princess

     1,500      SS 15K   1975   UK   —   —     —     —     Stacked      

Ocean Vanguard

     1,500      SS 15K   1982   UK   —   —     —     —     Stacked      

Ocean Lexington (note 8)

     2,200      SS   1976   Trinidad   —   —     —     —     Prepare for cold stacking      

Ocean General

     3,000      SS   1976   Malaysia   —   —     —     —     Stacked      

Ocean Star

     5,500      SS 15K   1997   US GOM   —   —     —     —     Stacked      

Ocean Baroness

     8,000      SS 15K   2002   Brazil   —   —     —     —     Demobe to US GOM; prepare
for cold stacking		     45        Mobe to US GOM

NOTES

(1.) Water Depth refers to the rig’s rated operating water depth capability. Often, rigs are capable of drilling or have drilled in greater water depths.

(2.) Rig Type and capabilities:

JU=Jack-up; SS=Semisubmersible; DS=Drillship; 15K=15,000 PSI Well-Control System; DP=Dynamically Positioned Rig; IC=Independent-Leg Cantilevered Rig.

(3.) Year Built represents when rig was (or is expected to be) built and originally placed in service or year redelivered with significant enhancements that enabled the rig to be classified within a different floater category than when originally constructed.

(4.) Planned Downtime only includes downtime periods that as of this report date are, or have been, planned and estimable and do not necessarily reflect actual downtime experienced. Additional downtime may be experienced in the form of possible mobes for new jobs not yet contracted, possible acceptance testing at new jobs, and unplanned maintenance and repairs. Survey start times may also be accelerated or delayed for various reasons.

(5.) Before 1 December 2015, Murphy can revert contract term on the Ocean BlackRhino to its previous 265-day duration and pay a lump sum “payback fee” based on a rate of $550,000 per day.

(6.) In May 2015, PEMEX delivered to our subsidiary a notice of termination of the Ocean Summit contract but then rescinded its termination and, in June 2015, our subsidiary and PEMEX renegotiated the contract at a lower dayrate.

(7.) Our subsidiary and PEMEX have renegotiated the contracts for the Ocean Ambassador and the Ocean Scepter at lower dayrates

(8.) In July 2015, PEMEX delivered to us a notice to initiate the rescission of the Ocean Lexington contract, which process is currently underway.

General Notes

Average Utilization: Assume rates of 92% for DP units, 96% for conventionally moored rigs, and 98% for jack-ups. Rig utilization rates can be adversely impacted by additional downtime due to unscheduled repairs and maintenance, and other factors.

Options should be assumed to be unpriced unless otherwise indicated.

Dayrates exclude amortized revenue related to amounts earned for certain activities, such as mobe, demobe, contract preparation, etc.

Survey Costs: During surveys, normal operating expense will be incurred, plus additional costs.

US GOM=U.S. Gulf of Mexico

 

Please refer to accompanying disclaimer as well as Diamond Offshore’s 10-K and 10-Q filings with the SEC.

    Page 2 of 3

LOGO     

Diamond Offshore Drilling, Inc.

Rig Status Report

Forward-Looking Statements: This report contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements include, without limitation, any statement that may project, indicate or imply future results, events, performance or achievements, and may contain or be identified by the words “expect,” “intend,” “plan,” “predict,” “anticipate,” “estimate,” believe,” “should,” “could,” “may,” “might,” “will,” “will be,” “will continue,” “will likely result,” “project,” “budget,” “forecast,” and similar expressions. Statements by the Company in the rig status report that contain forward-looking statements include, but are not limited to, statements regarding the current term, future dayrates, future status, start and end dates, and comments concerning future contracts and availability, future contract opportunites and termination rights, letters of intent, utilization, surveys, downtime and other aspects of the Company’s drilling rigs, as well as statements concerning customer discussions and outcomes thereof, the impact of these and related events on our operations and revenues, rigs being upgraded or to be upgraded and rigs under construction. Such statements are inherently subject to a variety of assumptions, risks and uncertainties that could cause actual results to differ materially from those anticipated or projected. A discussion of the risk factors that could impact these areas and the Company’s overall business and financial performance can be found in the Company’s reports and other documents filed with the Securities and Exchange Commission. These factors include, among others, general economic and business conditions, contract cancellations, customer bankruptcy, operating risks, casualty losses, industry fleet capacity, changes in foreign and domestic oil and gas exploration and production activity, competition, changes in foreign, political, social and economic conditions, regulatory initiatives and compliance with governmental regulations, customer preferences and various other matters, many of which are beyond the Company’s control. Given these concerns, investors and analysts should not place undue reliance on forward-looking statements. Each forward-looking statement speaks only as of the date of the rig status report, and the Company undertakes no obligation to publicly update or revise any forward-looking statement.

 

Page 3 of 3