Transocean Offshore Deepwater Drilling, Inc. (TODDI) has filed a motion for summary judgment in the U.S. Eastern District Court in Louisiana requesting the court to force BP to honor its contractual obligation to defend, indemnify and hold harmless Transocean for damages associated with BP’s failure to contain flow from its Macondo well in 2010. Transocean says BP has refused to honor its contractual obligations despite what Transocean says is the industry-standard reciprocal indemnity provisions contained in the drilling contract. The original contract was signed in 1998 and extended several times up to and including in 2009. Language in the contract says BP will “defend, release, protect, indemnify and hold harmless” Transocean for any and all fines, penalties and damages associated with environmental pollution originating from the well “without limit and without regard to the cause or causes” including negligence, “whether such negligence be sole, joint, active, passive or gross.” The motion also asserts that after months of discovery and over 200 witness dispositions, it was clear that no evidence of gross negligence by Transocean existed. BP filed suit against Transocean on the one-year anniversary of the incident, alleging that Transocean personnel had willful and callous disregard for the welfare of their colleagues and the environment.
Diamond Offshore jackup Ocean Scepter is under tow from Trinidad to the AmFELS’ Brownsville yard. The rig will be upgraded in preparation for a 612-day contract with Pemex, scheduled to begin November 24. The rig had been working under a one-year contract with OGX off Brazil that was not due to end until early February 2012. While it is not entirely clear how the contract was ended, it is understood it was by mutual agreement between Diamond and OGX.
Ensco has received a two-well contract from Energy XXI for work using jackup ENSCO 90. Operations in South Timbalier Block 54 will begin in continuation of the current contract with Arena Energy, which will finish in mid-to-late November, depending on whether the well is completed. The new 120-day deal now stretches rig availability to March 2012. ENSCO 81 has been signed for a one-year deal starting in February with Dynamic Offshore after it completes its work with Walter Oil & Gas.
Seadrill, Ltd. semi West Sirius has arrived on location in Keathley Canyon Block 292, where it will spud the first approved permit for BP since the Macondo incident in April 2010. Drilling and completion operations are scheduled to last 205 days. Water depth at the location is around 6,034 feet. The well marks the first work for the rig since all deepwater drilling was stopped after Macondo. Seadrill’s contract with BP runs to late July 2014.
Rowan Companies generated a net income from continuing operations of $31.4 million on revenues from continuing operations of $234.7 million for the three months ended September 30, 2011. That compares to net income from continuing operations of $60.2 million on revenues from continuing operations of $238.6 million for the third quarter of 2010. The company said its gross offshore drilling margin was 45% of revenues in the third quarter of 2011 versus 55% for the same period in 2010. Ensco, PLC reported net income of $261.5 million on revenues of $915.6 million for the third quarter 2011. The company said approximately $444 million of the revenue was related to the Pride International acquisition, which was completed on May 31, 2011. In the third quarter 2010, the company reported a net income of $158 million on revenues of $428.3 million. Parker Drilling had a net income of $20.7 million on revenues of $176.6 million for the third quarter 2011. For the same period a year ago, net income was $0.5 million on revenues of $172 million. Transocean, Ltd. reported a third quarter 2011 net loss attributable to controlling interest of $71 million on revenues of $2,242 billion. That compares to a net income attributable to controlling interest of $368 million on revenues of $2,281 billion.