Atwood Oceanics, a Houston-based international drilling contractor, has announced that due to the civil unrest in Egypt, its customer, RWE Dea Nile has given notice to Alpha Offshore Services Company, a subsidiary of Atwood, of a force majeure event affecting the operations of the Atwood Aurora which is presently operating offshore Egypt in the Mediterranean Sea.
Provisions of the drilling contract provide for a day rate of 70% of the current operating rate of $133,000 during the first 15 days of the force majeure event. Thereafter, 50% of the operating rate will apply, up to remediation of the force majeure event or contract termination, whichever occurs first. The drilling contract can be terminated by either party after a 30 day period of a continuing force majeure event.
Atwood Oceanics said it has secured the well and the company is in the process of halting offshore operations.
The company also announced today it earned net income of $52,850,000, on revenues of $146,286,000 for the quarter ended December 31, 2010 compared to net income of $66,984,000, on revenues of $164,243,000 for the quarter ended December 31, 2009.
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