Atwood Oceanics give Notice of a force majeure in Egypt

abarrelfull wrote on 02 Feb 2011 08:03
Tags: africa atwood egypt services

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ATWOOD OCEANICS, INC., a Houston-based international drilling contractor (NYSE: ATW), announced that, on January 29, 2011, due to the civil unrest that has occurred in Egypt, our customer, RWE Dea Nile GmbH gave notice to Alpha Offshore Services Company, a wholly-owned subsidiary of Atwood Oceanics, Inc., 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.

We have secured the well and are in the process of halting offshore operations.

• Atwood Oceanics give Notice of a force majeure in Egypt

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