Aquadrill Announces Charter Hire Agreement for the Vela

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Dec 15, 2022, 11:12 ET

LONDON, Dec. 15, 2022 /PRNewswire/ -- Aquadrill LLC ("Aquadrill" or the "Company") has extended a charter hire agreement with a subsidiary of Diamond Offshore Drilling, Inc. (the "Manager") to provide the Company's Vela rig, an MPD outfitted 7^th generation drillship, for operations in the US Gulf of Mexico for a 150 day drilling contract with a total expected contract value of approximately $60 million.

The terms of the charter hire agreement are consistent with the current management services agreements in place between the Company and the Manager. Further, the resulting financial benefits for the Company are as if the Company had entered into the drilling contract directly.

Concurrent with extending the charter hire for this new work scope, an agreement to suspend the underlying drilling contract related to the charter hire for the rig running from January to August 2023 has been entered into. This contract will be suspended after the first well and the new 150 day work scope will commence in direct continuation. The rig is expected to return to the initial underlying drilling contract in August 2023 and continue with the remaining firm work plus options if exercised.

FORWARD LOOKING STATEMENTS

This news release includes forward looking statements. Such statements are generally not historical in nature, and specifically include statements about the Company's plans, strategies, business prospects, contracts, agreements, changes and trends in its business and the markets in which it operates. The duration, timing (including both starting and ending dates) and total contract value of customer contracts and any related agreements are estimates only. The actual total contract value over the course of any given contract or agreement may be lower and could be substantially lower, depending on a number of factors (cancellation, suspension, delays, rig downtime, etc.). These statements are made based upon management's current plans, expectations, assumptions and beliefs concerning future events impacting the Company and therefore involve a number of risks (some beyond the control of the Company), uncertainties and assumptions that could cause actual results to differ materially from those expressed or implied in the forward-looking statements, which speak only as of the date of this news release. Consequently, no forward-looking statement can be guaranteed. When considering these forward looking statements, you should keep in mind the risks described from time to time in the Company's regulatory filings and periodic reporting. The Company undertakes no obligation to update any forward looking statements to reflect events or circumstances after the date on which such statement is made or to reflect the occurrence of unanticipated events. New factors emerge from time to time, and it is not possible for the Company to predict all of these factors. Further, the Company cannot assess the impact of each such factor on its business or the extent to which any factor, or combination of factors, may cause actual results to be materially different from those contained in any forward looking statement.

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