Ocean BlackHawk

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Diamond Offshore Nets $350M for Ocean BlackHawk Drillship Contract Extension

U.S.-based offshore drilling company Diamond Offshore has secured a contract extension with Anadarko Petroleum, a wholly owned subsidiary of Occidental, for Ocean BlackHawk drillship in the U.S. Gulf of Mexico.

Back in October 2023, the Ocean BlackHawk drillship is headed to the Gulf of Mexico for its contract with Oxy. With it's newly installed MPD (Managed-Pressure Drilling) equipment, she is ready for more opportunities. Diamond Offshore anticipated commencing the year-long campaign with Oxy in November 2023, following mobilization from Las Palmas and acceptance testing in the Gulf of Mexico.

The two-year contract extension starts in November 2024 in direct continuation of the rig’s current contract.

The extension represents approximately $350 million dollars of additional backlog for Diamond Offshore, excluding any managed pressure drilling services, and replaces the one-year priced option that was agreed in May 2023.

Anadarko retains three one-year unpriced options, according to Diamond Offshore.

“This extension is a testament to the safe performance of our crews and provides further visibility to our earnings and cash flow streams for 2025 and 2026. Combined with our previous awards, this brings our total contract backlog to approximately $2.1 billion,” said Bernie Wolford, Jr., President and Chief Executive Officer.