HOUSTON, June 30 /PRNewswire/ -- R&B Falcon Corporation (NYSE: FLC)
announced today that R&B Falcon, Inc. has been awarded a drilling contract by
Petro-Canada (NYSE: PCZ) utilizing the fourth-generation semisubmersible
"Henry Goodrich" for the development of the Terra Nova field offshore eastern
Canada. Arcade Drilling AS, a 74% majority owned subsidiary of R&B Falcon
Corporation, owns the fourth-generation semisubmersibles "Henry Goodrich" and
"Paul B. Loyd, Jr."
The Petro-Canada drilling contract provides for a firm two-year period
starting in the first quarter of 2000 following the unit's completion of its
current drilling program with BP Amoco (NYSE: BPA) in the U.K. The total
contract value over the primary term of the contract is estimated to be
$74 million. Petro-Canada will have the option to extend the primary term of
the contract for up to three additional years with rates to be determined
based on a market mechanism. Should all option periods be utilized, the total
contract value could be as much as $220 million.
Additionally, the Company announced that Arcade Drilling AS has received a
fixed term extension with BP Amoco through late July 2000, for the "Paul B.
Loyd, Jr." and to early October 1999 for the "Henry Goodrich". BP Amoco
expects to utilize both the "Loyd" and the "Goodrich" for drilling operations
west of Shetland in the U.K. where the units are currently located. Under the
terms of the contract, BP Amoco may further extend the term of the "Paul B.
Loyd, Jr." for up to two additional six-month periods at mutually agreed
rates. Estimated revenues for the "Henry Goodrich" over the extension period
are $20.5 million; estimated revenues for the "Paul B. Loyd, Jr." over the
period are $66.2 million.
Paul B. Loyd, Jr., R&B Falcon Corporation Chairman and Chief Executive
Officer, stated, "We are very pleased to have been awarded these contracts for
the Arcade Drilling AS semisubmersibles. We have had discussions with
Petro-Canada for a number of years regarding the development of Terra Nova, so
it is particularly gratifying to have the "Goodrich" selected for the
drilling. We are also very pleased to extend our long working relationship
with BP Amoco on their west of Shetland development drilling program with both
the 'Goodrich' and the 'Loyd'."
R&B Falcon Corporation operates the world's largest fleet of marine-based
drilling rigs servicing the international oil and gas industry. Its fleet is
composed of 135 marine-based drilling units including the industry's largest
fleets of barge and jackup rigs, and a fleet of semisubmersibles and
drillships which is among the most capable in the world. R&B Falcon also
provides turnkey and integrated services and operates mobile production units,
internationally based land rigs and an offshore towing business.
SOURCE R&B Falcon Corporation
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http://www.rbfalcon.com
Company News On-Call:
http://www.prnewswire.com/comp/118988.html or fax,
800-758-5804, ext. 118988
CONTACT:
Charles R. Ofner of R&B Falcon Corporation,
281-496-5000
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