HOUSTON, Aug. 26 /PRNewswire/ -- R&B Falcon Corporation (NYSE: FLC)
announced today that its wholly owned subsidiary, RBF Exploration Co., and
Shell Deepwater Development Inc. have executed a firm five year drilling
contract for the provision of a new generation ultra deepwater moored
semisubmersible, the "RBS-6". The innovative design of the "RBS-6" builds on
concepts pioneered in the construction of the fourth-generation
semisubmersible "Jack Bates" and was developed by R&B Falcon's engineering
department in conjunction with the engineering subsidiary of Ishikawajima-
Heavy Industries Co., Ltd. who were the builders of the "Jack Bates" which was
also contracted to Shell. The new semisubmersible will have a variable deck
load of 6000 metric tons and can operate in a moored configuration in up to
8000 feet water depth. During the initial contract period, the rig will
operate in the U.S. Gulf of Mexico, but the design is suitable for worldwide
service, including the harsh environments in the North Sea and west of
Shetland.
The five-year contract is expected to provide revenues of approximately
$345 million against an expected construction cost of $255 million, exclusive
of capitalized interest and other non-hardware costs. The drilling contract
is structured to give R&B Falcon the flexibility to utilize off balance sheet
financing by using the Shell Deepwater Development Inc. drilling contract as
the primary financing collateral. Shipyard delivery is scheduled for November
1999.
Steven A. Webster, the Company's President and Chief Executive Officer,
said, "Although a binding letter of intent for the drilling contract award has
been in place for some time, we are very pleased to have the final contract
executed. We believe this illustrates Shell's continuing commitment to the
ultra deepwater and their desire to maintain a fleet which is technologically
at the cutting edge. Accordingly, we are exceptionally proud to have been
selected to provide this newest generation semisubmersible which we believe
will be one of the most advanced units ever constructed. It is our belief
that our technological expertise in ultra deepwater design and operations were
responsible for the award of this important contract. Our project team,
Shell's team and builder Hyundai Heavy Industries Co. Ltd. have done a great
job in keeping this extremely complex project on time and on budget since work
began in mid 1997. The rig will be delivered in accordance with the
originally projected target in November 1999. Our company has had a close
relationship with Shell companies for over thirty years, and we are
particularly pleased to continue that relationship with this exceptional
drilling unit."
R&B Falcon Corporation operates the world's largest fleet of 115 marine-
based drilling rigs for the international oil and gas industry consisting of
twelve drillships (including seven under construction), eleven semisubmersible
rigs (including two under construction), 26 jackups, three submersible rigs,
two tender rigs, 60 barge drilling and workover rigs and a floating production
vessel. R&B Falcon actively markets 101 of these units in the offshore and
inland waters worldwide. R&B Falcon also operates a leading offshore and
inland marine towing and service business. On August 21, 1998, the Company
announced execution of a definitive merger agreement with Cliffs Drilling
Company which will result in addition of sixteen jackups, three self-contained
platform rigs, eleven land rigs and four mobile offshore production units
(MOPU's) to R&B Falcon's fleet.
SOURCE R&B Falcon Corporation
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Related links:
http://www.rbfalcon.com
Company News On-Call: http://www.prnewswire.com or
fax, 800-758-5804, ext. 118988
CONTACT:
Charles R. Ofner of R&B Falcon Corporation,
281-496-5000
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