Pemex developing new jack-up tenders - Diamond

Thursday, July 22, 2010

Mexico's state oil company Pemex is in the process of developing a new tender for jack-up rigs to be delivered before the end of the year, US drilling contractor Diamond Offshore's (NYSE: DO) senior VP of contracts and marketing, Bob Blair, said in a webcast.

Diamond executives met earlier this week with Pemex and discussed the tenders currently being developed.

"I think there are currently 18 rigs scheduled to come off contract before the end of this year, so certainly a lot of them will be renewed through this new tender process. We have not heard an exact number on new units that will be required, but there are indications that there will be some," Blair said.

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"Right now the big question is when these tenders will come out," he added.

Pemex has been granting short-term extensions to jack-ups under contract to keep the rigs at work.

"We feel like there are prospects for additional wells as well as keeping the existing fleet occupied," Blair said.

Diamond has one semisubmersible rig and two jack-up rigs operating in Mexico.