ARO Drilling Awarded Four Contracts from Saudi Aramco for Rowan Jack-ups

Apr 30 2018

HOUSTON, April 30, 2018 /PRNewswire/ -- Rowan Companies plc ("Rowan" or the "Company") (NYSE: RDC) expects that four of its idle jack-ups will be leased to ARO Drilling to fulfill four three-year contracts that ARO Drilling has been awarded by Saudi Aramco.

Tom Burke, President and Chief Executive Officer, commented, "Our partnership with Saudi Aramco in ARO Drilling and our operational track record in the Middle East have paved the way for these awards. We are pleased with this significant addition to our backlog. We believe these awards demonstrate the value ARO Drilling will create over the coming years."

ARO Drilling will lease the EXL I, EXL IV, Bess Brants and Earnest Dees (formerly named P-59 and P-60, respectively) from Rowan through a bareboat charter lease mechanism. The estimated commencement of the contracts is during the third quarter 2018 for the EXL I and EXL IV, and late 2018 or early 2019 timeframe for the Bess Brants and Earnest Dees. Rowan will prepare the rigs for operations, including all contractually required modifications, and then lease the rigs to ARO Drilling who will operate the rigs in Saudi Arabia. The contracts for the four rigs have been awarded and are in the process of being finalized.

For more information on the leasing structure between Rowan and ARO Drilling, please see the ARO Drilling Appendix of our Investor Presentation on our website, www.rowan.com.

Rowan is a global provider of offshore contract drilling services to the oil and gas industry with a fleet of 27 mobile offshore drilling units, comprised of 23 self-elevating jack-up rigs and four ultra-deepwater drillships. The Company's fleet operates worldwide, including the United States Gulf of Mexico, the United Kingdom and Norwegian sectors of the North Sea, the Middle East, and Trinidad. Additionally, the Company is a 50/50 partner in a joint venture with Saudi Aramco, named ARO Drilling, that owns a fleet of five self-elevating jack-up rigs that operate in the Arabian Gulf. Rowan's Class A Ordinary Shares are traded on the New York Stock Exchange under the symbol "RDC." For more information on the Company, please visit www.rowan.com.

Statements herein that are not historical facts are forward looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including, without limitation, statements as the anticipated use and financial returns associated with the rigs purchased from Petrobras. These forward-looking statements are based on our current expectations and are subject to numerous risks, assumptions, trends and uncertainties that could cause actual results to differ materially from those indicated by the forward-looking statements. Among the factors that could cause actual results to differ materially include oil and natural gas prices and the impact of the economic climate; changes in the offshore drilling market, including fluctuations in supply and demand; variable levels of drilling activity and expenditures in the energy industry; changes in day rates; ability to secure future drilling contracts; cancellation, early termination or renegotiation by our customers of drilling contracts; customer credit and risk of customer bankruptcy; risks associated with fixed cost drilling operations; unplanned downtime; risks related to our joint venture with Saudi Aramco, including the timing and amount of future distributions from the joint venture or contributions to the joint venture; cost overruns or delays in transportation of drilling units; cost overruns or delays in maintenance, repairs, or other rig projects; operating hazards and equipment failure; risks of collision and damage; casualty losses and limitations on insurance coverage; weather conditions in the Company's operating areas; increasing costs of compliance with regulations; changes in tax laws and interpretations by taxing authorities; hostilities, terrorism, and piracy; impairments; cyber incidents; the outcomes of disputes, including tax disputes and legal proceedings; and other risks disclosed in the Company's filings with the U.S. Securities and Exchange Commission. Each forward-looking statement speaks only as of the date hereof, and the Company expressly disclaims any obligation to update or revise any forward-looking statements, except as required by law.

 

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SOURCE Rowan Companies plc

Son Vann, Vice President, Corporate Development, sonvan@rowancompanies.com, 1 713 960 7655

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