Xcite Energy, a fully owned subsidiary of Xcite Energy Resources, has announced that its existing rig contract with British American Offshore, a subsidiary of Rowan Companies has been amended.
The amendment is with respect to the modification in the timing allowed to provide a jack up drilling unit for extreme environments, which would be more suitable for the Phase 1B of the development of Bentley field.
The initial contract provided for a fixed time period of 240 days for the development of Phase 1A beginning starting from the day at which the rig arrived at the Bentley field location. After this start date the contract provided for six options to extend the period by one year consecutively. The first one year extension however has to be implemented within 120 days of the start of the 240 day period. The amendment that has been applied now allows the shortening of the 240 day period for the development of Phase 1A so that the company incurs lesser financial commitment if the development is completed earlier.
According to the amendment an appropriate rig from the fleet owned by Rowan Companies can be recalled within 240 days after the development of Phase 1A is completed. The rig, which has been called should be delivered between a period of 14 to 20 months from the time the call option was implemented so that it matches the development and installation at Phase 1B at Bentley field.
Source: http://www.rns.com