Diamond Offshore to Shift Ocean Endeavor Rig to Egypt

Diamond Offshore to Shift Ocean Endeavor Rig to EgyptDiamond Offshore Drilling Inc. will shift its deepwater Ocean Endeavor rig to Egypt as indecision rises up in regards to the contested drilling suspension in the Gulf of Mexico, the firm said on Friday.

The Houston-based drilling contractor was handed with an early termination fee of $31 million from Devon Energy Corp., which is the operator of the rig, and will shift the Ocean Endeavor abroad, where it has struck a new deal, which terminates on June 30, 2011, with Burullus Gas Company S. A. E.

Larry Dickerson, Chief Executive of Diamond Offshore, said in a news release that the firm is actively seeking international opportunities, so as to keep its rigs completely full with working people.

The great number of U. S. jobs that will be lost due to this rig relocation is definitely something that the firm regrets.

The new rig agreement and the untimely termination of fee will be able to create $100 million in income for Diamond Offshore.

The transfer of the rig highlights the fiery situation in the U. S. Gulf that has developed ever since the deadly calamity aboard Transocaen Ltd.'s the Deepwater Horizon rig resulted in an enormous oil spill and a six-month deferral on deepwater drilling movement.