Diamond Offshore Drilling Profile
Diamond Offshore Drilling, Inc. provides contract drilling services to the energy industry around the globe. The company has a fleet of 13 offshore drilling rigs, consisting of four owned drillships, seven owned semisubmersible rigs and two managed rigs.
Fleet
The company’s fleet enables it to offer services in the floater market on a worldwide basis. This asset class includes semisubmersible rigs and self-propelled drillships.
Markets
The principal markets for the company’s offshore contract drilling services are the Gulf of Mexico, including the United States, or U.S., and Mexico; Canada; South America, principally offshore Brazil; Australia and Southeast Asia; Europe, principally offshore the United Kingdom, or U.K.; East and West Africa; and the Mediterranean. The company actively markets its rigs worldwide. From time to time, the company’s fleet operates in various other markets throughout the world.
Offshore Contract Drilling Services
The company’s contracts to provide offshore drilling services vary in their terms and provisions. The company’s drilling contracts generally provide for a basic dayrate regardless of whether or not drilling results in a productive well. Drilling contracts generally also provide for reductions in rates during periods when the rig is being moved or when drilling operations are interrupted or restricted by equipment breakdowns, adverse weather conditions or other circumstances.
Rig Management and Marketing Services
In 2021, the company entered into an arrangement with an offshore drilling company whereby it would provide management and marketing services (or the MMSA) for certain of their rigs. The MMSA provided for a daily fixed fee based on status of the drilling rig, marketing fees based on a percentage of the earned dayrate of a drilling contract secured by it on behalf of the rig owner, a variable management fee and reimbursement of direct cost incurred.
The company may enter certain drilling contracts directly with a customer. The marketing arrangement for both rigs was terminated in 2023, and the charter agreement for the West Auriga was terminated in 2024. The West Auriga is expected to be returned to the rig owner upon completion of its drilling contract during first quarter of 2024.
Customers
The company provides offshore drilling services to a customer base that includes major and independent oil and gas companies and government-owned oil companies. For the year ended December 31, 2023, the company’s customers included BP, Woodside, and Oxy.
History
Diamond Offshore Drilling, Inc. was founded in 1953. The company was incorporated in Delaware in 1989.
