DryShips' wholly-owned subsidiary Ocean Rig ASA has received a Letter of Award from Petrobras for a 3-year period employment contract for exploration drilling in the Black Sea.

The 3 year term includes mobilization, disassembly and reassembly of the derrick structure for transit through the Bosporus Strait. The contract is expected to commence in direct continuation from the current contract with Shell. The contract value is approximately US $630 million including an estimated 60 days of mobilization, disassembly/reassembly of the derrick structure and an incentive bonus of 8%.

George Economou, Chairman and Chief Executive Officer of DryShips said, "We are very pleased to be part of this exciting exploration project with Petrobras and see this as an excellent opportunity to expand our relationship with Petrobras, the biggest end-user of ultra-deepwater units in the world. This will enhance the cash flow stability and visibility of our UDW drilling unit. This recent fixture is testament of the strong fundamentals of the ultra-deepwater drilling segment which is underpinned by the large exploration and production projects already under way by oil majors and national oil companies."

Tags: Ocean Rig ASA, Petrobras