Anadarko Petroleum contracts to use Diamond Offshore's two new, ultra-deepwater drill ships for five years each, starting in late 2013, early 2014; deals expected to generate US$1.8B in revenue over a number of years

HOUSTON , May 17, 2011 () – Diamond Offshore signs drilling contracts with Anadarko with expected revenue of $1.8 billion

A subsidiary of Diamond Offshore has entered into two drilling contracts with Anadarko Petroleum Corp., the companies said Tuesday, and the deals are expected generate revenue of about $1.8 billion over a number of years.

The contracts, which will use Diamond Offshore's two new-build drill ships now on order, represent 10 years of contract drilling backlog. The ultra-deepwater drill ships are each contracted for five years starting in late 2013 and early 2014.

In addition, Anadarko and Diamond also said they've agreed to dismiss all claims related to the Ocean Monarch, a drillship in the Gulf of Mexico.

Anadarko tried to get out of its contract with Diamond Offshore Drilling Inc. for the rig through force majeure due to the six-month drilling ban in the Gulf following the oil spill.

Force majeure would free it from liability during a natural disaster or some other extraordinary event. Diamond fought to keep the contract in place.

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