Pride rejigs drill deal

US offshore owner Pride International has rubber stamped a client's request to rejig a contract tied to one of its newest deepwater drillships.

The Deep Ocean Ascension.

New York-listed Pride says BP Exploration & Production (BP) will shell-out $360,000 per day for the 40,000-ft drilling depth Deep Ocean Ascension (built 2010).

The standby rate will keep Pride fed while BP waits for the US government to axe the Gulf of Mexico (GoM) drilling moratorium.

"This special standby dayrate will remain in effect until the earlier of 1 April 2011 or the date the rig begins mobilization to its first drilling site, either within or outside the US Gulf of Mexico," Pride said in a statement.

The initial contract for the deepwater unit had BP paying $489,000 per day for five years.

But like many GoM drilling deals, Pride's drillship pact hit a snag following the Deepwater Horizon disaster.

While the new contract may take a toll on Pride's pocket, some equity analysts have blessed the resolution.

"We view this agreement as a positive considering the alternative of force majeure," Oppenheimer & Co analyst Scott Burk said in a note to clients.

Shares in Houston-based Pride jumped 2.22% to hit $25.26 in midday trading.

The company controls six drillships on top of its fleet of jack-up and semisubmersible drilling units.

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