French oil giant Total has awarded NADL (North Atlantic Drilling) a contract extension for the West Phoenix semi-submersible rig with an estimated value of $62million.
The deal was struck after NADL agreed to a day rate reduction which spans from June until August of this year. The move shaves $16million off revenue potential.
The additional work will begin spring of next year and continue through until August 2016.
NADL said a portion of the revenue will be paid during the anticipated idle period from September this year, until the middle of March 2016, when work is expected to start.
Total will have the chance to market the rig for other alternate work during this seven month period.