Ocean Rig seals $1.3B drillship deal with Total

|About: Ocean Rig UDW Inc. (ORIG)|By:, SA News Editor

Ocean Rig UDW (ORIG +0.8%) says it firmed up a deal with Total (TOT) involving the 12K-ft. drilling depth Ocean Rig Skyros that will keep one of its newest deepwater drillships employed off Angola for six years; the contract is expected to commence in Q3 2015 and has an estimated backlog of $1.3B.

ORIG made news earlier this week after lining up a contract for the Eirik Raude; Evercore analysts view the deal favorably even though the ~$560K/day rate was a bit below estimates, given expectations for a softening rate environment and the rig's challenging competitive position as a 12-year old, fifth generation semi-submersible.