Hercules Offshore jackup rates jacked down by Saudi Aramco

Hercules Offshore has announced that it has received notice from Saudi Aramco reducing the dayrates of jackups Hercules 261 and Hercules 262 from $67,000 per day to $63,650 per day.

The two jackups are on five-year contracts, due to end in 2019. Originally, the rigs were contracted on rates of between $117,000 and $137,000, however in June 2015 these rates were negotiated down to just $67,000 per day under the threat of cancellation from Saudi Aramco.

Noble Corporation is also in negotiations with Saudi Aramco regarding rate reductions for four jackup rigs contracted to the Saudi oil major according to its latest fleet status report.