Deepwater drilling contractor Diamond Offshore Drilling has announced plans to retire and scrap three out of its eight drilling rigs citing weak demand due to a decline in crude prices globally.
In the first-quarter of this year, the US-based company recorded an impairment charge of $319m for eight rigs, including the rigs that are being retired.
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Cold-stacked in the US Gulf of Mexico, the three rigs include the mid-water semisubmersibles Ocean Saratoga, Ocean Worker and Ocean Yorktown.
Ocean Ambassador, Ocean General, Ocean Lexington, Ocean Nomad and the drillship Ocean Clipper Other are the other rigs that are included in the impairment group.
During the quarter, the company reported a net loss of $256m compared with net income of $146m in the first quarter of 2014.
Revenues stood at $620m against first quarter 2014 revenues of $709m.
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By GlobalDataIn the quarter, Diamond Offshore Drilling also incurred a charge of $4m after tax related to restructuring and employee separation-related costs.
Diamond Offshore Drilling president and chief executive officer Marc Edwards said: "We have continued to implement cost savings measures while maintaining our focus on safe operations and delivering performance for our clients.
"During the second quarter, our next two newbuild drillships will begin working in the Gulf of Mexico, and the yard will complete our fourth drillship, which will also be headed to the US, where all four of drillships will work on term contracts extending into 2019 or beyond."
