During the fourth quarter:
- The jack-up AOD III received a three year contract extension from Saudi Aramco expiring in December 2019. The extension will add approximately $112.5 million in contract backlog.
- The West Phoenix was awarded a 90 day contract with Total in the UK, West of Shetland. The backlog for the contract is estimated at $17 million.
- The West Saturn was awarded a one well contract at $225,000 per day with ExxonMobil in Liberia. This was a direct continuation of its contract with ExxonMobil in Nigeria. This resulted in an estimated total contract backlog increase of $9 million.
- Cardon IV exercised their option on the West Freedom to extend the non-operating flotel period by three months to March 31, 2017. Operations are expected to recommence on April 1, 2017, and will extend to September 30, 2017, at a rate of $225,000 per day.
- We agreed to reduce the total remaining contract value on the West Jupiter by $144 million. The duration of the contract remains unchanged. As part of the agreement, the contract has been amended such that the compensation due in the event Total elects to terminate for convenience would ensure that the Company's backlog remains materially intact. The West Jupiter is currently contracted with Total in Nigeria until December 2019.
Additionally, during the first quarter to date we have concluded the following commercial agreements:
- The West Phoenix was awarded a one well contract with Nexen Petroleum. The contract will run in direct continuation from its existing contract with Total and the total backlog is estimated to be $17 million.
- The West Elara was awarded a one well extension plus one option well from Statoil. The backlog for the firm well is estimated to be $10 million.
- The West Mischief received a contract termination notice from NDC and is expected to end operations in August 2017 as opposed to the original contracted December 2017 date. The total backlog impact is a $9 million decrease.
- West Cressida was awarded a two month extension of its existing contract with PTTEP Thailand at the original contract day rate of $64,500 per day. The contract now expires in April 2017.
- SeaMex, the Company's 50% owned JV, agreed a 29 month contract extension at the current contracted day rates for each of the five jack-up rigs contracted with Pemex in Mexico. Simultaneously SeaMex agreed to provide Pemex with a discount to contracted rates for 22 months effective November 2016. The net impact on contract backlog for SeaMex was an increase of $580 million.
- The West Saturn was awarded a one well contract with Ophir Cotê d’Ivoirein Cotê d’Ivoire. Commencement is expected in the second quarter of 2017. Total contract backlog is expected to be approximately $5.5 million based on an estimated contract duration of 35 days.
Financial Performance Summary: 4Q16 underlying
* Underlying is defined as reported results, adjusted for non-recurring items and disposals