Diamond Offshore Drilling has settled a contract dispute with Brazilian firm Petrobras over the Ocean Valor rig.
Houston-based Diamond said it received an early termination notice for the contract from Petrobras in August 2016.
The agreement was originally expected to end in October 2018.
In September 2016, a Brazilian court sided with Diamond in its lawsuit against Petrobras, and suspended the termination.
The contract subsequently remained in effect and has not been terminated.
Yesterday, both sides agreed to a settlement.
Thee rig will be in an extended standby period retroactively from July 2017 to the end of September 2018 at a rate of $190,000 per day.
The rig will then continue under contract with Petrobras through to the end of September 2020 at a rate of $289,000 per day.
Diamond said it would book a one-off charge of $20millio0n in its fourth quarter results to account for the adjusted standby rate.
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