Page 8: of Maritime Reporter Magazine (May 15, 1974)

Diamond M Receives

Letters Of Intent For

Over $60 Million

Diamond M Drilling Company of

Houston, Texas, has announced that it has received letters of intent expressing the principal provisions of long-term drilling contracts re- lating to all four of its mobile drill- ing units which are now under con- struction.

Don E. McMahon, president and chief executive officer of Diamond

M, stated that the first letter of in- tent—with Gulf Oil Company-U.S. and providing for a one-year con- tract term—relates to the Diamond

M New Era, the company's second semisubmersible drilling vessel of the Diamond M-Korkut design.

Capable of operating in water depths up to 1,000 feet, the New

Era is scheduled for completion in

August 1974.

Mr. McMahon said that the sec- ond and third letters of intent— both with Amoco Production Com- pany and each providing for two- year contract terms—relate to the

Diamond M Epoch, another self- propelled semi of the Diamond M-

Korkut design capable of drilling in waters up to 1,000 feet deep, and the Diamond M Gem, a self-elevat- ing jackup mobile platform capable of drilling in waters up to 300 feet deep. Delivery of the Gem is ex- pected in September 1975, and the

Epoch is scheduled for November 1975.

The fourth letter of intent, said

Mr. McMahon—with Empresa Na- cionale del Petroleo (EiNAP) the national oil company of Chile and providing for a three-year contract term—relates to the Diamond M

Nugget, another Levingston-de- signed jackup capable of drilling in waters up to 300 feet deep. Deliv- ery of the Nugget is expected in

January 1976.

Mr. McMahon also said that de- finitive drilling contracts are now being negotiated. The company an- ticipates that its revenues from such contracts, commencing with the dates of delivery of the rigs, over the terms of the contracts, based on the initial day rates speci- fied in the letters of intent and without allowance for unusual rig downtime, will exceed $60.5 mil- lion.

In a related development, Mr.

McMahon announced that the com- pany has received a commitment from a bank for a three-year re- volving credit in the amount of $16 million. It is anticipated that such agreement, together with existing interim financing relating to the

New Era, will provide the com- pany's interim construction financ- ing requirements for all four rigs.

The company has received a pre- liminary commitment from the

Maritime Administration for a Title

XI guarantee of permanent finan- cing for the New Era, and has sub- mitted an application to the Mari- time Administration for guarantees to aid in the permanent financing of the other three drilling rigs.

It is anticipated that upon de- livery, the New Era, the Gem and the Epoch will operate domestical- ly, and that the Nugget will operate offshore Chile in the Strait of Ma- gellan.

Netumar International

Announces Changes

In Executive Staff

In a series of executive staff changes, Charles T. Mattmann, president of'Netumar International,

Inc., has announced the promotion of M. Joseph Kelly to executive vice president, while Courtland R.

Chapman Jr. and Edward T. Mur- phy were named vice presidents of the company.

Prior to their new appointments.

Mr. Kelly was Netumar Interna- tional vice president, Mr. Chap- man, assistant vice president, and

Mr. Murphy, traffic manager. 'In other executive personnel changes, Mr. Mattmann designated

Philip F. Walkley as assistant treasurer, and Joseph F. Munson, formerly traffic manager and man- ager, documentation, to the post of traffic manager.

The New York-based Netumar

International, Inc., acts as general agents for U.S., Canadian 'East

Coast, and Great Lakes ports for the Brazilian-flag line, Companhia de Navegacao Maritima Netumar.

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WORKING TOGETHER FOR YOU! 10 Maritime Reporter/Engineering News