Saudi Aramco has agreed a deal with the US’ Hercules Offshore that will see the day rate for three jack-up rigs slashed by 50 per cent.

The state-owned oil major originally issued a contract termination for one of the rigs, but has reached a compromise agreement with the company. Aramco will now pay $67,000 a day for the three rigs for the period of January 1, 2015 to December 31, 2016. This is down from the original deal of $135,000 a day.  

MEED reported in February that Aramco was asking rig providers for huge discounts on rigs, but the figure being cited at the time was only 25 per cent. The new deal represents a much larger figure and an indication of the aggressive cost savings Aramco is now pursuing.