Hercules Offshore nabs $420 million North Sea rig contract

HOUSTON, May 21 (UPI) -- U.S. rig company Hercules Offshore said it signed a $420 million contract with the North Sea subsidiary of Maersk Oil to develop the region's Culzean oil field.

"This opportunity further demonstrates our worldwide capabilities and expands our operational footprint to the North Sea with a leading operator in the region," Hercules Chief Executive Officer John Rynd said in a statement Tuesday. "The rig will operate in the central North Sea to develop Maersk Oil's high profile Culzean field."

The rig will be rated for operating in 400 feet of water and have accommodations for up to 150 personnel.

Danish energy company Maersk confirmed a discovery at the Culzean field in 2011. At the time, it said the field may be "one of the most promising" finds made in the British waters of the North Sea in recent years.

Maersk said Wednesday its first quarter 2014 shares of oil and gas production was 256,000 barrels of oil equivalent per day, a 7 percent increase year-on-year.