SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934
Date of Report: October 31, 1996
READING & BATES CORPORATION
(Exact name of registrant as specified in its charter)
Delaware 1-5587 73-0642271
(State or other (Commission (I.R.S. Employer
jurisdiction of File Number) Identification No.)
incorporation)
901 Threadneedle, Suite 200, Houston, TX 77079
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (713) 496-5000
Item 7. Financial Statements and Exhibits
(c) Exhibits
Exhibit 99 - Press Release dated October 31, 1996 - Reading
& Bates announces a joint venture with Conoco to
build a DP Class 3 Drillship.
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf of the
undersigned thereunto duly authorized.
READING & BATES CORPORATION
By /s/T. W. Nagle
------------------------
T. W. Nagle
Executive Vice President,
Finance and Administration
(Principal Financial and Accounting
Officer)
Dated: October 31, 1996
EXHIBIT 99
Internet Address: http://www.rdgbat.com
FOR IMMEDIATE RELEASE Contact: Mr. Charles R. Ofner
Reading & Bates
(713) 496-5000
Teresa Wong
Conoco
(713) 293-1066
Reading & Bates and Conoco to Build DP Class 3 Drillship
October 31 1996, Houston, Texas.....Reading & Bates and Conoco
announced today the formation of a 50/50 venture to execute a $400
million, five-year drilling program in the ultra deepwater Gulf of Mexico.
The new company will carry out the program for Conoco.
To meet the challenges of drilling in ultra deepwater, the new company
has commissioned construction of a $200 million, world-class, dynamically
positioned drillship capable of drilling at water depths up to 10,000
feet. The vessel will carry the most stringent American Bureau of
Shipping requirement for dynamically positioning systems, DPS-3. To date,
no other drillship has been designed for an operating condition this
extreme to provide for such stringent layers of safety systems, redundancy
and reliability.
Samsung Heavy Industries of Korea has been awarded the contract to
construct the vessel. Delivery is expected in 1998.
The drilling program centers on 60 high potential blocks recently
acquired by Conoco for exploration in the Gulf of Mexico. Water depths
range from 2,000 to 9,000 feet. Thirty- three blocks were acquired during
the April bid round, and the remaining 27 in September.
"Having a drillship solely dedicated to Conoco's Gulf of Mexico
operations fits our strategy to resume a leadership role in exploring the
deepwaters of the region," said Conoco President and CEO Archie W. Dunham.
"This drillship, the venture with Reading & Bates and our previous
experience in deepwater exploration and production give us the tools and
expertise necessary to fully explore these blocks," he added.
Conoco and Reading & Bates complement one another, combining expertise
in marine and deepwater drilling operations, rig design and project
management and construction supervision. Conoco's marine department will
assist in the design of the vessel and help oversee construction, and
Reading & Bates will provide drilling services to the new venture.
Paul B. Loyd, Jr., Reading & Bates Chairman, President and CEO, stated,
"We are very pleased to enter into this significant agreement with Conoco
which will result in the construction and long-term deployment of a new
generation deepwater drilling vessel. Conoco has been one of our most
valued clients since the 1950s, and it is particularly satisfying to enter
into this innovative project as partners, thus enhancing value for both
companies' shareholders."<PAGE>
The 721-foot long, double-hulled drillship has the additional
flexibility to perform extended well test (EWT) and includes crude oil
storage and offloading capacity, provision for simultaneous drilling and
testing and eventual conversion to a floating production storage and
offloading (FPSO) vessel. The key to its deepwater performance is the
dynamic positioning system in which a specialized combination of seabed
and satellite positioning systems provide signals to computers that
control six high-powered thrusters capable of positioning the ship exactly
on target.
The vessel configuration and dynamic positioning thrusters also provide
efficient propulsion for high transit speed, giving the drillship
excellent utility for deployment between drilling theaters worldwide,
avoiding the considerable cost of tow and support vessels.
Conoco, the energy subsidiary of DuPont, is an integrated,
international energy company employing some 16,000 people in more than 30
countries.
Reading & Bates is a New York Stock Exchange listed company, providing
offshore drilling services throughout the world. Its wholly owned
subsidiary, Reading & Bates Development Co., provides technical,
construction and project management services and subsea and floating
production systems to the upstream offshore oil and gas industry
worldwide.
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