UPDATE1-Mercator charters out rig for $93,000/day

Fri Jun 6, 2008 1:52am EDT

MUMBAI, June 6 (Reuters) - Mercator Lines Ltd (MRCT.BO: Quote, Profile, Research) has chartered out a new offshore rig to a Singapore-based firm for $93,000 per day for three years, a top official who did not wish to be identified, told Reuters on Friday.

"We have a revenue-sharing model according to which, if the day rate of the charterer is in excess of $160,000 a day, then I'll also get a portion of that," the official said, but declined to name the charterer.

The Mint newspaper reported on Friday that Singapore-based Greatship Global Energy Services Pte Ltd hired a rig from Mercator Lines.

Greatship, the rig-owning, oil-drilling subsidiary of Great Eastern Shipping Company (GESC.BO: Quote, Profile, Research), has chartered the rig to save the cost of building a fresh rig, the paper said.

"All the expenses will be borne by the charterer. So, whatever we get is straight our profit," the Mercator official added.

Mercator stands to earn a little more than $100 million from the 3-year contract.

The company expects the delivery of the rig in March 2009 so it will contribute to revenues only from 2009/10, the official said.