$326-MiIIion Order For 8 Rigs Awarded To Marathon Manufacturing

The Penn Central Corporation's Marathon Manufacturing Company has signed $326 million in contracts with the Rowan Companies, Inc. for the construction of eight offshore oil and gas mobile drilling rigs. Marathon's marine construction order backlog now totals 43 rigs, valued at approximately $900 million.

Included in the eight units for Rowan are two Marathon "Gorilla" jackup rigs designed for hostile environments.

Richard Dicker, chairman and chief executive officer of Penn Central, said: "Because of the continued strong demand for offshore rigs, we expect Marathon to set a record year in 1981." Marathon has six additional orders for offshore drilling rigs in various stages of negotiation preparatory to final contract signing.

It is expected that these contracts will be signed during the third quarter of 1981.

The first rig is scheduled for delivery to Rowan in September 1983 from Marathon's Singapore yard, with the last to be delivered in December 1985 from its Vicksburg, Miss., yard. The first Gorilla rig will be delivered in December 1983 from its Vicksburg yard, and the second Gorilla rig is scheduled for delivery from its Singapore yard in December 1984. Rowan's commitment to purchase these rigs has been generally known in the industry for some time.

Marathon's rig construction yards are located in Brownsville, Texas, Vicksburg, Miss., and the Republic of Singapore. Marathon's offshore drilling rigs are also constructed by three licensee yards: Davie Shipbuilding Limited, Lauzon, Quebec, Canada; Euroasia Shipyard Company Limited, Hong Kong; and U.I.E. Shipbuilding (Scotland) Limited, Clydebank, Scotland.

Marathon Manufacturing Company is one of the world's leading producers of mobile, offshore jackup drilling rigs; a manufacturer of materials handling equipment, electromechanical drive units and other energy-related products; and provides engineering services.

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