Rig Order News

South Korean shipbuilding giant Samsung Heavy Industries must pay $411 million to offshore drilling contractor Stena Drilling, a London arbitration tribunal has ruled.The spat between the two companies began after Stena Drilling in 2017 terminated the order for the construction of the harsh environment semi-submersible drilling rig Stena Midmax.Stena Drilling had ordered the rig in June 2013, with the delivery expected in March 2016. Citing excessive delay, Stena Drilling on June 1, 2017, terminated the rig order.

Singaporean rig builder Sembcorp Marine Ltd swung into the red in the second quarter, and cautioned a trend of negative operating profit would continue in the near term as overall business volume remains low.It turned in a loss of S$55.6 million ($40.68 million) for the three months ended June, compared with a profit of S$5.1 million in the same period a year ago.Sembcorp Marine, majority owned by industrial conglomerate Sembcorp Industries Ltd, saw its revenue more than double to S$1.63 billion due to revenue recognition on delivery of some rigs.

Following the Letter of Intent signed by Keppel Offshore & Marine Ltd through its wholly-owned subsidiary, Keppel FELS Limited, with Awilco Drilling PLC, Keppel has secured the contract to construct a mid-water semisubmersible (semi) drilling rig for harsh environment use worth about $425 million. As part of the transaction, Awilco has independent options to order up to another three similar rigs to be exercised within 12, 24 and 36 months respectively. The prices of the three additional rigs are subject to cost adjustments and will only be finalised and announced separately if and when the options are exercised. Scheduled for completion in 1Q 2021, the rig will be built to Moss Maritime's CS60 ECO MW design.

Reuters - Yangzijiang Shipbuilding Holdings Ltd, a top Chinese shipbuilder, plans to build more mega container ships for shipowners eager to cut operating costs. Yangzijiang is China's third-largest listed shipbuilder by market capitalisation and has boasted profit margins that dwarf those of domestic and overseas peers. Yangzijiang is ready to hand over its first mega container ship in March, which can move around 10,000 standard twenty-foot (TEU) containers, and is planning to build vessels that can handle up to 18,000 boxes.

Reuters –  Yangzijiang Shipbuilding Holding Ltd said its fourth-quarter net profit dropped 8 percent on the year, as income from shipbuilding decreased. Privately-controlled Yangzijiang is China's third-largest listed shipbuilder by market capitalisation. It reported a fourth-quarter net profit of 746.3 million yuan ($121.85 million), and a full-year net profit of 3.1 billion yuan, slightly higher than Thomson Reuters SmartEstimate of 3.0 billion yuan. The pre-tax margin for the year stood at 34.5 percent, up from 32.9 percent a year earlier, dwarfing an industry median of 10 percent, according to Thomson Reuters data. The company's shipbuilding business posted a 43 percent gross margin, due to high-margin contracts secured before the global financial crisis.

Sembcorp Marine's subsidiary PPL Shipyard has secured a repeat order to build a third Pacific Class 400 jack-up rig worth US$211.5-million from Perisai (L) Inc, a wholly-owned subsidiary of Perisai Petroleum Teknologi Bhd. Scheduled for delivery in the third quarter of 2016, this third jack-up rig will be built based on PPL Shipyard’s proprietary Pacific Class 400 design with similar specification as the first and second jack-up rig units, named Perisai Pacific 101 and Perisai Pacific 102.

Keppel FELS Limited has secured a repeat order from a subsidiary of Transocean Ltd. (Transocean) to build 5 KFELS Super B Class jackup rigs for US$1.1 billion. The rigs are scheduled to be delivered progressively from 1Q 2016 to 3Q 2017. In addition, Transocean has options to build up to another five similar jackup rigs with Keppel FELS. Tailored to suit Transocean's requirements, the KFELS Super B Class rigs are designed to operate in 400 feet water depth and drill to 35,000 feet.

Northern Offshore, Ltd. subsidiaries have executed contracts for the construction of two LeTourneau Super 116E Class jackup drilling rigs, with a priced option for the construction of two additional rigs of the same design. Northern Offshore say that the yard contract price is less than US$180 million, with favorable tail-end-heavy payment terms. Delivery of the rigs is expected during the first and third quarters of 2016, respectively. Construction will be carried out by an experienced and well qualified [un-named] Chinese shipyard. Gary W. Casswell, president and chief executive officer of Northern Offshore said, "This is a turning point for our company…

The new ultra harsh environment jack-up rig, 'XL Enhanced 4', is to be built at the Daewoo Shipbuilding and Marine Engineering (DSME) shipyard in South Korea with delivery scheduled for mid-2016. The total project cost for the rig is USD 650m including a turnkey contract with the yard, owner furnished equipment, project management and capitalised interest. The contract with DSME includes priced options for delivery of up to two additional units with delivery in 2016/2017. The…

Sembcorp Marine's PPL Shipyard secures US$220.5-million contract to construct a jack-up rig for Bot Lease Co. BOT Lease Co., Ltd. is a leasing company of The Bank of Tokyo-Mitsubishi UFJ which is under the umbrella of Mitsubishi UFJ Financial Group. The contract price is US$220.5 million (excluding cost of BOTL’s project management team and pre-operations cost). Scheduled for delivery at end January 2015, the new rig will be built based on PPL Shipyard’s established proprietary Pacific Class 400 design. This design represents the latest generation of high-specification jack-up rigs that are capable of operating in deeper waters of 400 feet and drilling high pressure and high temperature wells to depths of 30,000 feet.

Hyundai Heavy Industries (HHI) announced that it won a $750 million order to build a semisubmersible drilling rig for Diamond Offshore. The drilling rig, measuring 123 meters in length and 96 meters in width, can operate in waters 3,000 meters deep with a drilling range of 12.2 kilometers from the sea’s surface. The rig is scheduled to be delivered by November 2015. english.hhi.co.kr

Keppel FELS Ltd, a wholly-owned subsidiary of Keppel Offshore & Marine, has secured three contracts worth a combined US$300 million from repeat customers. The contracts are for the construction of a KFELS B Class jackup rig from Star Drilling Pte Ltd, a Singapore-based company promoted by the companies of D.P. Jindal Group; the upgrading of the semisubmersible ENSCO 5006 for Ensco PLC (Ensco); and the upgrading of the semisubmersible Ocean Patriot for Diamond Offshore. Wong Kok Seng, Managing Director (Offshore) of Keppel O&M and Managing Director of Keppel FELS said, "We are glad to be able to continue from 2012 into 2013 by adding more contracts to our orderbook. Even as we add to our new orders, we continue to deliver our projects safely, on time and on budget.

COSCO Corp. (Singapore} subsidiary COSCO Qidong Offshore Co to build the accommodation rig for European joint venture company. The contract, valued at US$200-million.is for the construction of a harsh environment semi-submersible accommodation rig for Axis Offshore, a joint venture between Danish shipowner, J. Lauritzen and Norwegian private equity fund, HitecVision. Signatory of the contract was COSCO Qidong Offshore Co., Ltd, a subsidiary of the Company’s 51% owned subsidiary, COSCO Shipyard Group Co., Ltd Delivery is scheduled for the first quarter of 2015.

Jiangsu Yangzijiang Offshore Engineering Co. Ltd. signs contract for the rig with Creon associate company Explorer 1. The directors of Creon the resources infrastructure investment company, announce that Jiangsu Yangzijiang Offshore Engineering Co. Ltd. has entered into a contract valued at US$170-million with Explorer I Limited to construct and deliver a Le Tourneau Super 116E Class design self-elevating mobile offshore jack up drilling rig. Delivery of the Rig is anticipated in the second quarter of 2015. It will be built to ABS Classifications and capable of drilling to 30,000 feet in sea depths of up to 350 feet. The rig will be fully equipped with state of the art drilling equipment and will have accommodation for 120 people.

COSCO Singapore Chinese subsidiary COSCO Qidong Offshore wins contract from Axis Offshore. The contract valued over US$200-million from Axis Offshore, a joint venture between Danish shipowner, J. Lauritzen and Norwegian private equity fund, HitecVision, is to build a harsh environment semi-submersible accommodation vessel. This rig will be built to Global Maritime’s design, GM500A and will provide accommodation for 500 persons. It will be equipped with a DP3 dynamic positioning system and is designed to operate in the harsh environment in the North Sea. The rig is scheduled for delivery in Q1 2015. The parties intend that the contract will be made effective within 3 months from the date of signing.

Keppel FELS Limited's repeat customer, Asia Offshore Drilling Limited ("AOD") has exercised its first of two options to build a KFELS B Class jackup rig worth US$184 million. The effectiveness of this first option is subject to AOD or its wholly owned subsidiary entering into a construction contract with Keppel FELS and fulfilling certain conditions precedent. This rig will be AOD's third with Keppel FELS and is scheduled for delivery in 3Q2013. AOD, established by Singapore listed Mermaid Maritime Public Company Limited ("Mermaid"), had placed orders for two KFELS B Class jackup rigs in December 2010. Last week, AOD announced the completion of a private placement which will result in Mermaid and Seadrill Ltd. each having a 33.75% equal shareholding ownership in AOD. M.L.

Keppel FELS Limited (Keppel FELS) has secured a contract with Vision Drilling Pte Ltd (Vision Drilling), a wholly-owned subsidiary of Dynamic Offshore Drilling Limited (Dynamic Offshore Drilling), to build its first KFELS B Class jackup drilling rig for US$180 million. Slated for delivery in 1Q2013, the rig will be able to operate in water depths of 350 feet with a drilling depth of 30,000 feet and accommodate 120 men. Dynamic Offshore Drilling has the option to build an additional rig to be exercised before 3Q2011.

Keppel FELS Limited (Keppel FELS) has secured contracts to build two high-specification KFELS B Class Bigfoot jackup rigs from returning customer Gulf Drilling International Ltd. (q.s.c.) (GDI) of Qatar, worth about US$393 million. These latest contracts follow closely after Keppel FELS was awarded a newbuild jackup rig contract by one of GDI's Shareholders, Japan Drilling Company, in March this year. Scheduled for delivery in the third quarters of 2013 and 2014, the two latest rigs mark GDI's first new orders in six years, and will increase the company's jackup fleet count to seven units.

Halliburton Productos Ltd. Production Storage and Offloading facility (FPSO). This contract, once it is finalised, will be a major step for FELS Setal, as the last time any work of this magnitude was performed in Brazil was over four years ago. It is expected to re-vitalise the offshore and marine fabrication industry in Brazil, with projections to create thousands of new jobs for the state of Rio de Janeiro. Brazilian PEM Setal respectively. It is operating from a 360,000 sq. Angra dos Reis, about two hours south of Rio de Janeiro. deployment in deep waters of the North Sea, Gulf of Mexico and Southeast Asia. subsidiary, AMFELS secured a $76 million rig order from Chiles Offshore. Sedco Forex.

Keppel FELS Limited (Keppel FELS) has secured a contract worth about $210 million from Japan Drilling Company (JDC) to build a KFELS Super B Class jackup rig. Slated for delivery in the first quarter of 2013, the rig will be JDC's first newbuild rig order in six years and Keppel FELS' first for JDC. Mr Wong Kok Seng, Managing Director of Keppel FELS, said, "JDC has been very specific with the requirements from their new jackup building programme. We are honoured that they have selected our proven KFELS Super B Class design to be customised to their needs.

Keppel FELS Limited (KFELS), the offshore arm of Keppel FELS Energy & Infrastructure Ltd. (Keppel FELS), has signed a contract with Chiles Offshore LLC (Chiles) to build a $110 million jack-up rig of KFELS MOD V "B" design, cantilevered jack-up rig. Work is expected to start immediately, with delivery scheduled for around the second quarter of 2002. This rig is one of KFELS' ultra-premium proprietary jack-up designs which has been modified in this case for non-harsh environment usage. It is designed to be able to exceed the operating capabilities of conventional non-harsh environment jack-up rigs and will be built to a leg length of 475 ft., with an option to extend this to 545 ft. "Our goal is to augment our position in the ultra-premium, deep-water jack-up market niche.

Keppel FELS Limited (Keppel FELS) secured a $114 million contract from Odfjell Drilling to build a KFELS B class jackup rig. The contract includes an option for another two units, with price adjustment for increase in steel prices and currency fluctuations. The design of the jackup rig is proprietary to Keppel Offshore & Marine (Keppel O&M), the parent company of Keppel FELS. It is capable of operating in 350 feet water depths, drilling down to 30,000 feet and accommodating 110 men. The new rig is scheduled for delivery in the second quarter 2006.

Gulf Copper has been awarded a contract for the modification of ENSCO 83, a jackup rig owned by a subsidiary of Ensco International (NYSE:ESV). The fifth Ensco rig to enter Gulf Copper’s Galveston shipyard since Hurricane Ike, the ENSCO 83 is undergoing upgrades and refurbishment before it mobilizes from the U.S. Gulf of Mexico to work for PEMEX in Mexico. “Ensco International has played a major role in the post‐Ike restoration of the Galveston economy,” stated Steve Hale, President of Gulf Copper.