Keppel Tapped to Build $126M Rig

Tuesday, July 27, 2004
Sinvest ASA of Norway has, through a subsidiary of its wholly owned Singapore company Deep Drilling Invest Pte. Ltd., exercised an option with Keppel FELS Limited (KFELS) to build another KFELS Super B class jackup at $126 million on the back of rising deep gas drilling activities.

Their decision came after successfully raising funds through a convertible loan to facilitate the exercise of one of the company’s construction options for deep gas drilling.

In February 2004, the Skeie Group entered into option agreements with two rigbuilders when it contracted the shipyards to construct a jackup each. One of rigbuilders was Keppel FELS which offered its KFELS Super B class design.

Explaining the decision, Mr Bjarne Skeie, Executive Chairman of Sinvest ASA, said, “We have chosen to build another rig with Keppel FELS because the market interest in the KFELS Super B class jackup rig is strong.

“The KFELS Super B class jackup is a more superior deep gas drilling rig compared to other competing rigs, with its proven performance in the hookload, mud system and power generator capabilities.”

Construction of the second rig is expected to be completed in around 26 months.

Mr Tong Chong Heong, Managing Director/Chief Operating Officer of Keppel Offshore & Marine Limited and Managing Director of Keppel FELS, said, “We have anticipated a growing demand for deep gas drilling jackups, and have committed resources to develop the KFELS Super B design to meet this demand.

“This investment is proving to be a right one. The KFELS Super B is set to become the new benchmark for ultra deep well drilling rigs in deeper waters and harsher conditions.”

Since its introduction in 2000, four KFELS B class jackups have already been gainfully deployed in different parts of the world, with five more, including this project, currently under construction.

The KFELS Super B class rig to be built is a further enhancement of the standard KFELS B class. It will have the capability of operating in water depths of up to 350 feet and ultra deep drilling of down to 35,000 feet. It is fully High Pressure and High Temperature compliant with its 15,000 psi and 130 degrees Celsius rating.

The rig is arranged for effective usage in production drilling mode from new or existing wellhead platforms. Its cantilever skidding system enables the well centre to be moved within a 70x30 ft envelope with full set-back. The rig is further arranged with the capability to allow skid-off to an adjacent wellhead platform.

It is further designed to allow jacking with full pre-load in a single stage operation, in order to minimize time lost during jacking and pre-load operations.

The demand for jackups such as the KFELS Super B class rigs is driven by a growing interest in natural gas prospecting in deeper waters to ease the tight market situation in the demand and supply of natural gas in the short to medium term.

This tight situation is created by a decline in supply due to the depletion of existing shallow water reserves and the lack of new exploration and production (E&P) initiatives in the previous two decades.

Meanwhile, demand for natural gas continues to rise. In the US market alone, demand for natural gas is expected to grow by approximately 2% per annum. Prices of natural gas in the country, which accounts for around 25% of the world’s total consumption, have doubled compared to a decade ago.

Maritime Reporter March 2014 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

Ship Repair & Conversion

Two Navy Contracts for GD Bath Iron Works

Included in the latest listing of contracts awarded by the US Department of Defense, Navy, are two contracts with General Dynamics Bath Iron Works, Bath, Maine.

Fred. Olsen Rig Upgrade Delayed; Costs Eyed

Rig to cost $195 mln to upgrade vs earlier $125 mln; upgrade to be completed in June vs earlier view April. Firm's down 5.6 percent. Norwegian rig firm Fred.

Grounded Navy Ship Repaired, Returns to Fleet

The Oliver Hazard Perry-class frigate USS Taylor (FFG 50), homeported in Mayport, Fla., successfully completed post-repair sea trials, April 21, the U.S. Navy reported.

Offshore

Safety the Focus as Heavy Lifting Picks Up

Modern heavy lift capabilities are crucial for safe, efficient operations offshore Heavy lift operations offshore are an awe-inspiring feat, but an operation that

Azeri Shipyard, BP Sign Vessel Construction Contract

Azeri state energy company SOCAR's shipyard and British oil major BP have signed a $378 million deal to design and build a subsea construction vessel for the Shah Deniz II gas project,

BP Gulf Spill Trial Set For January

The high-stakes penalty phase of BP's trial over its role in the 2010 U.S. Gulf of Mexico oil spill will start next January, court officials said on Tuesday,

 
 
Maritime Careers / Shipboard Positions Maritime Standards Naval Architecture Navigation Pipelines Pod Propulsion Port Authority Ship Simulators Sonar Winch
rss | archive | history | articles | privacy | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.1577 sec (6 req/sec)