SBI Offshore Negotiating Contract for Rig Builds

By Michelle Howard
Wednesday, August 27, 2014

SBI Offshore Limited has announced that the Middle East-Chinese consortium, which recently awarded its subsidiary a contract to provide design and engineering services for a jack-up drilling rig, has commenced discussions with the SGX Catalist-listed company to build up to five units of the rig.

SBI Offshore said that it had commenced negotiations with the consortium about a week after securing from the latter the $24 million contract to design a rig that will meet American Bureau of Shipping Classification (A1 Self-Elevating Drilling Unit) requirements. The consortium, whose members are involved in oil and gas activities, has indicated that the rigs will eventually be deployed in the Middle East and various parts of Asia for operation in water depths of up to 110 meters. The price of each rig will depend on its specifications, equipment type and make, fabrication yard, delivery and financing terms.

If the negotiations are successful, the group expects to build the first rig in a regional shipyard, possibly in China or Singapore. Each rig will take at least two years to build and all the rigs are expected to be completed in about six years.

Subject to the finalization of the rig’s specifications under the design and engineering contract as well as the confirmation of the construction start date of the first rig, the group expects financial contributions – from rig-building, project management services and sale of equipment – to commence in the financial year ending December 31, 2015. As announced on July 2, 2014, the group has formed a 70%-held joint venture (JV), Axon Rig Concept and Design Asia Pte. Ltd. (ARCDA), with U.S. oilfield equipment manufacturer, Axon Energy Products Inc., to provide integrated solutions for drilling equipment and systems. Apart from the JV, the group will continue to add experienced rig and drilling design and equipment engineers to its management team.

“SBI Offshore has entered a new phase of growth. The recently concluded design and engineering contract serves as a catalyst for the Group to secure larger onshore and offshore oil and gas projects. We are hopeful of a successful outcome in our negotiations for the Rigs and intend to secure more of such higher-value projects in the future,” said Chan Lai Thong, Executive Chairman of SBI.

Leveraging on ARCDA, the group is actively discussing with various yards in the region to offer its drilling equipment systems and services, as well as with energy resource players in the Middle East and the former Soviet Union for possible collaborations.

sbioffshore.com
 

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

Shipbuilding

Damen Outfitting First of Nine Bahamas Patrol Boats

The first of nine Damen Stan Patrol 3007s ordered by the Royal Bahamas Defense Force has arrived at Damen Shipyards Gorinchem in the Netherlands for outfitting.

Liquefaction Terminals to Dominate LNG Capital Expenditure

Capital expenditure (Capex) on global LNG facilities is expected to total $259 billion (bn) over the period 2015-2019, with investments expected to be 88% larger

New Chinese Shipyard Launches First Ship

The new shipyard facility of Honghua Offshore Oil & Gas Equipment Company in Jiangsu, China, has launched its first ship, an IMT982 Platform Supply Vessel. The vessel,

News

Port Workers in Argentine Grain Hub End Strike

Port workers in part of the Argentine grains hub of Rosario lifted a work stoppage on Friday, only a day after they went on strike over demands for higher year-end bonuses, a union official said.

Madsen to Chair Norway’s Research Council Executive Board

Henrik O. Madsen appointed chairman of the executive board of the Research Council of Norway   DNV GL president and CEO Henrik O. Madsen was appointed as chairman

Larger Tankers May Offer Better Return Chances

Investors looking for returns in the tanker markets can invest their capital in a variety of ways. Should an owner invest in a VLCC or an Aframax? How about an

Classification Societies

Madsen to Chair Norway’s Research Council Executive Board

Henrik O. Madsen appointed chairman of the executive board of the Research Council of Norway   DNV GL president and CEO Henrik O. Madsen was appointed as chairman

DNV GL Targets Safer Approach to Subsea Lifting

The completion of a joint industry project (JIP) to improve existing standards and regulations around subsea lifting operations has resulted in a new recommended practice (RP).

LR Supports Chinese Recycling Yards' EU Application

LR’s initial verification of the Ship Recycling Facility Plans for both Zhoushan Changhong International Ship Recycling Co. Ltd. and Jiangyin Xiagang Changjiang

Middle East

Libyan State Oil Firm NOC Will Remain Independent

Libya's Tripoli-based state firm National Oil Corp (NOC) will remain independent, it said on Thursday, in an apparent attempt to reassure foreign oil buyers it will stay out of the country's conflict.

Jackup Rig Delivered to Abu Dhabi’s NDC

Lamprell delivers its 11th Super 116E jackup drilling unit Lamprell has completed the construction of jackup drilling rig, the Shuwehat, and has delivered the

Captain, Officer of Containership Detained after Deadly Collision

The captain and first officer of a Kuwaiti container ship have been detained for four days after their ship collided with a fishing vessel in the Red Sea, killing 13 Egyptians,

Offshore Energy

DNV GL Targets Safer Approach to Subsea Lifting

The completion of a joint industry project (JIP) to improve existing standards and regulations around subsea lifting operations has resulted in a new recommended practice (RP).

Polarcus Awarded 3D Project Off West Africa

Polarcus Limited has signed a letter of intent with Perenco Oil & Gas Gabon S.A. for a 3D marine seismic acquisition project offshore West Africa.   The project,

Boskalis, VolkerWessels Win Offshore Wind Farm Work

Royal Boskalis Westminster N.V., in partnership with Volker Stevin International (VolkerWessels), has been awarded a contract by Iberdrola Renewables Offshore Deutschland

 
 
Maritime Security Maritime Standards Naval Architecture Offshore Oil Pod Propulsion Port Authority Ship Electronics Ship Repair Shipbuilding / Vessel Construction Sonar
rss | archive | history | articles | privacy | terms and conditions | 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: 0.1555 sec (6 req/sec)