AOD Orders 2 Jack-up Rigs at CSSC Huangpu Wenchong
CSSC Huangpu Wenchong Shipbuilding Company has won an order to build a pair of jack-up drilling rigs for Alliance Offshore Drilling (AOD), subsidiary of Hong Kong-listed TSC Group.
The two Zentech-designed R-550D rigs are scheduled to be delivered by 2017 and June 2018, respectively. Financial details of the deal were not disclosed.
TSC Group established a joint venture with CSSC Huangpu Wenchong Shipyard in June to develop in the offshore EPC market.
"The transaction arising from the Contracts will be conducted in the ordinary and usual course of business of the Company. The rigs are intended either for drilling operations to be undertaken directly by AOD as a drilling contractor on completion of the rigs or for sale to prospective customers who have expressed interest in the purchase of the second and third rig," says a press statement of the company.
"In the event of sale, the customer will assume the rights and obligations of the construction contracts based on negotiated terms. In either of the above events, the Company expects the transaction to provide positive revenue growth to the Group," adds the release.