David Paganie, Houston
Rig construction
Since we last reported on new rig construction, one tender, one jackup, and three semisubmersibles were ordered.
Seadrill secured the order for supply of a new self-erecting tender rig from Malaysia Marine & Heavy Engineering under a $100 million contract. The new rig,T-11, is scheduled for delivery in 4Q08.
Noble Corp. picked up the $190 million contract from Venture Production Plc for supply of a new F&G JU-2000E-designed jackup drilling rig, which will be built by China Shipbuilding & Offshore International Co. Ltd. and Dalian Shipbuilding Industry Co. Ltd.
The rig will operate under a two-year commitment at $210,000/day. Venture plans to use the rig in the North Sea.
Atlantia Offshore Ltd. was issued LOIs from various Brazilian contractors to supply the semisubmersibles. The contactor will deliver at least three GustoMSC TDS2000-designed DP semis capable of drilling to 7,500 m total depth in up to 2,400 m of water.
The rigs will be supplied from 30 to 42 months from official contract award on a turnkey basis for $370 million each.
In other rig construction news, the Arab Shipbuilding and Repair Yard Co. (ASRY) won a contract from the National Drilling Co. (NDC) to reactivate the idle jackup,Al Mariyah, for deployment in the Arabian Gulf.
ASRY’s $13 million scope involves hull and structural repairs and refurbishment, including overhaul of the jackup’s 210-ft legs and accommodation quarters. Reports indicate that 1,000 tons of steel will be used in the process.
The reactivation program is under way in Bahrain and is expected to be complete by the end of this year.
UK-based Intelligent Engineering also is undertaking rig repair and refurbishments. The company is applying its patented Sandwich Plate System (SPS) overlay technology in the restoration of the pipe rack deck onboard Pride International’s semisubmersible,Pride South Atlantic. The reinstatement program is being carried out at the Maua Jurong facility in Niteroi, Brazil.
Rig sales
Seadrill and Ship Finance International Ltd. executed a transaction under which Seadrill will sell the jackupSeadrill 3 to Ship Finance for $210 million and then lease it back for a 15-year period.
Under the agreement, Seadrill has a right to repurchase the rig after three years or at the end of the charter. The exercise price after three years is $135.5 million and $60 million at the end of the 15-year charter.
Petrojack ASA has agreed to a rig transaction as well. The contractor will sell its jackupsPetrojack I and Petojack III to A.P. Moller-Maersk for $420 million.
At print, the two rigs were under construction at Jurong Shipyard in Singapore.
M&A
Singapore-based SembCorp Marine Ltd. has agreed to acquire Sembeth and SMOE for a combined total of S$183.73 million, to expand and grow its rig building and offshore engineering business as well as enhance its core business of shipbuilding, conversion, and repair.
Under the first agreement, SembCorp subsidiary Sembawang Shipyard Pte Ltd. will acquire the entire equity interest in Sembawang Bethlehem Pte Ltd. for S$128.73 million. The asset transaction includes 86 hectares of 22-year leasehold land, workshops, quays, and docks.
The second agreement involves an acquisition between SembCorp Utilities Pte Ltd. and SOME Pte Ltd. for S$55 million. Assets exchanged in the transaction include two fabrication facilities comprising 30 hectares of land and 275 m of waterfront.
FPSOs
Bergesen Worldwide Offshore Ltd. (BWO) signed an LOI with Peak Petroleum Industries Nigeria Ltd. and Equator Exploration Ltd. to provide an FPSO for deployment on the Bilabri field block OML 122, off Nigeria.
BWO has nominated its FPSOBW Endeavor for operations on the field. The block operators will lease the FPSO for fixed period of five years with an option to extend the deployment term an additional five years. The contract value is approximately $240 million.
TheBW Endeavor is equipped with capacity to handle 40,000 b/d of oil and 25.6 MMcf/d of gas. The turret moored unit is also capable of storing 1 MMbbl of oil.
First production at Bilabri is expected in 3Q07 at 30,000 b/d.
In other FPSO news, Aker Kvaerner and Norwegian ship owner Aktieselskabet Borgestad ASA established a new company named Aker Borgestad Operations AS, based in Norway.
The new company will operate FPSOs on behalf of Aker Floating Production, which currently owns several units.
Under the newly established entity, Aker Kvaerner Operations AS and Aktieselskabet Borgestad ASA will each own 45% of the shares in Aker Borgestad Operations, while Aker Floating Production ASA and Aker Yards ASA will own 5% each.
Aker Floating Production has already acquired three tankers which will be converted into FPSOs and operated by the new company, which plans to own a minimum of four FPSOs.
The Global Industries-operated 305-ftREM Commander, recently delivered from a shipyard in Norway, is equipped with a 110-ton crane, diesel electric propulsion system, accommodations for 68 people, and a 650-ft saturation diving system. The vessel also features a 9,000-sq ft cargo deck area, 20-ft x 17.5-ft moonpool, and a Sikorsky-92 class helideck. The vessel will perform abandonment and salvage work in the Gulf of Mexico. Meanwhile, construction is under way on its sister vessel, REM Fortress, which will be operated by Global as well. The vessel will come equipped to similar specifications as the Commander, but will feature a larger hydraulic crane with capacity for 150 tons and accommodations for 100 people. The vessel is scheduled to be delivered in 4Q06 and will be marketed for use in the GoM.
