VESSELS, RIGS, UPGRADES

March 1, 2006
New construction frenzy

David Paganie • Houston

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New construction frenzy

The newbuild construction rage continues across all facets of offshore field development from drilling rigs to construction barges.

Thule Drilling ASA exercised an $80 million option with UAE rig construction yard QGM Group LLC for a newbuild Friede & Goldman (F&G) Super M2-designed jackup. Thule holds an option to execute a second newbuild contract with the shipyard.

The F&G-designed rig,Thule Energy, will be fitted with a 50-ft cantilever reach and a 3,000-ton variable load, capable of drilling to a total vertical depth of 30,000 ft in up to 300 ft of water.

The $126 million newbuild is scheduled for delivery in November 2007. Pending completed contract agreements, the company’s second $120 million F&G-designed jackup,Thule Force, will be delivered in 2Q 2008.

Both rigs are being marketed for commitments in the Middle East. Thule adds that it has an additional nine options with QGM for newbuild jackups.

Meanwhile, the drilling contractor’s jackup,Thule Power, is undergoing an extensive renovation at QGM against a five-year bareboat charter at $80,000/day with a Middle East-based unnamed oil company. The rig is scheduled for delivery in August 2006.

The company also announced that it sold its semisubmersibleThule Challengeto Dubai-based Atlantic Marine Offshore Services for an undisclosed amount. Thule intends to sell its remaining semisubmerisble drilling asset,Thule Phoenix, as well, in order to become a pure jackup rig owner.

Singapore-based Keppel Corp. has also secur- ed new construction contracts, with announcements for delivery of three newbuild jackups and one semisubmersible drilling rig.

Deep Drilling Invest Pte Ltd., a subsidiary of Sinvest ASA, exercised a $140 million option with Keppel FELS for delivery of its fifth KFELS Super B class jackup rig. The rig is designed to drill high-pressure, high-temperature wells down to 35,000 ft in up to 35 ft of water. The unit is scheduled for delivery from the Singapore shipyard in 1Q 2009.

Deep Drilling picked up an option with PPL Shipyard Pte Ltd. for a newbuild jackup. The $140.1 million Baker Marine 375 Pacific Class jackup will be equipped with capacity to drill down to 30,000 ft in up to 375 ft of water. Delivery of the rig is expected in 3Q 2008.

Similar to Sinvest, Scorpion Intrepid Ltd. has selected Keppel AmFELS to build its fifth rig in a series of newbuild jackup orders with the shipyard. The $143 million LeTourneau Super 116-designed jackup will come equipped with 477-ft legs, capable of drilling wells down to 30,000 ft deep in up to 350 ft of water. Scorpion’s latest order,Offshore Intrepid, is scheduled for delivery from the Texas shipyard in 4Q 2008

Keppel signed its second order this year for delivery of a LeTourneau Super 116-designed jackup with Atwood Oceanics Pacific Ltd. The new rig will be constructed at Keppel AmFELS, with delivery expected by September 2008. The estimated total cost of construction is between $150 to $160 million.

Meanwhile, Keppel FELS picked up its second contract from ENSCO International Inc., valued at approximately $338 million, for delivery of an ultra deepwater semisubmersible drilling rig. The new DP2 semi,ENSCO 8501, is scheduled to be delivered in 1Q 2009.

The rig is being built with capacity to drill in up to 8,500 ft of water and is upgradeable to 10,000 ft, if required. It will be fitted with eight 2,600-kW thrusters and a single conventional derrick system, with accommodation for up to 150 people. The rig is expected to mobilize to the GoM for contracted commitments around 2Q 2009.

Keppel FELS in Singapore is building 25 offshore structures, including Sinvest’s first KFELS Super B class jackup rig (pictured in the middle), scheduled for delivery in April. Pictured on the left is KFELS B class ENSCO 107, which was delivered in January, and on the far right is KFELS Super B class Deep Drill 2 ENSCO 56, delivered in February.
Click here to enlarge image

Bermuda-based SeaDrill Ltd. placed an order for a newbuild semisubmersible drilling rig withKorea’sDaewoo Shipbuilding. The shipyard won the $495-million contract to deliver the GVA-7500-N-designed, 10,000 ft-rated semi with associated 7,500 ft of riser, 15-kW BOP, and a complete mooring system.

Norway-based Smedvig rounds out the extensive list of newbuild contracts placed at time of print, with execution of an $89 million agreement with Malaysia Marine & Heavy Engineering Sdn Bnd for delivery of a new self-erecting tender rig,T-10. The barge is scheduled to be delivered in 2Q 2007 for operations in Southeast Asia.

Concurrently, two drilling contractors announced plans to reactivate cold-stacked jackups. TODCO plans to initiate reactivation of its 250-ft mat slot jackup rig,THE 256, for Seneca Resources Corp. against a one-year term contract valued at $38 million. The rig is anticipated to begin drilling operations for the independent in June, following an $18.6 million reactivation and upgrade stint.

Hercules Offshore announced plans to reactivate a jackup rig as well. The drilling contactor is refurbishing the 150-ft LeTourneau-builtRig 26(formerlyTHE 154) under a $20 million contract with a US shipyard. The company recently acquired the rig from Aries Offshore Partners Ltd. for $20.1 million. The reactivation period is expected to take up to one year. Hercules is currently marketing the jackup for work outside US waters.

On the construction side of the newbuild frenzy, California-based Crowley Maritime Corp. awarded a contract to Gunderson Marine of Portland, Ore. for delivery of two 400-ft by 105-ft heavy-lift deck barges. According to Crowley, the company is proceeding with construction of these two barges in response to increased demand for modern US-flagged barges capable of transporting large topsides, jackets, and associated equipment to deepwater locations in the GoM.

The two barges, scheduled to be classed by ABS and certified by the US Coast Guard, will also be capable of operating in other regions including Alaska.

Subsea 7 secured construction contracts valued from $170 to $200 million for a new 154 m by 28 m pipelay and construction vessel. The unit will come equipped with a vertical lay system with top tension capability in excess of 400 tons, combined with a storage capacity for flexible pipe based on two 1,250-ton carousels situated below deck, and a 3,000-ton carousel or multiple reels on deck. The vessel will also be fitted with a 400-ton deepwater crane, built-in deepwater ROV spread, and a comprehensive survey system.

The contractor has the option to request a vertical lay tower designed to enable operation in J-lay mode for rigid pipe and for performing installation of large structures associated with deepwater riser systems.

The vessel is expected to be delivered in 2Q 2008 from The Netherlands-based Merwede shipyard and equipment supplier Huisman.