Offshore staff
(US, GoM) - EZRA Holdings Ltd. has established a 50/50 joint venture with KS Energy Services Ltd. to acquire and own a new self-propelled jackup.
The rig, which will be built by a North American shipyard, is expected to be delivered by 3Q 2007, and chartered to a Central American-based company for operation in the Gulf of Mexico.
The charter is valued at around $95 million over five years comprising an initial term of three years with an option to extend for two more. At the end of the charter, the JV expects to redeploy the rig on another contract.
Unlike a conventional jackup rig, the self-propelled rig is not fixed in one position and can move on its own from one location to the next. This self-propulsion ability saves the end-user valuable time and significant rig relocation costs, according to Ezra.
The JV will have an initial paid-up capital of $1 million. The project cost will be funded by a combination of equity and bank borrowings. Ezra says it will play a key role in the rig's operation while KS Energy will undertake its installation, commissioning, construction, supervision, and subsequent management.
04/21/06
