Songa reports construction delay for North Sea Cat D rigs

Songa Offshore says the first of two drilling rigs that it is building to Statoil’s Cat D design are more than 70% complete.

Offshore staff

LIMASSOL, Cyprus – Songa Offshore says the first of two drilling rigs that it is building to Statoil’s Cat D design are more than 70% complete.

However, delivery of theSonga Equinox and Songa Endurance are delayed until 4Q 2014, due to capacity problems at the DSME yard in South Korea and its sub-suppliers.

The other two newbuilds,Songa Encourageand Songa Enabler, are expected to be delivered in 2Q 2015.

Songa adds that its project team is working with Statoil on preparations for transportation of the rigs from South Korea to Norway, to allowSonga Equinox to start operating early in 2015.

It estimates the overall “ready to drill” average project cost per rig at $660 million plus capitalized interest, including roughly $100 million in project management and mobilization costs.

11/11/2013

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