Rowan re-starts construction project

Rowan Companies Inc. is restarting construction of the third 240C class jackup rig Joe Douglas at its Vicksburg, Mississippi shipyard, with delivery expected in 3Q 2011.

Offshore staff

HOUSTON-- Rowan Companies Inc. is restarting construction of the third 240C class jackup rig Joe Douglas at its Vicksburg, Mississippi shipyard, with delivery expected in 3Q 2011. The company halted construction earlier this year due to the downturn in jackup drilling markets.

Construction continues on the company’s second 240C, the Ralph Coffman, which is scheduled for deliver in early 2010. The company's first three EXL rigs remain on schedule and budget, with deliveries scheduled for the second, third, and fourth quarters of next year. The fourth EXL rig remains on hold pending the company's decision to resume construction later this year.

“Based on improvements in the credit markets and our confidence in our liquidity outlook through 2010, we have elected to resume construction,” says Matt Ralls, Rowan's president and CEO. “We believe that this very capable, high specification rig will generate an attractive return on capital based on its expected go forward cost of $150 million and will be met with widespread customer acceptance when it is delivered in 2011."

06/26/2009

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