Rowan resumes jackup construction

Rowan Companies is resuming construction of its fourth EXL class jackup rig at the Keppel AmFELS shipyard in Brownsville, Texas.

Offshore staff

HOUSTON -- Rowan Companies is resuming construction of its fourth EXL class jackup rig at the Keppel AmFELS shipyard in Brownsville, Texas. Delivery is expected in 1Q 2012.

In late 2007, Rowan signed construction contracts with Keppel for four EXL (enhanced LeTourneau Super 116E) class jackup rigs. The EXL will be equipped with a hook-load capacity of 2 million pounds, 70 ft (21 m) of cantilever reach, and the mud pumping horsepower to drill up to 35,000 ft (10,668 m). The company's first three EXL rigs remain on schedule and on budget, with deliveries scheduled for 1Q, 2Q, and 4Q 2010, respectively.

Construction also continues on schedule and on budget for Rowan's second and third 240C jackup rigs, Ralph Coffman and Joe Douglas, with delivery scheduled for 1Q 2010 and 3Q 2011, respectively.

“In early 2009, we suspended construction of this rig due to liquidity concerns and a weakening jackup drilling market, pending a decision in the third quarter about whether to complete or cancel this rig,” says Matt Ralls, Rowan's president and CEO. “We have now decided to resume construction based on substantial positive changes in our liquidly outlook through 2010 and our expectation of generating an attractive return on the $120 million of net capital remaining to complete construction on this rig.”

10/05/2009

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