New jackups on the books
Diamond Offshore Drilling Inc. has entered into a letter of intent with Keppel FELS Ltd. in Singapore for construction of two high-performance premium jackup rigs. The units, one to be constructed in Singapore, and the other in Brownsville, Texas, will be 350-ft KFELS MOD V B-class (super) design, capable of drilling to 35,000 ft, with a hook load capacity of 2 million lb and a cantilever reach of 70 ft. KFELS plans to deliver both rigs in 1Q 2008. The letter of intent also provides an option for construction of a third jackup rig at a later date.
According to Larry Dickerson, Diamond’s president and COO, “The primary focus of the company has been enhancing our deepwater rigs, while at the same time we have significantly modernized our jackup fleet. Based on the strength of the market, we believe the construction of these premium jackup units will augment our ability to offer a full range of services to our customers.”
Meanwhile, Japan Drilling Co. Ltd. has placed an order with PPL Shipyard, Singapore, to build a new jackup of the Baker Pacific Class 375 design. The rig will be capable of drilling to 30,000 ft in water depths to 375 ft. Delivery is scheduled for February 2008.
American yards are also getting newbuild jackup contracts. Rowan Companies Inc. subsidiary LeTourneau Inc. won an award from Mexico’s Perforadora Central SA de CV for a Super 116E class rig.
The jackup will be an enhanced version of LeTourneau’s Super 116-C class jackup, with greater environmental and payload capacity. It will have 511 ft of leg, enabling operations in water depths up to 350 ft. Construction is underway at the company’s Vicksburg, Mississippi, shipyard with delivery expected in 2Q 2007.
KNOC gets FPSO
Korea National Oil Corp. has contracted a consortium comprising Modec Inc., Petroleum Technical Services Co., and Mitsui & Co. Ltd. to supply an FSO for KNOC’s Rong Doi and Rong Doi Tay fields offshore Vietnam. The contract also includes the time charter of the FSO to KNOC for seven years, with a maximum of 30 years of operation.
The FSO will be installed in 85 m of water and will have receiving capacity of 18,000 b/d of condensate. Storage capacity is 300,000 bbl.
The consortium is responsible for FSO engineering, procurement, construction, installation, commissioning, and operations, including the external turret mooring system. It will own and operate the FSO for seven years with additional 23 one-year options.
According to Modec, when this FSO project is completed, the company will be operating three FPSO/FSO vessels off Vietnam.
The Rong Doi (Twin Dragon) and Rong Doi Tay (Twin Dragon West) fields are 320 km southeast of Vung Tau on block 11-2 of the Nam Con Son basin.
Semi and semi tender for Smedvig
Smedvig entered into agreements with Eastern Drilling ASA to participate with a 10% ownership share in the company as well as construction supervision, marketing, and operations management of a new sixth generation semisubmersible.
South Korea’s Samsung Heavy Industries will build the rig, which is being touted as the most advanced drilling unit ever built.
Designed with a dual derrick, the DP semi will have 6,000 tons variable deck load capacity and water depth capability to 3,000 m. The unit will be constructed for winter operations in northern areas. A special environmental focus provides for a closed drainage system, dedicated slop tank for waste oil handling, and tanks for treated cuttings.
The semi will be ready for delivery from the yard in 4Q 2007, and will begin operations in 1Q 2008.
The contract between Eastern Drilling and Samsung includes an option for an identical rig on similar terms and conditions, which has to be declared within 12 months from signing of the contract. The contract between Eastern Drilling and Smedvig also includes the optional rig.
Smedvig has also exercised an option with Keppel FELS in Singapore for a new semisubmersible self-erecting tender rig. Capital expenditure for the new semi-tender is estimated at $105 million, of which Smedvig’s share is $33 million.
Keppel will build and own the semisubmersible hull, and Smedvig will own the derrick equipment set. Smedvig will also be responsible for marketing, managing, and operating the unit for 10 years. The agreement includes an option for Smedvig to purchase the semisubmersible hull in the 10-year period at a pre-agreed price.
The new semi-tender will be based on a design and specification similar to Smedvig’sWest Setia, but will feature several improvements on the original design. The new unit targets deepwater drilling operations in combination with floating wellhead platforms such as TLPs and spars in benign waters. The semi-tender is scheduled for delivery in 4Q 2006.
Two supply vessels for Hornbeck
Hornbeck Offshore plans to retrofit two coastwise sulfur tankers into US-flagged, new generation 370-ft multi-purpose supply vessels (MPSVs). The new vessels will join the company‘s fleet by the end of next year.
Hornbeck purchased theEnergy Service 9001, formerly known as the M/VW. K. McWilliams Jr., from Freeport-McMoRan Sulphur in November 2001. The company recently signed a definitive agreement to purchase an identical sister vessel, the M/VBenno C. Schmidt, from an undisclosed private owner.
According to Todd Hornbeck, the company’s chairman, president, and CEO, “The HOS 370 MPSVs will be the largest offshore supply vessels in the world, each with cargo carrying capacities of over 10,000 tons of deadweight and a minimum of 30,000 bbl of liquid mud. The hulls of these sister vessels, which were purpose-built for the specific gravity of molten sulfur as a cargo, make them uniquely suited to be converted into large liquid mud carriers. This is especially important given the ever-increasing volumes of liquid mud necessary to spud a deep well today, with some projects requiring as many as 100,000 bbl of drilling fluid per spud.”
One benefit of the conversion process is cost, according to Hornbeck. “We expect to convert these vessels into MPSVs for roughly the same cost that we would have to pay to construct a UT-745 or 280 class OSV, which are the largest OSVs that are currently in service,” Hornbeck says.
The company expects domestic demand for new generation OSVs to remain strong for the foreseeable future. The new vessels will service not only deepwater Gulf of Mexico drilling activities, but can also support construction and maintenance of all of the associated production infrastructure over the life of deepwater fields.•
