Offshore staff
(Singapore)- Keppel FELS has secured a contract to build another ultra deepwater semisubmersible for A.P. Moller - Maersk for $260 million. This will be the fourth semi that Keppel FELS is constructing for Maersk Contractors.
This order brings the level of new contracts secured to date in 2006 to above $2.5 billion for the whole of Keppel Offshore & Marine (Keppel O&M) group.
This contract follows the exercise of an option given to Maersk Contractors when it ordered two semis in May 2005. Keppel FELS successfully delivered the first semi,Maersk Explorer to Maersk Contractors in 2003.
In addition to the deepwater semis, Keppel FELS is currently building four jackups for Maersk Contractors.
Mr. Claus V. Hemmingsen, CEO of Maersk Contractors says, "The increasing demand for energy will continue to spur growth in development activities in deepwater. As such, there is a need for more highly efficient rigs to meet this growing need."
Hemmingsen continues: "We are happy with the progress of our two deepwater semis currently under construction at Keppel FELS and have decided to award the yard the contract to build our next newbuild. Keppel FELS has proven that it is a competent partner for the provision of cost effective and capable rigs."
Mr. Tong Chong Heong, managing director and COO of Keppel O&M, said, "Deepwater oil and gas production activities have been increasing and expenditures are predicted to reach $20 billion per year by 2010.
"We are pleased about Maersk Contractors' confidence in Keppel's abilities to provide solutions that will meet stringent requirements to quality and innovation."
This new semi will be built to the proprietary design of the first two rigs, known as the DSS-21, and co-developed by Keppel's Deepwater Technology Group (DTG). Under the agreement, Maersk will supply drilling and other equipment for use on the rig.
The semi will be equipped with a dynamic positioning system, which can be attached to a prelaid mooring system. Keppel reports that it is suited for operations in moderate environmental conditions such as West Africa, Brazil, Gulf of Mexico and Southeast Asia in water depths of 3,000 m (10,000 ft). Each rig can accommodate up to 180 persons.
Delivery of this new deepwater semi is expected during 1Q of 2010. Meanwhile, the two semis under construction are scheduled for delivery in 1Q 2008 and 2009, respectively.
5/19/2006
