SEPTEMBER 15, 2016 — ASRY, Bahrain, has welcomed its 100th rig repair job to the shipyard, which this year is seeing the highest number of rig repair contracts in the yards history.
The project is on the high specification jack-up rig Bob Palmer, a LeTourneau Super Gorilla XL class, one of the largest jack-up rigs in the world, owned and operated by Rowan Companies.
"ASRY's diversification into rig repair has continually proven to be one of the yard's most perceptive moves, with its revenue cycle complementing ship repair's cycle," commented ASRY's Chairman of the Board of Directors, Shaikh Daij Bin Salman Al Khalifa.
Acting Chief Executive Magdy Mustafa added "even during market downturns, having multiple and diverse revenue streams provides more opportunities, as is being visibly demonstrated by our recent rig repair successes."
"This milestone is especially encouraging considering the enormous pressure the rig market is still under," said ASRY Offshore Services General Manager, Rob Bryant.
While revenues remain under pressure, the number of rig projects coming to the yard makes ASRY the market leader for rig repair in 2016, with 20 already repaired by August. Earlier in the year there were 16 rigs simultaneously in the yard, a record since the division began in 2008.
The record number of projects is still not translating into record revenues. "Margins are very tight," Bryant confirmed, "so we are working closely with our clients to meet their repair needs in the most affordable way possible, without compromising the quality and safety standards that keep them coming back."
ASRY says its ability to find mutually beneficial solutions is a key factor in maintaining the long-term relationships that the yard is renowned for.
After an uncertain 2015, ASRY sees more predictability going forward.
"Following the uncertainty that dominated the rig market in 2015 due to major global oil price fluctuations," Bryant explained, "Mideast rig owners and operators have a clearer understanding in 2016 of the future course for the market. Repair scopes are still only including the essentials to meet Survey requirements, but a more predictable future is relaxing the anxiety that choked the market last year."
ASRY is also pushing ahead with onshore rig work, after recently completed its first land rig refurbishment project. A second land rig project is due in fourth quarter 2016