Maersk orders third harsh environment jack-up at Keppel FELS

Maersk Inspirer on Volve fieldJUNE 1, 2012 — Maersk Drilling has ordered a new ultra harsh, high specification jack-up rig at Keppel FELS in Singapore backed by a four-year-contract with Statoil for development drilling on the Dagny field in the Norwegian North Sea.

The order comes only one year after Maersk Drilling invested around $1.3 billion in two similar jack-ups for the Norwegian market.

"Norway remains a focus area for Maersk Drilling and we are very pleased to further solidify our strong position in the Norwegian jack-up market," says Claus V. Hemmingsen, CEO of Maersk Drilling and member of the Executive Board of the A.P. Moller - Maersk Group. "Over the past 16 months we have made significant investments in three highly advanced jack-up rigs for Norwegian waters and will continue to evaluate opportunities for further growth in the area."

The new rig, scheduled to be delivered in the beginning of 2015, will be built at the Keppel FELS shipyard in Singapore and is identical to the two high spec jack-up rigs ordered in February 2011. The total project cost for the rig is close to $650 million. This includes turnkey contract with the shipbuilder, owner furnished equipment, project management, commissioning, start-up costs and capitalized interest. The contract includes the option for construction of one additional jack-up to be declared in November 2012.

The rig ands its two sister rigs ordered in 2011 are new generation jack-ups. The design is an enhanced version of the proven Gusto MSC CJ-70-150MD design and includes a number of features that will further improve the rigs' drilling performance. The rigs are especially suited for development drilling over well head platforms at water depths up to 150 meters, but are also prepared for subsea drilling. The high capacity features include offline pipe handling and simultaneous operations as well as an enlarged cantilever reach, all of which will significantly increase the drilling efficiency compared to conventional units. The enhanced design also includes multi-machine control on the drill floor, which will allow for a high degree of automation to ensure a safe operation and consistent performance. A total of 150 people can be accommodated on board in single cabins.

Mr. Tong Chong Heong, CEO of Keppel Offshore & Marine, said, "Our congratulations to Maersk for winning the confidence of Statoil. We are pleased to be given this opportunity to partner Maersk Drilling in their project for Statoil. Having developed a long-term partnership with Maersk Drilling, we have a keen understanding of their requirements, enabling us to support them in growing their rig fleet.

"We thank Maersk Drilling for entrusting us with their third harsh environment jackup. This repeat order is a testament to our ability to deliver high quality rigs on time, safely and within budget. I am confident that, like our previous rigs for Maersk Drilling, the three CJ70rigs will be a success when they are deployed."

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