Seadrill orders another semisubmersible tender rig

Seadrill has entered into an agreement with Keppel FELS Limited in Singapore to build a repeat semisubmersible drilling tender (SSDT) based on the KFELS SSDTTM 3600E design. The contract is worth $142 million to the shipyard and Seadrill says the total project price for the rig is estimated at below $200 million (including the drilling equipment set, project management, spares, capitalized interest and operation preparation).

The new rig is scheduled for delivery in the second quarter 2013 and will be based on a similar design and specification as the semi-tender West Jaya, which was delivered from the Keppel FELS yard in March this year and is contracted for a minimum of two years. Similar to previous semi-tenders, the new unit is suited for harsher environment and deepwater drilling operations in combination with floating wellhead platforms such as Tension Leg Platforms and Spars.

The new unit is based on the KFELS SSDT 3600E design and adds to the seven semi-tenders that Keppel has earlier built for Seadrill since the launch of the design in 1994. The unit will feature a crane capacity of 250 tones, four mud pumps and accommodation for 160 people.

Alf C Thorkildsen, Chief Executive Officer of Seadrill Management AS says, “We are pleased to announce the addition of a new semi-tender to our existing fleet of 19 tender rigs. The tender rig business has delivered excellent operational results as well as outstanding economics over the last decade. Based on the continued strength of the offshore drilling market we continue to see strong growth and earnings potential for our business. The new semi-tender has a favorable construction price and an equipment specification list that will meet our customers’ future needs. We have had very good experience with the Keppel FELS yard and this design and we are confident that the new unit will be delivered on time and within budget once again.”

June 9, 2011