Yangzijiang Shipbuilding books first jack-up rig order

DECEMBER 3, 2012 — China’s Yangzijiang Shipbuilding is making good on its plans to get into the offshore market. Today it reports that its booked its first order for a jack-up rig and has entered into a Letter of Intent with SSP Asia for an FPSO.

The $170 million jack-up order has been placed by Explorer I Limited, which is wholly-owned by Mena Offshore Investments Limited and managed by Offshore Logistics (Asia Pacific) Pte. Ltd. It covers the construction and deliver one Letourneau Super 116E Class jack-up for second quarter 2015 and includes an option for one additional identical unit.

The rig will be built to ABS Classification and will be capable of drilling down to 30,000 feet depth and operating in a water depth of 350 feet. It will be equipped with state-of-the-art drilling equipment and systems with accommodations for 120 persons.

“This is definitely exhilarating news for the group as it sets the group firmly on its direction into the Oil and Gas space,” said Mr. Ren Yuanlin Executive Chairman, Yangzijiang. “The rig will be constructed in our existing shipyard, JNYS in China, which allows the group to leverage off its existing worldclass vessel building capabilities. We identified offshore as a growing market and have worked hard on adding that exposure to our portfolio in years. Our perseverance, dedication and commitment have finally paid off with the successful entering of the first rig building agreement.”

MENA CEO, Mr. Dino Pereira said, “We were impressed by the professionalism of the management of Yangzijiang Group and its state-of-the-art yard and facilities. We believe that Yangzijiang is one of the finest shipbuilders in the world, and should be able to migrate and leverage its experience and expertise to the jack-up rig construction business, having demonstrated its superior execution capabilities over the past 50 years. They have also assembled a team of qualified and experienced management personnel with deep product experience at the helm of its offshore division.”