SeaDrill Confirms Option To Build Second Unit Of Ultra Deepwater Semi-Submersible Rig With Jurong Shipyard At US$404 Million & Signs Option For A Third Unit
Jurong Shipyard, a wholly owned subsidiary of SembCorp Marine is pleased to announce that SeaDrill Limited (SeaDrill) has exercised the option to build the second unit of the 6th generation ultra deep water semi-submersible drilling rig at a contract value of US$404 million. The contract price is based on a turnkey contract with all owner-furnished equipment (OFE) including the 7,500 feet of riser and BOP.
In connection with the declaration of this option, SeaDrill has awarded Jurong Shipyard an additional option to build a third unit of the semi-submersible based on the same design and at comparable terms. This option takes effect in August 2006.
The second unit of the Friede & Goldman ExD-designed semi-submersible rig, originally on a three-month option and effective October 2005 (as per press release dated June 20, 2005), takes immediate effect with delivery scheduled in November 2008.
Mr Don Lee, Senior General Manager of Offshore Division said “We are pleased that SeaDrill has taken the decision to exercise the option and at the same time executed a second option to build a similar ultra deepwater semi-submersible rig with Jurong Shipyard. This in itself is demonstrative of the confidence that rig owners have on the future demand for deepwater rigs driven mainly by high oil prices and increased development drilling activities.”
Mr John Fredriksen, Chairman of SeaDrill Limited said “We are pleased that we through immediate action and through a good relationship with the shipyard have secured some very attractive semi-submersible newbuilding slots for our Company. A combination of the contract price, delivery time and payment terms make this into a very competitive project.”
He further added “With a total fleet of 12 units plus two further options and strategic ownership positions in Ocean Rig and Apexindo, we are on track to make SeaDrill into one of the leading offshore contractors within the next five years. The existing units and the newbuilding program give SeaDrill a unique position among the drilling contractors, as one of the only contractors who are positioned for significant organic growth in the coming years.”
Jurong Shipyard is a leading shipyard offering integrated solutions in ship repair, shipbuilding, offshore conversion, rig building and offshore engineering and with proven tract record in the building and servicing of jack-up and semi-submersible rigs. It has recently delivered two units of the world’s most advanced 5th generation dynamic positioning semi-submersible rigs to GlobalSanteFe International.
SeaDrill Ltd is a Bermuda-based company established in 2005 with an offshore drilling fleet consisting of three jack-up rigs, two FPSOs, four new build jack-up rigs and one new build semi-submersible. The Company has applied for a listing at the Oslo Stock Exchange with the target date for the listing of its shares between end September to early October 2005.
Barring unforeseen circumstances, SembCorp Marine expects a positive contribution to its earnings from the contract. However, this contract is not expected to have any material impact on the net tangible assets and earnings per share of SembCorp Marine for the year ending December 31, 2005.
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