Singapore’s drilling contractor KS Energy has through its subsidiary KS Drilling ordered a jack-up drilling rig from China’s Shanghai Zhenhua Heavy Industry Co., Ltd. (“ZPMC”).
The contract is for the construction and delivery of one new build jack-up drilling rig based on the Friede & Goldman JU-2000E design, with an option granted to KS Drilling for the construction and delivery of a second rig of the same design.
The F&G JU-2000E is a self-elevating drilling unit designed for all-year, Central North Sea, harsh-environment operation in approximately 400 feet of water.
The first jack-up rig is expected to be delivered in twenty-seven months, while KS Drilling may exercise the option for the second New Rig at any time within the next six months .
The total value of each rig is approximately US$199.2 million, exclusive of additional costs to be paid for project management, drilling and handling tools, spares and capitalized interest.
The transactions will be funded by a combination of internal resources and borrowings.
“The Company considers the commercial terms of the transactions to be attractive in the current market conditions. The acquisition of the New Rigs will allow the Company to expand its drilling services business, one of the Group’s core businesses,” KS Energy said in a filing to the Singapore stock exchange.