Singapore Exchange Mainboard-listed Marco Polo Marine Ltd has entered into an agreement with PPL Shipyard Pte Ltd, a subsidiary of Sembcorp Marine Limited, to construct a high-specification jack-up rig with a contract value of US$214.3 million.
The rig is slated for delivery inin the fourth quarter of 2015. Marco Polo Marine has options to order two more units for delivery in the third quarter of 2016 and the first quarter of 2017 respectively.
The high-specification jack-up rigs will be constructed based on PPL Shipyard’s proprietary Pacific Class 400 design which is capable of operating in waters of up to 400 feet and drilling high pressure and high temperature wells to depths of up to 30,000 feet. Incorporating advanced drilling equipment for improved drilling efficiency with 1.5 million pound of static hook load capacity, offline handling features and simultaneous operations support, Pacific Class 400 is capable of jacking at full preload. It will also be equipped with full catering facilities and amenities which can accommodate up to 150 people on board in one-man and two-man cabins.
Sean Lee Yun Feng, Group CEO, said: “The signing of the agreement with PPL Shipyard is an epochal moment as it marks the start of a significant leap forward in terms of our operations and service offerings.
Together with the grant of the two option units, we are delighted to work together with PPL Shipyard as it is one of the most highly regarded shipyards globally. We are confident of the on-time and quality delivery of high specification rigs from PPL Shipyard backed by its strong track record.
The Group’s entry into this business segment coupled with the expected delivery of the Rig in fourth quarter of 2015 is timely in view of the favourable demand-supply dynamics. Against a backdrop of stable oil prices, demand for jack-up rigs is growing as governments encourage offshore oil and gas exploration and production with enhanced urgencies in the region. Currently, almost half of the existing global fleet is more than 30 years old by our reckoning. This means that these older generation rigs, inhibited by age and obsolescence, would require significant renewals which would bolster demand for newer generation high-specification rigs in the foreseeable future. It is our intention that we establish this new aspect of rig ownership and chartering business as a core division. We look forward to timely delivery of the Rig and the commencement of operations so as to generate a stable and growing recurring income for the Group.”
Wong Teck Cheong, Managing Director of PPL Shipyard Pte Ltd, said, “We are honoured that Marco Polo Marine has chosen and entrusted PPL Shipyard with the construction of its maiden offshore drilling rig. The jack -up rig order signifies the owner’s confidence in the jack-up rig market and their trust in our proven rig design and ability to deliver quality rigs on schedule and within budget. We have secured a total of 44 orders for the Pacific Class design jack ups since 2004, with 35 units delivered and in operation. Our proprietary ownership of the Pacific Class design, offers us the flexibility to provide custom-design turnkey solutions to meet the unique requirements of our clients and the field operators. Since the advent of the Pacific Class design, we have built rigs for several clients venturing into the offshore drilling business and today they are well established offshore drilling rig owners and contractors. We are impressed with Marco Polo Marine’s strong management and foresight and we are confident that they will reap success in this new aspect of rig ownership and chartering business.”