Viking Offshore & Marine Limited announced today it would participate in the ownership of a second cantilever drilling jack-up rig, further strengthening its partnership with Singapore rig veteran, Chan Kwan Bian as it accelerates its entry into mainstream offshore rig chartering.
SGX Catalist-listed Viking said its wholly-owned Viking Asset Management Pte. Ltd.(“VAM”) will invest US$5.4 million to take a 30%-stake in Quick Booms Investments Limited (“QBI”), a special purpose vehicle controlled by Chan Kwan Bian which has a contract with China Merchants Industry Holdings to build the CJ46-X100-D GustoMSC rig designed for use in water depth up to 375 feet and can accommodate 120 men during operation.
The investment in QBI follows Viking’s announcement on 4 November 2013 of its first investment in Smart Earl Investments (“SEI”) which has a contract with a yard to build a rig – of similar price and specifications – in partnership with Chan Kwan Bian. Both the first and second rig are expected to be completed within the fourth quarter of 2015.
A renowned industry veteran with extensive experience in offshore and marine, Chan Kwan Bian co-founded Labroy Marine Ltd, a then-SGX listed offshore and marine specialist which was sold to Dubai Drydocks World LLC for S$2.4 billion in 2008.
Viking’s offshore system solutions business also secured the rights to supply all its three main types of offshore-related products and services for the first rig, and is confident of securing similar rights for the second rig.
Daniel Lin, Executive Director of Viking and Chief Executive Officer of VAM, said: “Viking is moving rapidly to develop its new pillar of growth – mainstream offshore rig chartering. This second rig, being finalised four months after the first one, underscores the faith that Viking has in extending its partnership with an experienced offshore rig operator such as Mr Chan Kwan Bian.”
“In securing rights for the supply of our core offshore products and services for the first rig, and the likelihood of securing the same for the second rig, we are accelerating the synergy of our core business divisions. Additionally, this will pave the way and open up potential for our products and services to be the standard for all CJ46 rig specifications,” he added.