Seadrill Orders Two Jack-ups For 2016
Bermuda-headquartered Seadrill Limited has entered into new contracts for the construction of two high specification jack-up drilling rigs at Dalian Shipbuilding Industry Offshore Co., Ltd. [DSIC Offshore] in China.
The newbuild rigs are scheduled for delivery during the second and third quarters of 2016, and the total project price per rig is approximately US$230 million [including project management, capitalized interest, drilling and handling tools, spares and operation preparations], with tail-heavy payment terms.
The two new units will be based on the F&G JU2000E design, with water depth capacity of 400ft and drilling depth of 30,000ft. Seadrill now has in total ten jack-ups under construction at DSIC Offshore of which two are scheduled for delivery in 2013, five in 2015 and three in 2016.
Seadrill’s construction program now totals 24 units, including 9 drillships, 2 harsh environment semi-submersibles, and 13 high specification jack-ups. In addition the Company has fixed priced options for two ultra-deepwater units.
Per Wullf, CEO of Seadrill Ltd. says in a comment, “Seadrill has focused its’ newbuild activity on the high end of all asset classes since the Company’s inception in 2005. High specification units have historically commanded the highest dayrates and utilization rates and we fully expect this trend to continue. The market for high specification jack-up units is poised for a significant uplift in dayrates and we continue to invest in order to put Seadrill’s shareholders in a prime position to benefit.
“Seadrill’s competitive advantage not only resides in its’ assets, but also in its’ demonstrated safety and operational and track records and the ability to win repeat business from industry leading customers. We are confident these factors, along with continued fleet growth, will contribute to our industry leading returns and ability to grow the dividend.”
