Keppel clinches $425m drilling rig order from Awilco

Singapore’s Keppel Corporation has clinched a $425m order from Norway’s Awilco Drilling to construct a mid-water semi-submersible harsh environment drilling rig.

The order was one of two options exercised by Awilco Drilling from an earlier contract to build a similar rig.

Awilco Drilling has independent options to order up to another two similar rigs to be exercised in 2020 and 2021 respectively.

The semi-submersible drilling rig construction order is secured by Keppel FELS, wholly-owned by Keppel Offshore & Marine, a unit of Keppel Corp.

The rig is scheduled for completion in the first quarter of 2022, and it will be capable of operating in water depths up to 1,500 metres in harsh environments of North West Europe, including the Norwegian Continental Shelf, the UK Continental shelf and the Barents Sea.

“Work on the first rig is progressing well and we will be able to benefit from economies of scale and cost efficiencies from undertaking a repeat project. For this second rig, we will be able to leverage the engineering and construction process of the first rig to further improve productivity,” said Tan Leong Peng, executive director (offshore) of Keppel O&M.

Read more: Keppel seals Awilco semisub contract for $425m

Sigurd E. Thorvildsen, chairman of the board of Awilco Drilling, said: “We have exercised the first of our three options because we see growing demand for such mid-water, harsh environments rigs in North West Europe.”

Keppel O&M has delivered 25 semi-submersible rigs since 2000.

Posted 11 March 2019

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Lee Hong Liang

Asia Correspondent

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