Keppel Corp said in a stock market announcement that its Keppel FELS unit had sealed its first newbuilding rig contract in over two years to construct a mid-water semisubmersible (semi) drilling rig for harsh environment use.
The contract also gives Awilco options to order up to three more similar rigs to be exercised within 12, 24 and 36 months respectively, with prices to be subject to cost adjustments at the time if and when the options are exercised.
The first rig is scheduled for completion in the first quarter of 2021, and will be built to Moss Maritime's CS60 ECO MW design. Compared to the ultra-deepwater CS60, this is a compact version specially designed, configured and outfitted for mid-water operations of up to depths of 1,500m.
"We are pleased to partner Awilco once again, having previously delivered three jackup rigs to the same management team. It is a testament of their trust and confidence in Keppel's capabilities and rig-building solutions. We have worked closely with Awilco to customise the CS60 for mid-water and harsh environments. In addition, the use of real time data in the rig's operations and maintenance will enhance its efficiency and robustness, providing a competitive advantage for harsh environment operations," said Keppel O&M ceo Chris Ong.
Boasting a low environmental footprint, the drilling rig is designed for operations in harsh environments, including the Norwegian Continental Shelf, UK Continental shelf and Barents Sea. Equipped with a hydraulic hoisting system capable of two million pounds of lifting capacity, it also features an optimised 12 point thruster assisted mooring system for vessel station keeping, complete with hybrid power supply and energy saving features. The rig is also equipped with state-of-the-art digitalisation, including condition monitoring systems, which will enhance the drilling efficiency and reliability of the rig, while reducing likelihood of downtime.
Awilco Drilling ceo Jon Oliver Bryce said: "We see growing activity in the harsh environment mid-water rig segment with utilisation increasing, especially in the North Sea. This will be the third semi to join our fleet. With the options to order another three rigs, we are well positioned for the market recovery. This newbuild rig will be purpose-designed with the latest technology, making it cost-effective for our customers.”
He added: "The market has a clear preference for high specification rigs from a reliable shipyard like Keppel FELS. We are pleased to partner Keppel again as they are among the world's leading rig builders, and have been able to offer us a value-adding, unique solution."
In its 2017 full year results Keppel said it is focusing on execution, as delayed projects start to be delivered. The net orderbook for newbuild jackup rigs fell from $1bn in 2016 to $700m while newbuildings orders for semis have stagnated at $200m.This had drifted downwards from $1.5bn and $500m worth of new jack up and semi orders respectively at the end of 2015.
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