Seatrade Maritime is part of the Informa Markets Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them. Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.

SBI Offshore, Middle East-Chinese consortium in talks to build up to five rigs

SBI Offshore, Middle East-Chinese consortium in talks to build up to five rigs
Singapore’s SBI Offshore has entered into talks with a Middle East-Chinese consortium for the construction of up to five jack-up drilling rigs.

The consortium boasts members involved in oil and gas activities, and it has indicated that the rigs will be deployed in the Middle East and various parts of Asia for operation in water depths of up to 110 metres.

SBI Offshore said negotiations with the consortium commenced after it secured from the latter a $24m contract to design a rig. The price of each rig is yet to be disclosed.

If the negotiations are successful, SBI Offshore expects to build the first rig in a regional shipyard, possibly in China or Singapore. Each rig will take at least two years to build and all the rigs are expected to be completed in about six years.

“SBI Offshore has entered a new phase of growth. We are hopeful of a successful outcome in our negotiations for the rigs and intend to secure more of such higher value projects in the future,” said Chan Lai Thong, executive chairman of SBI Offshore.

SBI Offshore had in July formed a 70%-held joint venture Axon Rig Concept and Design Asia with US oilfield equipment manufacturer Axon Energy Products Inc to provide integrated solutions for drilling equipment and systems.

Leveraging on the new joint venture, SBI Offshore is discussing with various yards in the region to offer its drilling equipment systems and services, as well as with energy resource players in the Middle East and the former Soviet Union for possible collaborations.