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TSC resells jack-up rig for work in Indonesia

TSC Group Holdings has transferred the sale of a Chinese-built jack-up rig to Indonesia-based Harmoni Drilling Services (HDS), rescinding an earlier sale of the rig to Hong Kong Petrolor Oilfield Services Co (Petrolor).

Lee Hong Liang, Asia Correspondent

February 5, 2016

2 Min Read
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Hong Kong-listed TSC said the new buyer HDS has paid an initial deposit for the Zentech R-550D rig, which is currently under construction at CSSC Huangpu Wenchong Shipbuilding.

The latest sale to HDS replaces the sale to Petrolor previously announced back in December 2013. TSC said the deal was agreed on a mutual basis with Petrolor.

The jack-up rig sale and purchase agreement was made between HDS and Alliance Offshore Drilling (AOD), wholly-owned by TSC. HDS, on the other hand, is 90% owned by Indonesia’s drilling and oil service contractor PT Harmoni Drilling Services, and the remaining 10% is owned by AOD.

Financial details of the sale and purchase transaction were not disclosed.

“The rig will on completion by the second quarter of this year be well-primed for securing oil and gas drilling contracts with production sharing contract operators in Indonesia,” TSC announced.

The R-550D jack-up rig is a high performance, three-legged, extended reach cantilever type jack-up drilling rig, suitable for operations in many major offshore fields in Asia, Africa, the Gulf of Mexico and the Middle East in water depths of up to 400 feet.

TSC added that by working with HDS, AOD is able to fulfill the mandatory local content factor required by the Indonesian Oil and Gas Authority, and pave the way for the rig to operate in Indonesia at a competitive day rate compared to non-Indonesian rigs.

“The company recognises the need to be cost competitive in order to win bids for drilling contracts through PT HDS in the current low oil price scenario. PT HDS has a long term goal of becoming a major oilfield services company and sees the opportunity to work with TSC as fully complementary to its long term strategies,” TSC said.

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About the Author

Lee Hong Liang

Asia Correspondent

Singapore-based Lee Hong Liang provides a significant boost to daily coverage of the Asian shipping markets, as well as bringing with him an in-depth specialist knowledge of the bunkering markets.

Throughout Hong Liang’s 14-year career as a maritime journalist, he has reported ‘live’ news from conferences, conducted one-on-one interviews with top officials, and had the ability to write hard news and featured stories.

 

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