On the back of winning a new 5+2 year charter from Maersk Oil and Gas, Hercules Offshore has placed an order today with Sembcorp Marine’s subsidiary Jurong Shipyard for a new Friede & Goldman-designed JU 2000E jack-up drilling rig.
The newbuild order comes at a total price of USD $236 million with an expected delivery in Q2 2016.
The charter contract is worth approximately $420 million and will put the rig in the central North Sea to develop Maersk Oil’s gas condensate-rich Culzean Field.
To finance the newbuild, John Rynd, Hercules CEO and President notes, “Cash on hand will be used to fund the initial shipyard payments and we plan to secure project financing to fund the remaining payment as the rig nears delivery.”
The JU 2000E design is able to operate in waters up to 400 feet deep with drilling depths of 30,000 feet. The rig will feature a 2,000,000 lb rated derrick, 6,000 bbls mud capacity, accommodations for 150 and a 15,000 psi blowout preventer.
For Sembcorp, this latest contract brings total new orders for 2014 to S$1.93 billion. The Group’s net order book now stands at S$13.2 billion, with deliveries extending into 2019.