COPENHAGEN (Dow Jones) –Danish industrial conglomerate A.P. Moller-Maersk A/S (MAERSK-B.KO) said Wednesday its oil and gas drilling services arm Maersk Drilling has received a two-year contract for the use of a new ultra harsh environment jack-up rig for a drilling project in the Norwegian North Sea.
The order, which comes from Norwegian oil company Statoil ASA (STL.OS), has a value of around $284 million, Maersk said in a statement.
The jack-up rig is currently being used by U.S. oil major ConocoPhillips (COP), and the new contract will commence in direct continuation of the present contract, which ends in either the second quarter of 2014 or the second quarter of 2015.
“This contract improves our forward contract coverage even further providing us with high earnings visibility. This forms a solid basis for further growth, thus supporting our objective of becoming a significant and stable contributor to A.P. Moller-Maersk‘s profit,” said Maersk Drilling Chief Executive Claus Hemmingsen.
Maersk Drilling currently operates six jack-up rigs in the Norwegian North sea, and a further three have been ordered and are currently being built.
The contract with Statoil has a duration of two years and includes an option for one additional year.
– Flemming Emil Hansen, Dow Jones Newswires