The pact comes after Keppel’s offshore and marine arm secured a contract in December from the Brazilian drilling-rig holding company to build one semisubmersible rig, the company said in a statement.

Keppel said the letter of intent is meant to “facilitate (Keppel Offshore & Marine Ltd.’s) preparation work on these potential projects, pending the signing of the final construction contracts.” It didn’t specify when the latest deal could be finalized.

The December contract was worth US$809 million. All six rigs will be used in the exploration of Brazil’s offshore oil and gas fields, Keppel said.

Sete Brasil–backed by seven Brazilian companies including state oil giant Petroleo Brasileiro SA, or Petrobras–was formed to put financing in place for Petrobras’ massive rig-building program.

Analysts said the latest rig-order awards, while significant, have been anticipated for some time. Keppel and its Singapore-based peer Sembcorp Marine Ltd. (S51.SG) were seen as frontrunners to secure significant contracts from Brazil since Petrobras launched a 21-rig tender process last year.

The news “has been expected, and the main question was whether the contracts would come in a single package or in separate packages,” an analyst at a local brokerage said. Nonetheless, the “eye-catching headline could trigger a knee-jerk reaction” from investors, said the analyst, who declined to be named.

-By Chun Han Wong, Dow Jones Newswires

Copyright © 2012 Dow Jones & Company, Inc.

About the DSS^TM 38E Rig Design

The DSS^TM 38E design is an enhancement of Keppel’s proven fifth generation deepwater solution, the DSS^TM 38. With improved capability and operability, the DSS^TM 38E is well suited to meet the stringent requirements of the deepwater “Golden Triangle” region, comprising Brazil, Africa and the Gulf of Mexico.

Jointly developed and owned by Keppel’s Deepwater Technology Group and Marine Structure Consultants, the DSS^TM 38E design is rated to drill to depths of 10,000 metres below the rotary table in 3,000 metres water depth. Its operational displacement is approximately 45,000 tonnes. Each rig will have accommodation facilities to house a crew of up to 160 men. The vessel is designed to stay in position via eight Azimuthing thrusters and the configurations comply with the American Bureau of Shipping Dynamic Positioned System (DPS-3) requirements.

“The decision to invest in additional offshore drilling rigs is based on our strong view on the fundamentals of the offshore drilling industry and our ambition to further strengthen our position in the markets we have chosen to be in,” says A.P. Moller – Maersk Group CEO, Nils S. Andersen.

The rigs will represent a new generation of jack-up rigs. The design is an enhanced version of the proven Gusto MSC CJ-70-150MD design and includes a number of features that will further improve the rigs’ drilling performance.  The rigs are especially suited for operation in the harsh environment of the North Sea at water depths up to 150 metres. The high capacity features include offline pipe handling and simultaneous operations as well as an enlarged  cantilever reach,  which will significantly increase the drilling efficiency compared to conventional units. The enhanced design also includes multi-machine control on the drill floor, which will allow for a degree of automation to ensure a safe operation and consistent performance. A total of 150 people can be accommodated on board in single cabins.

“The order is consistent with our strategy to further solidify our position as a leading operator of ultra harsh, high capacity drilling rigs,” says Claus V. Hemmingsen, CEO of Maersk Drilling. “These rigs are designed to meet the customers’ increasing demand for safe and highly efficient drilling operations and the enhanced features of this design will make the rigs superior to other rigs in the market. “

The new rigs are targeted for the Norwegian market and will comply with the strict regulatory rules in Norway. “We believe in continued strong demand for high capacity jack-up rigs on the Norwegian Continental Shelf, and have a strong track record since 1989 of operating in this challenging environment.  Our commitment to build another two ultra harsh, high capacity rigs has been well received by our customers,” says Claus V. Hemmingsen.

In addition to the two jack-up rigs just ordered, Maersk Drilling’s modern fleet counts 26 drilling rigs including deepwater semi-submersibles, high-end jack-up rigs and cantilevered drilling barges.

Photo: Maersk Drilling’s ‘Inspirer 1′ rig courtesy Maersk Drilling

During the construction period, 32,000 thousand direct and indirect jobs are hoped to be created in eight years. In the operation phase, meanwhile, there will be 10,000 new positions (direct and indirect) for a period of 10 years.

The winner of this first lot was the Estaleiro Atlântico Sul shipyard (EAS), located in the state of Pernambuco, for a final price of $4,637,000,130.00, i.e., $13,000,000.00 less than the original proposal. Slated to start operating in 2015, each rig’s final price was set at $662,428,590.00.

The charter contract will be signed with Sete Brazil S.A. (Sete BR), which will take on the construction contract with EAS. Sete BR is a company formed by the Fundo de Investimentos em Participações – FIP Sondas, which is managed by the Caixa Econômica Federal (CEF), owns 90% of the company, and will have market investors as shareholders, including Brazilian pension funds and investment banks. Petrobras will hold a 10% stake in the new company.

Sete BR will allow companies that are experienced in operating rigs while providing services hired by Petrobras to be partners and co-owners of the drilling vessels. The daily charter rate has already been defined and, when added to the current average operation rate, totals $430,000 to $475,000 per day, in line with the most competitive rates practiced on the international market.

To finance rig construction, Sete BR will count on its own capital, on capital provided by partners, and on resources derived from long-term funding granted by the National Development Bank (BNDES), which will fund the portion related to the Brazilian good and service content for the construction of each rig. Additionally, there will be resources coming from the export development agencies of the countries that provide the content to be imported and from commercial banks. To their benefit, the funders will have a performance guarantee hired by the EAS shipyard and a credit guarantee contracted by Sete BR, both supplied by the Shipbuilding Guarantee Fund (FGCN), which had its capacity expanded specifically to address this type of guarantee.

With the Rig Project, Petrobras aims to foster conditions for it to be technically and economically feasible to build next-generation platforms to operate in deep and ultra deep waters in Brazil, as it did with production platforms, which today are entirely produced in the country and within global quality parameters.

The Executive Board also decided to cancel another bid that was in progress for the hiring of up to two drilling rigs on account of the prices that were quoted, as they were not advantageous to the Company.The third bidding process, to charter lots of up to four drilling rigs, is still under review and is expected to be completed within 30 days.

Keppel FELS Limited (Keppel FELS) has secured a contract to build two enhanced KFELS Super A Class harsh environment jackup rigs from a subsidiary of Ensco plc at a shipyard price of about US$440 million.

These rigs are scheduled for delivery in the second and fourth quarters of 2013. As part of its contract with Keppel FELS, Ensco has options to order two more similar jackup units.

Mr Dan Rabun, Chairman and CEO of Ensco plc, said, “The new rig orders reflect our commitment to continually high-grade our fleet. Operators’ requirements will continue to increase over time and it is Ensco’s strategy and intention to maintain our position at the high end of the premium jackup market.

“Keppel-designed rigs, which make up about 20 percent of our current jackup fleet, have been delivering exceptional performance. The new KFELS Super A Class rigs, which are being customised to Ensco’s requirements, will give us even more high-specification assets to match the drilling demand for increased drilling capabilities in each market.”

Mr Tong Chong Heong, Chief Executive Officer of Keppel Offshore & Marine, said, “The KFELS Super A Class hails from our proven KFELS MOD V-A Class jackup, which has been widely deployed by our international customers, including Ensco. This new generation rig is a showpiece of our cumulative experience in designing and constructing cutting-edge harsh environment solutions.

“In choosing to build up to four units of this innovative design, our faithful customer Ensco has given strong endorsement to the KFELS Super A Class, which is well-suited for operating conditions in the UK, Danish and Dutch sectors of the North Sea. We are pleased to take our partnership with Ensco to the next level and support its ongoing enhancement of an already advanced drilling fleet.”

A viable and cost-effective solution for harsh environments and cold climate areas, the new KFELS Super A Class boasts the distinctive qualities of Keppel FELS’ proven jackup rig designs.

The KFELS Super A Class rig can operate in water depths of 400 feet and drill to depths of 40,000 feet. It features advanced automated drilling systems with 2.5 million pounds of static hook load, a spacious deck and comprehensive amenities for the comfort of a 150-person crew. It also has an offline stand building capability to handle drill pipes efficiently, boosting overall rig performance and productivity.

For enhanced operational safety, the KFELS Super A Class is equipped with the latest pinion overload detection, rack phase difference detection, and brake failure and overload protection devices, thus meeting even the stringent Health, Safety and Environment (HSE) standards of various sectors in the North Sea.

As their 3rd Quarter conference call seemed to allude to, Transocean has just signed an agreement with PPL Shipyard in Singapore to purchase a Pacific-class high-specification jackup rig, currently under construction.  Houston-based offshore drilling contractor Atwood Oceanics, placed a $365 million order for two of these same rigs back in October.

With worldwide utilization of these high-spec jackups in excess of 90 percent, day rates for these specialized rigs is starting to creep into the $150k range.

The press release from Transocean is below.

Transocean Ltd. (NYSE: RIG) (SIX: RIGN) today announced that it has reached an agreement to purchase for $195 million a Pacific Class 400 design jackup under construction at PPL Shipyard Pte Ltd. Delivery of the high-specification jackup is expected in the fourth quarter of 2011.

The jackup rig, which is PPL Shipyard’s latest proprietary design, is capable of operating in water depths up to 400 feet and constructing wells 30,000 feet deep. It will feature the most advanced offshore drilling technology, including offline tubular handling features and simultaneous operations support. In addition, the rig will have accommodation for 150 personnel.

“Our decision to purchase this unit reflects our belief in the strengthening fundamentals of the high-specification jackup market and our strategy to increase our participation in this part of our business,” said Steven L. Newman, Chief Executive Officer of Transocean Ltd. “The one-year delivery schedule gives us sufficient time to pursue a number of opportunities available in the marketplace to secure an attractive contract for the rig.”

Ever wonder how a huge FPSO is delivered to it’s destination? Shipspotting forum points us to Seven Marine’s photos of a recent heavy lift operation:

The FPSO Sevan Voyageur left Yantai Raffles Shipyard in China this morning. The FPSO is placed onboard a dry tow vessel and is on its way to the Keppel Verolme shipyard for topside hook-up and commissioning. FPSO Sevan Voyageur will be installed on the Shelley field in the central UK North Sea in 2008, under a five year contract with Oilexco North Sea Ltd.

Full sized photos HERE.

gCaptain received the above photo via our gCaptain Tip Line. Here is the official news on the incident from PEMEX;

MEXICO:  PEMEX confirmed that a fire occurred on the Kab 101 platform on Nov. 13.  The fire was caused by a spark generated during repair work to control the natural gas leak that began on Oct. 23.  No one was injured.  The fire later was extinguished in the Kab 121 well.

Meanwhile, work continues to clean the oil spilled during the original incident on Oct. 23.  An overflight revealed that the oil has traveled about 125 kilometers (78 miles).  Another overflight will take place next week to monitor the progress of the clean-up. Click to continue…

Our tipster also suggested that fatalities occurred despite PEMEX’s denial of any injuries. We have not confirmed any of the above comments and have already made one mistake related to this incident so if you have information or links this please write a comment below.

For a look at a discussion on the cause and effect of the Deepwater Horizon Oil Rig Tragedy and read the blog post “Deepwater Horizon Explosion – Breaking News” for a real time look at the events behind a modern oil rig explosion & fire.

_____________________
A message from our sponsor: Click to read about Oil Rig Fire PTSD (Post Traumatic Stress Disorder)