Hamilton, Bermuda, January 3, 2011 – Seadrill has entered into an agreement to acquire the two ultra-deepwater semi-submersible drilling rigs, Seadragon I and Seadragon II. The total project price for the two rigs, which are currently under construction at the Jurong Shipyard in Singapore, is estimated to be approximately US$1.2 billion (including project management for the remaining construction period, drilling and handling tools, spares, operations preparations and capitalized interest). Deliveries of the two rigs are expected in the first quarter and fourth quarter 2011, respectively.
Seadrill has secured new bank debt to finance the investment. The principal terms and conditions have been agreed and the debt will have a seven-year tenor and a 13-year repayment profile. The two rigs will serve as security for the new debt.
Furthermore, the first rig to be completed, Seadragon I, has a five year contract in place. However, due to postponed delivery the contract is subject to further discussions among the involved parties. The second unit, Seadragon II, has currently no employment in place.
Alf C Thorkildsen, Chief Executive Officer of Seadrill Management AS says, “We expect the demand for ultra-deepwater units to strengthen over the next years. This investment increases our exposure to this growing market segment at an acceptable price and a manageable risk. Furthermore, we are well familiar with the design of and equipment on the rigs and are pleased to be able to continue our long and strong relationship with the reputable Jurong Shipyard.”
John Fredriksen, Chairman of Seadrill Limited says, “The cash break-even cost per day for each rig including operating cost, tax, interest expenses and scheduled debt installments is expected to be around US$385,000. The Board anticipates that the purchase of the two rigs including the agreed financing will strengthen Seadrill’s dividend capacity going forward.”
The rigs are based on the Moss Maritime CS50 Mk II design and belong to a high specification, new generation drilling units, focusing on a broader specter of operational capabilities, a larger operating area, a high load carrying capacity, efficiency and improved safety and working environment as well as a special environmental focus. The dynamically positioned (DP 3 class certification) rigs are equipped with NOV drilling equipment and have water depth capability up to 10,000 ft and total vertical drilling depth capacity up to 35,000 feet. The rigs each have a single derrick with dual pipe handling and offline stand building capabilities providing for increased efficiency. The subsea well control system includes a six ram 15k psi BOP stack with two 10k psi annulars. Each rig’s variable deck-load specification is 6,200 mtons and has the accommodation capacity for 192 people.
The Department of the Interior has announced a new rule aiming to ensure that costs related to the decommissioning of offshore platforms are covered by the oil and gas industry,...
(Bloomberg) — For a company that made its name with frontier oil discoveries from Iran to Alaska, BP Plc is notably absent from today’s hottest new oil plays. The company’s...
Virginia-based energy company Dominion Energy has announced the launch of the first U.S.-built and Jones Act-compliant offshore wind turbine installation vessel, the Charybdis. A 472-foot vessel is being built at the...
April 15, 2024
Total Views: 2749
Why Join the gCaptain Club?
Access exclusive insights, engage in vibrant discussions, and gain perspectives from our CEO.
This website uses cookies to improve your experience while you navigate through the website. Out of these, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may affect your browsing experience.
Necessary cookies are absolutely essential for the website to function properly. This category only includes cookies that ensures basic functionalities and security features of the website. These cookies do not store any personal information.
Any cookies that may not be particularly necessary for the website to function and is used specifically to collect user personal data via analytics, ads, other embedded contents are termed as non-necessary cookies. It is mandatory to procure user consent prior to running these cookies on your website.