High Shipping Costs Are Here to Stay, Says Bloomberg
By Henry Ren (Bloomberg) Stubbornly high shipping expenses for businesses are getting sealed into contracts for the next 12 months, forcing companies to pass the extra costs on to consumers....
Offshore drilling contractor Transocean says it has reached a deal with Singaporean rigbuilder Keppel to delay the delivery and payments of five high-specification jackup drilling rigs until 2020.
The five Super B 400 Bigfoot Class rigs were ordered in 2013 and due for delivery beginning in the first quarter of 2016 followed by one delivery every four months.
The rigs are now scheduled to be delivered in two and three month intervals beginning in the first quarter of 2020.
Transocean ordered the rigs in 2013 for a cost of $1.1 billion excluding interest.
The Super B 400 Bigfoot Class jackup is a propriety design by Keppel FELS that can operate in water depths up to 400 feet and drill to wells up to 35,000 feet. The rigs are configured with Transocean-developed features including offline tubular handling capabilities, superior jacking and preload capabilities, a flexible mud system, and simultaneous operations support, according Transocean.
The delay is the latest for offshore companies who have either delayed projects or cancelled orders to combat the collapse in oil prices over the last 18 or so months.
Join the 67,634 members that receive our newsletter.
Have a news tip? Let us know.