Explorer 1 to be delivered on time13 Dec 2016 16:34
http://tinyurl.com/gsbxex2
Image: Photo of Yangzijiang yard
YZJ Offshore Engineering, a subsidiary of Singapore-listed Chinese shipbuilder Yangzijiang Shipbuilding, is expected to complete and deliver a jack-up drilling rig on schedule, bucking a trend that has seen rigs and drillships being deferred amid weak oil prices.
IHS Fairplay was informed that the rig, Explorer I, will be delivered to Mena Offshore Investments by year-end. Mena Offshore Investments was established to build, sell and lease drilling rigs.
Amedeo Resources, a UK company listed on the Alternate Investment Market (AIM), has a 47.5% interest in a joint venture with Yangzijiang Shipbuilding, which in turn have a 40% interest in YZJ Offshore. This gives Amedeo Resources an 19% indirect investment in the yard. The other shares of YZJ Offshore are held by Creon Resources Plc, which is also listed on AIM.
Philip Howdle, a shareholder of Amedeo Resources, told IHS Fairplay: “Obviously, over recent years, we have seen a real downturn in the demand for new rigs, due in no small part to the decline in oil prices. Hopefully, as that begins to increase, helped by the recent OPEC supply cut, the JV should be ideally placed to attract new global orders.”
The rig is capable of drilling to 30,000 feet in sea depths of up to 350 feet. Up to 120 people can be accommodated in the rig. Originally ordered for USD170 million in 2013, the rig was constructed after YZJ Offshore built a new yard. The order marked Yangzijiang's first rig contract.
IHS Fairplay was told that the rig will be delivered at the stated price.
In a recent earnings briefing, Amedeo Resources stated: “While the rig market in general may be oversupplied, YZJ Offshore’s first rig is a Le Tourneau Super 116 Enhanced Class self-elevating mobile offshore jack-up. The Le Tourneau is the most established design in the offshore world. It has a very popular footprint, i.e, its legs space dimension is one that has been used for many years and for many wells. Other rig designs don’t have this significant advantage.”
Le Tourneau was recently acquired by Keppel FELS, a unit of Singapore group Keppel Corporation.
Amedeo Resources said: “Moreover, in the current newbuild market, there’re no Le Tourneaus that have been built on speculation. All have been ordered for clients and by clients.”
Sign In
Follow the stocks
