Jurong Gets $404M Semi-Sub Option

Jurong Shipyard said that SeaDrill Limited (SeaDrill) has exercised the option to build the second unit of the 6th generation ultra deep water semi-submersible drilling rig at a contract value of $404 million. The contract price is based on a turnkey contract with all owner-furnished equipment (OFE) including the 7,500 feet of riser and BOP. In connection, SeaDrill awarded Jurong Shipyard an additional option to build a third unit of the semi-submersible based on the same design and at comparable terms. This option takes effect in August 2006. The second unit of the Friede & Goldman ExD-designed semi-submersible rig, originally on a three-month option and effective October 2005, takes immediate effect with delivery scheduled in November 2008. Don Lee, Senior General Manager of Offshore Division said, “We are pleased that SeaDrill has taken the decision to exercise the option and at the same time executed a second option to build a similar ultra deepwater semi-submersible rig with Jurong Shipyard. This in itself is demonstrative of the confidence that rig owners have on the future demand for deepwater rigs driven mainly by high oil prices and increased development drilling activities.” John Fredriksen, Chairman of SeaDrill Limited said “With a total fleet of 12 units plus two further options and strategic ownership positions in Ocean Rig and Apexindo, we are on track to make SeaDrill into one of the leading offshore contractors within the next five years. The existing units and the newbuilding program give SeaDrill a unique position among the drilling contractors, as one of the only contractors who are positioned for significant organic growth in the coming years.”