Chinese Shipyard Notified to Halt on Rig Jack-up System

Dalian Shipbuilding Industry Offshore has been notified by Friede & Goldman Marketing BV (F&G) to temporarily suspend construction of its rig jacking systems.

Arising from the recent accident during the construction of a similar rig at the Jurong Shipyard in Singapore, Prospector Offshore Drilling S.A. which has four jack-up rigs  under construction in Dalian Shipbuilding Industry Offshore Co. Ltd. (DSIC-Offshore), has been informed that DSIC-Offshore has been notified by Friede & Goldman Marketing BV (F&G) to temporarily suspend work on the rigs’ jacking systems, pending testing.

F&G is the engineering firm that has designed the jack-up and which has supplied the entire jacking system through their own sub-suppliers. The F&G notice follows a recent incident involving another drilling company’s F&G design jack-up rig under construction in Singapore.

DSIC-Offshore had previously experienced issues with some of the components of the jacking systems of F&G rigs currently under construction at their yard, and was investigating the jacking systems before receiving the letter from F&G. The Company believes that these issues, to the extent they refer to its rigs, are limited in scope.

The company is cooperating closely with DSIC-Offshore, F&G and ABS, to resolve these issues. The American Bureau of Shipping (“ABS”) is an independent classification society.

The company’s first rig, PROSPECTOR 1, was previously expected to be delivered at the end of January 2013 and mobilized to the North Sea for a long term drilling contract. At this time, tthey cannot estimate any impact on the delivery date of PROSPECTOR 1 until the evaluation of the jacking system is complete, which is anticipated to be within the next few weeks.

Bill Rose, President and CEO, commented: “We appreciate the prudent steps taken by F&G and DSIC-Offshore to ensure safe delivery of a very high quality drilling unit conforming to our specifications and the highest industry standards. The F&G JU2000E jack-up is a proven design and has operated in the areas like the North Sea, and we expect a quick resolution.”