CIMC wins 2+4 Semi-Rigs

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Limassol, Cyprus, 11 January 2013, Subsidiaries of Frigstad Deepwater Ltd have entered into turnkey construction contracts for the delivery of two ultra deepwater semi-submersible drilling units from CIMC Raffles in Yantai, China, with options for another four units. The 7th generation drilling units are of the Frigstad D90™ design, developed by Frigstad Engineering and tailor made for safe and efficient exploration and development drilling in ultra-deep waters. The rigs will be capable of operating in water depths up to 12,000 feet and drilling to a total depth of 50,000 feet. The units will be outfitted with a DP3 dynamic positioning system, full dual activity hydraulic drilling package with 2 x 1,400 ST hoisting capacity and 2 x seven ram BOPs. The first two drilling units are scheduled for delivery at the end of Q4-2015 and Q2-2016 respectively and the total project cost is approximately USD 1,3 billion exclusive of financing cost. The construction, marketing and operation of the rigs will be managed by Frigstad Offshore. Simen Skaare Eriksen, CEO of Frigstad Offshore Pte Ltd and Director of the Frigstad Deepwater Ltd subsidiaries placing the orders, says in a comment: “With these new-build orders, we continue building a solid foundation for further growth and developing the company into a leading operator of ultra deepwater drilling units at the very top end of this highly attractive market segment. These rigs represent yet another significant step forward in terms of equipment specifications, operational efficiency, flexibility and reliability, and we will be well positioned to take advantage of a strengthening ultra deepwater market. “After the CIMC Group’s takeover of the Yantai Raffles yard, we have seen considerable improvements to infrastructure and execution skills at the yard, which provides us with confidence in their ability to deliver a successful project.”