Maersk Drilling received a contract extension for its newbuild ultra-harsh environment jackup XL Enhanced 2 from Det norske oljeselskap ASA. The two-year extension allows the jackup to service the Ivar Aasen project for a total of five years. Det norske will have the option to extend for a total of seven years. The estimated value of the two-year contract extension is approximately US$280 million, bringing the total estimated contract value to approximately US$700 million.
Svein Ola Syrstad, Vice President Drilling in Det norske, said the extension ensures rig capacity for the initial drilling and completion activities at Ivar Aasen field, which is thought to contain approximately 150 MMboe.
The rig is currently under construction at the Keppel FELS shipyard in Singapore. Commencement of drilling operation is scheduled for late 2014 following delivery of the rig from the shipyard and mobilisation to the North Sea. The rig will be used for drilling on the Ivar Aasen development in the Norwegian North Sea.
“The extension of the contract for XL Enhanced 2 confirms the need for high specification rigs in Norway and is a confirmation of our strategy to expand our position in the Norwegian jack-up market and consolidate our market leading position in this segment in Norway,” says Claus V. Hemmingsen, CEO of Maersk Drilling and member of the Executive Board of the A.P. Moller-Maersk Group.
The XL Enhanced 2 rig is the second of three XL Enhanced jack-ups ordered by Maersk Drilling in 2011 and 2012. The three rigs have delivery from yard in 2014 and 2015 and have all secured long term contracts. The XL Enhanced design is a further enhanced version of the existing ultra-harsh environment jackups Maersk Innovator and Maersk Inspirer. Like their sister rigs, the three new rigs are designed to operate in the harsh environment found in the North Sea and comply with all rules and regulations in the strictly regulated Norwegian sector.