Houston-based Hercules Offshore has signed a five-year drilling contract with Maersk Oil North Sea UK for a newbuild jackup rig to be owned and operated by Hercules Offshore.
The new Friede & Goldman JU-2000E design jackup will be built by Sembcorp Marine's Jurong Shipyard in Singapore and used by Maersk to drill production wells on its high-pressure, high-temperature Culzean field in the central North Sea.
The total contract value is about US$420 million, which includes approximately $9million of mobilization fees. The contract is due to start mid-2016.
The rig will have enhancements to provide for greater load-bearing capabilities and operational flexibility. These enhancements are based on collaborative efforts between Maersk Oil, JSL and Hercules Offshore. In addition, this high-specification, harsh-environment (HSHE) rig will feature a 400ft water depth rating, 30,000ft drilling capacity, two million pounds of static hook load, 75ft cantilever reach, off-line pipe handling capability, 15,000 psi blowout preventer systems, high pressure/high temperature rating and accommodations capacity for up to 150 personnel.
The shipyard cost of the rig is estimated at approximately $236 million. Including project management, spares, commissioning and other costs, total delivery cost is estimated at about $270 million.
John T. Rynd, Chief Executive Officer and President of Hercules Offshore says: "Strategically, this opportunity further demonstrates our worldwide capabilities and expands our operational footprint to the North Sea with a leading operator in the region. The rig will operate in the central North Sea to develop Maersk Oil's high profile Culzean field. The decision by Maersk Oil to contract a newbuild rig with specific enhancements was driven by the unique challenges to develop this field. Given these enhancements, we expect demand for this rig in the North Sea to extend well beyond the initial five year fixed contract term, with two, one-year unpriced options."
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