Keppel to build semi-tender for Smedvig

Yard News - July 28, 2000

Keppel Shipyard, a member of the Keppel Hitachi Zosen Group, has entered into a co-operation agreement with Smedvig Asia to build a Semi-Submersible Self-Erecting Tender Rig (SSETR).

Total capital expenditure for the new semi-tender is estimated at US$82.5 million, of which Keppel's share is US$59.5 million.

The agreement is based on the principle that Keppel Shipyard will build and own the semi-submersible hull, whilst Smedvig owns the derrick equipment set.

Smedvig will be responsible for marketing, managing and operating the rig for a 10-year period. It can also purchase the semi-submersible hull within this time frame.

The SSETR is similar in design and specifications to Smedvig's West Menang, but upgraded for increased deckload and mooring for deeper water.

Keppel Shipyard built and delivered West Menang in March 1999.

Said Mr Nelson Yeo, Executive Director of Keppel Hitachi Zosen, "This partnership is the result of the close business relationship we have developed with Smedvig in the repair, conversion and newbuilding of their drilling tenders.

"We are building this semi-tender in anticipation of the increase in offshore activities and to capitalise on the present lower cost of construction.

"With Smedvig's expertise and leadership in this market, we are optimistic about the future of this rig."

The newbuild, which is scheduled for delivery in the fourth quarter of 2001, is targeted to work on dry completion platforms such as TLPs and spars.