Keppel to build new semi for SmedvigYard News // April 16, 2004
Total capital expenditure for the new semi-tender is estimated at US$94 million.
The agreement is based on the principle that Keppel will build and own the semi-submersible hull, and Smedvig will own the derrick equipment set.
Smedvig will be responsible for marketing, management and operation of the unit for a period of 10 years.
The agreement includes an option for Smedvig to purchase the semi during the period at an pre-agreed price.
The new semi-tender will be based on a similar but improved design and specification as Smedvig's West Alliance.
The new unit is intended for use on deepwater drilling operations in combination with floating wellhead platforms such as TLPs and spars in benign waters.
The new rig is scheduled for delivery in the third quarter 2005.