Steady as she goes . . .
  from: Offshore Engineer
  by: John Mueller
  Monday, April 07, 2008

As the steady output of semisubmersible and jackup drilling rigs and the occasional FPSO and drillship continues from Asian owned and Asia market-oriented shipyards, the number of support vessels under construction is also trending upwards. John Mueller updates his files on current project progress and highlights the latest batch of orders.

On the semisubmersibles front, the ultra-deepwater 6th generation drilling rig SS Frigstad Oslo remains on schedule for September 2009 delivery. Frigstad Discoverer Invest (FDIL), now owned by Saipem, recently held a steel-cutting ceremony for the semi at Yantai Raffles Shipyard (YRS), in Yantai, Shandong Province, China.

The SS Frigstad Oslo is of the Frigstad dual ram rig D90 design, optimised for development drilling in water depths to 12,000ft and able to drill to 50,000ft. The capex required to complete the rig, plus the mandatory purchase of the remaining shares in FDIL following its initial acquisition of over 92%, are included in Saipem’s estimated $750 million investment.

Awilco Offshore has been awarded an option to build a possible fifth semisubmersible drilling rig at YRS, exercisable until the end of 2008 with a building period of 33 months thenceforth. The option award is part of an agreement with the yard to bring forward by three months – to October 2008 – the delivery schedule for the first rig,WilPioneer.

Through Premium Drilling, Awilco also recently entered into a six-month, $40 million contract with Premier Oil Vietnam Offshore for the jackup WilBoss, under construction by Keppel Fels in Singapore and set for delivery by year-end. Daewoo Shipbuilding & Marine Engineering (DSME) of Korea is reported to have received a $633 million order from an undisclosed Latin American country to build a semisubmersible drilling rig for delivery in 3Q 2010.

Keppel Offshore & Marine subsidiary Keppel Fels landed a $206 million contract from Floatel International for a semisubmersible accommodation vessel. Delivery is expected in December 2010. Designated a KFels SSAU 3600, the semi was designed by Keppel O&M’s deepwater technology group to operate in regions outside the North Sea. The six-column unit will have accommodation for 500 people.

The Sedco 703 semisubmersible has been hired by ConocoPhillips and Karoon JV for a three-well drilling program in the Browse Basin offshore the northwest coast of Western Australia, starting in 3Q 2008 with an anticipated duration of 200-225 days.

China National Offshore Oil Corporation (CNOOC) has awarded Aker Kvaerner MH a $128 million drilling equipment contract – its first for the Chinese offshore market – for an ultra-deepwater semisubmersible drilling rig scheduled for delivery in 1Q 2011.

SapuraCrest Petroleum took delivery of its fifth self-elevating tender assisted rig (SETR), the Tioman T-10, built by Malaysia Marine & Heavy Engineering. Owned 51:49 by the SapuraCrest and Seadrill Asia joint venture through Crest Tender Rigs, the $89 million SETR’s first customer is Carigali Hess Operating Company, under a $120 million, 36-month contract.

Jackup journey

Among the latest jackup orders is one for a Freide & Goldman design Super M2 drilling rig to be constructed for the new venture established by KS Energy and Petrodrill – KSAM2 Petrodrill Offshore. It will be built at the Maritime Industrial Services yard in Sharjah, United Arab Emirates, at a cost of $152 million with delivery scheduled for 1Q 2010.

Egyptian Drilling Company (EDC), a joint venture between the Egyptian General Petroleum Corporation (EGPC) and Denmark’s AP Moller-Maersk Group, has awarded Singapore’s PPL Shipyard a contract to build a Baker Marine Pacific Class 375 (BMC Pacific 375) jackup drilling rig valued at $201 million. Delivery is scheduled for 4Q 2009.

Another BMC Pacific 375 unit is being built by PPL for the Offshore Group Corporation at a cost of $198 million. The jackup, the fourth built by the yard for this client, is slated for delivery late 2009.

Awilco Offshore recently took delivery of its third BMC Pacific 375 jackup, the WilSuperior, from PPL. The rig has gone into service with Thang Long under a one-year contract offshore Vietnam.

Scorpion International has entered into a contract with Lamprell Energy to construct a LeTourneau Super 116E class jackup drilling rig at one of the Lamprell facilities in the UAE for a first rig turnkey order price of $168 million, with options for additional jackup units. Delivery is scheduled for 1Q 2009.

Seadrill recently took delivery of its third KFels B Class design jackup,West Atlas, ahead of schedule. The drilling rig is already under charter for 480 days offshore Western Australia with Coogee Resources.

Dash for drillships

On the deepwater drillships front, Transocean has exercised its option to purchase for $238 million a 50% interest in a joint venture company with Pacific Drilling, which will own two ultra-deepwater Samsung-design drillships under construction in South Korea. Under an exclusive marketing agreement, Transocean has secured a firm commitment for a four-year drilling contract for the JV’s first drillship, Deepwater Pacific 1, expected to begin in 3Q 2009. Estimated to cost $685 million, this rig will be equipped to work in water depths of up to 12,000ft and outfitted to construct wells up to 35,000ft deep. Deepwater Pacific 2, costing $665 million, will be 10,000ft water depth rated, upgradable to 12,000ft, and is expected to be completed in 4Q 2009.

Meanwhile Transocean’s newbuild drillship program at another Korean yard, Daewoo Shipbuilding & Marine Engineering (DSME), continues apace. Following the keel-laying for Discoverer Clear Leader, first steel was cut recently for Discoverer Americas. Due for delivery in 3Q 2008 and 2Q 2009, respectively, these are the first two of four enhanced Enterpriseclass drillships Transocean has ordered from DSME. Designed to operate in water depths to 12,000ft and drill wells 40,000ft deep, they are destined for service on long-term contracts in the Gulf of Mexico along with the third ship, Discoverer Inspiration, while the fourth, as yet unnamed, will go into service off Angola.

Pride International has acquired an ultra-deepwater DPS3 drillship, currently under construction at Samsung’s Geoje yard, at an estimated cost of $675 million. Delivery is expected in 1Q 2010. The former owner, Lexton, an affiliate of the Tanker Pacific group of companies, will receive $108.5 million at commissioning. The 10,000ft water depth rated drillship, the second with the yard, is based on an SHI proprietary hull design measuring 750ft long and 140ft wide with a variable deck load of 20,000t.

Seadrill has taken up a turnkey contract to have a third ultra-deepwater drillship built in Korea for $598 million. Scheduled for delivery in mid-2010, the SHI-designed rig will be able to operate in 10,000ft water depths and is similar to two other Seadrill semis under construction at the Samsung yard.

An undisclosed client has engaged Keppel Shipyard to install equipment packages valued at $100 million on a new 12,000ft water depth rated drillship. The hull, under construction in China and due to arrive in Singapore in 3Q 2008, will have owner-supplied power generation, thrusters and drilling equipment packages installed. Completion is slated for 4Q 2009.

A major life-enhancement and upgrade project involving Transocean deepwater drillship Discoverer 534 was completed recently at Singapore’s Sembawang Shipyard. Following a deepwater well assignment in Pakistan, the upgraded vessel is booked for a 30-month exploration drilling and field development stint in India.

Aker Kvaerner MH has been awarded two drilling equipment contracts, valued at $213 million, by DSME in Korea. One contract is for a single drillship, and the other for a semi. The semi is to be delivered 3Q 2010, and the drillship the following quarter.

Floating pair

The first of two FPSOs under conversion for Tanker Pacific Offshore Terminals at Jurong Shipyard was christened Raroa during a 12 November naming ceremony at the Singapore yard. The vessel – the former 92,802dwt tanker Andaman Sea – is scheduled for delivery in February 2008 and will be leased to OMV New Zealand for deployment on the Maari field in New Zealand’s Taranaki Basin. Raroa will have a processing capacity of 40,000b/d with approaching 650,000 barrels storage.

Jurong is also converting the 148,255dwt oil tanker Freeway into an FPSO to be renamed Montara Venture and deployed on Australian operator Coogee Resources’ Montara field. Due for completion in 3Q 2008, Tanker Pacific’s second FPSO will have 40,000b/d processing capacity and storage for 900,000 barrels. Like Raroa, Montara Venture is designed to operate for 15 years without drydocking.

PetroVietnam subsidiary Petroleum Technical Services Corporation (PTSC) has entered into a 60:40 joint venture with Petronas subsidiary MISC Berhad to purchase and convert the vessel M/T Cherry II into an FPSO for the Ruby field, located in blocks 01/02 offshore Vietnam.

With a processing capacity of 45,000b/d and 600,000 barrels storage, the $275 million FPSO will be chartered for eight years. MISC is responsible for the purchase of the vessel and its engineering, procurement, life extension and conversion, with PTSC handling field installation.

Keppel Shipyard has the conversion contract for a new Prosafe Production FPSO. The yard is converting the 101,830dwt tanker M/T Kudam into an FPSO – the Umuroa – due to go into service on Apache’s Theo-Van Gogh deepwater oilfield off Western Australia (OE October). The job will be kicked off at the Subic Shipyard & Engineering facility in the Philippines, then completed in Singapore by late 2008. Moored with a disconnectable internal turret, the FPSO will be able to store 700,000 barrels of fluids, produce 63,000b/d of oil and compress 80mmscf/d of gas.

Another Keppel contract, from Perenco, involves converting a 138,100dwt tanker into the FSO Kalamu with an oil storage capacity of around 1 million barrels, for mooring by a soft yoke arm off the coast of the Democratic Republic of Congo. Completion is set for 1Q 2008.

Sevan Marine has signed a financial mandate to arrange construction financing of $150 million and a five-year term loan of $300 million for the FPSO Sevan Voyageur, now in the final stages of construction at YRS in China. The vessel was due for transportation in 4Q to a European shipyard for topside hook-up and commissioning.

Support vessels

Norce Offshore has signed a $43 million deal with Tiong Woon Oil & Gas Services for the construction of a derrick/pipelay barge, scheduled for delivery in 4Q 2008. Tiong Woon will be responsible for building the hull and major sections of the vessel and equipment installation at its 64ha yard on Bintan Island, Indonesia. The 146m long, 25,000t derrick pipelay barge will be equipped with an 1100t crane, mooring system and pipelay equipment capable of operating in water depths to 200m and handling pipe up to 48in diameter.

Global Offshore International, a wholly-owned subsidiary of Global Industries, has placed a first time order with Keppel Singmarine for a 163m long combination derrick/pipelay vessel costing $240 million (OE November). Equipped with two electric propulsion thrusters, six positioning thrusters, a 1200t crane and pipelay equipment capable of operating in water depths of 10,000ft and handling 60in diameter pipe, the new generation vessel will be able to transit the Panama and Suez canals.

SBM has been contracted by the Chinese Offshore Oil Engineering Company for the design, project management and supply of components for a 4000t offshore crane to be installed on COOEC’s DPV 7500 pipelay/crane vessel. Delivery is scheduled for 1Q 2010.

Another offshore crane is to be supplied under a $53 million contract by Hydralift AmClyde, a unit of National Oilwell Varco, for installation on an in-house designed Swiber Engineering barge. The 4180t lift capacity M-80 derrick crane is scheduled for delivery in 3Q of financial year 2009.

Singapore-based Ezra Holdings has awarded a $230 million contract for the design and construction of two 27,000bhp, 300t bollard pull multi functional support vessels (MFSV) to Norway’s Karmsund Maritime Service. The price tag includes such equipment as an ROV hangar and foundations for a heave-compensated offshore crane and A-frame. The first of these North Sea capable vessels is due for delivery in the first half of 2010 and the second six months later.

Ezra also recently named its first heavylift, accommodation and pipelay vessel, the Lewek Champion, on Batam Island, Indonesia. Ezra subsidiary Emas Offshore Construction & Production said it had secured a major pipelay and construction contract for the unit from an unnamed oil company.

Hallin Marine has signed a contract for the construction of an 80m DP2 subsea operations vessel, the Windermere, scheduled for delivery in 2Q 2010 from the Singapore yard of Drydocks World (formerly Pan-United Marine).

The Windermere, being built at an estimated cost of nearly $50 million, will be fitted with a saturation diving system and remotely operated vehicle, a 50t heave compensated crane and diesel electric propulsion.

China’s Keppel Nantong Shipyard, a Keppel Offshore & Marine subsidiary located 110km northwest of Shanghai, has secured three contracts worth a total of $76 million to build eight tugs. Among the latest orders is one from Dutch contractor Smit Internationale Beheer for two 90t bollard pull offshore support tugs with anchor handling, diving support and fire fighting capabilities, for delivery in the first half of 2010. Keppel Smit Towage and Maju Maritime – 51:49 joint ventures of Keppel O&M and Smit Internationale respectively – have each ordered three 65t bollard pull twin-screw Azimuth Stern Drive (ASD) tugs built to MTD 3265ST design, all for delivery in 2011.

Swissco Offshore, a subsidiary of Singapore-based Swissco International, has placed orders for six more offshore support vessels, with a combined cost of $19 million, to augment its current fleet of 25 vessels. A 55m ASD anchor handling tug supply boat and a 40m offshore support vessel are slated for delivery in the first half of 2009 from an unidentified shipyard in southern China at a cost of $10 million. During the same period, two identical 36m offshore utility vessels are to be delivered from a Guangzhou shipyard in China. And two identical 26m multi-purpose workboats are on order with a Miri shipyard in East Malaysia, with delivery expected in the second half of 2008.

Mosvold Supply has exercised an option to build two additional VS 491 CD large anchor handling vessels at the Batamec Shipyard, on Indonesia’s Batam Island, at a combined cost of $167 million. They are to be delivered end 2010 and mid-2011, respectively.

First time customer Greatship Global Offshore Services, wholly-owned by Greatship India, has engaged Keppel Singmarine for the construction of four 94m, 4600dwt DP2 platform supply vessels at a total cost of $100 million. Keppel Singmarine has also been contracted by Hadi H Al-Hamman Establishment to build two DP2, 60t bollard pull anchor handling tug/supply vessels for operations in the Middle East and by Lukoil- Kaliningradmorneft to build two Ice-Class multi-purpose standby and rescue vessels for the Caspian Sea.

UP Offshore (Bahamas) has placed a repeat order with India’s Bharati Shipyard for the design, construction and supply of two PSVs for a total contract value of $44 million. Bharati has two yards, Ghodbunder and Ratnagiri, the latter located 365km south of Bombay on the west coast of India.

Deep Sea Supply has taken delivery of Sea Otter, a 6500bhp AHTS vessel from ABG Shipyard in India. It has been chartered to ConocoPhillips in Indonesia at a day rate of $17,500 for four months. Deep Sea Supply also recently took delivery of Sea Angler, the third in a series of eight UT 755L design PSV newbuilds from Cochin Shipyard in India. It has been chartered by Eni Congo.

ASL Marine Holdings of Singapore has secured new shipbuilding contracts worth $68 million from undisclosed European clients for a 90m long by 22m wide DP2 subsea operations vessel capable of accommodating 108 personnel, two rotor tugs and two self-propelled split hopper barges. OE

Yards of plenty

Complementing the ongoing robust construction market for all types of offshore rigs and vessels is a flurry of shipyard investment by Asian-based yards in fabrication facilities both in the Asia Pacific region and beyond.

Keppel Offshore & Marine has officially opened its new wholly-owned subsidiary, Keppel Nantong Shipyard Company, in Nantong, Jiangsu province, China. The ceremony was marked by the sale of two 45t azimuth stern drive tugboats to Arabian Gulf Mechanical Services & Contracting of Kuwait and the keel laying for two AHTS vessels for UAE-based Whitesea Shipping & Supply. Located along the Yangtze River, 100km northwest of Shanghai, the yard has a capacity to build up to 25 support vessels on its 16ha site.

Swiber Holdings has acquired Singapore’s North Shipyard for $6.8 million. The 2.4ha yard, which has 124m of water frontage, will primarily serve as a marine base to support restoration and modernisation work for Swiber’s growing fleet of marine support vessels.

Dubai Drydocks World has made a conditional cash offer of $1.63 billion for Labroy Marine of Singapore. Labroy, a marine construction and engineering group with core businesses in shipbuilding, ship repair, offshore rig construction and shipping, has two full-service shipyards on Batam Island, Indonesia and a large and diversified fleet of vessels.

SembCorp Marine has reportedly invested $20 million in securing a 3.31% interest in an Indian west coast facility, the 85ha Pipavav Shipyard located near Pipavav Port, Gujarat.

Another Gujarat yard, ABG, is expanding its Surat facility with the addition of two 400m long dry docks to accommodate vessels up to 120,000dwt. ABG is currently converting the Sea Wolverine, released from a cancelled contract with Swiber, to a DP1 vessel at ABG, with completion due by year-end.

Jurong Shipyard, a SembCorp Marine subsidiary, and WTorre Empreendimentos Imobiliários have signed a memorandum of understanding to jointly own and operate a shipyard located in the southern Brazilian city of Rio Grande. Due for completion in mid-2008, the facility is targeting construction and repair of semisubmersibles, large production platforms and ship-shaped FPSOs.

Jaya Offshore (HK), a subsidiary of Singapore-based Jaya Holdings, has acquired China’s Nantong Dongjiang Shipyard for $5 million in cash. The 2.4ha facility, located on the northern bank of the Yangtze River in Jiangsu province, leases another 16ha with 800m of shoreline. Jaya, majority owned by Affinity Equity Partners, operates shipyards in Singapore and on nearby Batam Island.

Hong Kong-headquartered Titan Petrochemicals has acquired 100% of the Titan Quanzhou Shipyard in China’s Fujian province for a total consideration of $170 million. Situated in the southern part of Meizhou Bay’s economic zone, the new 110ha yard’s initial focus is on bunker tankers, the first two of which were launched in August and September. Further development is under way to facilitate construction and repair work on vessels up to 100,000dwt as well as topside modules, semisubmersibles and jackup rigs. OE

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