Seadrill Orders New Drilling Rig For ConocoPhillips Contract

March 21, 2011 - PRLog -- Seadrill said Monday that it had entered into a $530 million agreement with the Jurong shipyard in Singapore to construct a new jack-up drilling rig, and that it has brokered a five-year deal with ConocoPhillips for the oil firm to utilize the rig.

Seadrill said in a statement that the rig is due to be completed at the end of the third quarter of 2013 and that the contract price includes project management, drilling and handling tools, spares and capitalized interest.

The rig will be contracted to the ConocoPhillips energy firm for a five-year period for use on the Norwegian Continental Shelf. Seadrill said the estimated contract value is $680 million, including mobilization, and that the contract is expected to commence in the fourth quarter of 2013.

However, the contract with ConocoPhillips is subject to Norwegian Government approval of the Plan for Development and Operations for Ekofisk South and Eldfisk II.

The jack-up drill ship is an advanced, ultra large, harsh environment, and high specification drilling unit which will be built to Norwegian requirements and match the specification of the largest jack-up drilling units in the world, according to Seadrill.

"This is Seadrill's first assignment for ConocoPhillips on the Norwegian Continental Shelf, strengthening the industrial cooperation between the two companies," said Seadrill Management AS' chief executive officer Alf Thorkildsen.

Author: Paul Chapman, analyst.

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