Consortium eyes up to five jack-up newbuilds

AUGUST 27, 2014 — Singapore listed SBI Offshore Limited says that a consortium of Middle East and Chinese parties has expressed its interests in building up to five jack-up rigs capable of drilling in water depths of up to 110 meters.

Earlier, on August 19, SBI Offshore reported its subsidiary, SBI O&M Pte Ltd, had signed a US$24 million contract with the consortium to provide design and engineering services for an offshore jack-up drilling rig.

SBI Offshore says it has now started negotiations with the consortium on the management and construction of the rigs, which are expected to be deployed in the Middle East and various parts of Asia.

The price of each rig will depend on its specifications, equipment type and make, fabrication yard, delivery and financing terms.

If the negotiations are successful, the first rig is expected to be built in a regional shipyard, possibly in China or Singapore. Each rig will require at least two years to build and all the rigs are expected to be completed in about six years.