COSL Orders Two More Offshore Drilling Rigs (China)

After China Oilfield Services Limited, better known as COSL, earlier this week announced it bought two under-construction jack-up rigs, it seems that the company is expanding its rig fleet some more.

According to ShinoShipNews, the company has awarded a construction contract for two offshore drilling rigs to one of the China’s largest shipyards, Dalian Shipbuilding Industry Co (DSIC).

As reported by the Chinese maritime news website, DSIC has beaten stiff competition in bidding for the job. The scope of work encompasses construction of one jack-up rig and one semi-submersible drilling rig.

SinoShip, quoting a source close to the matter, further said that the rigs are expected to be completed in three years.

COSL did not immediately respond to an e-mail seeking comment, sent by Offshore Energy Today.

According to the forecast of Spears & Associates in April 2013, the total market value of oilfield services in 2013 will maintain a growth of around 9% and reach US$398.4 billion. In the second half of 2013, according to the statistic of IHS-ODS, it is expected that the overall daily rate of global jack-up drilling rigs market will increase by 13.9% compared with the same period of last year, and the overall daily rate of semisubmersible drilling rigs (including deepwater drilling boat) will increase by 12.4% compared with the same period of last year.

The recovery speed of large equipment segment such as drilling rig is relatively faster, however, market competition is still fierce. For the Chinese market, major customers continued to strengthen exploration. They have enhanced the deepwater exploration in South China Sea, as well as operation volume of geophysical and surveying services and drilling services. Also, COSL expects that the demand for well services and marine support and transportation services will significantly increase.

[mappress]
Offshore Energy Today Staff, August 22, 2013