First steel cut for Awilco’s newbuild rig
Offshore drilling contractor Awilco Drilling has said that the first steel has been cut for its second rig under construction at a Keppel yard while the construction on the first rig is going as planned with delivery scheduled for March 2021.
Awilco owns and operates two 3rd generation mid-water semi-submersible drilling rigs, WilPhoenix and WilHunter.
In 3Q 2019, the WilPhoenix was in continued operations for Shell at the Heron location. The rig’s current contract with Shell is expected to end in late November/early December.
Revenue efficiency for the quarter was 96.2%. Contract utilization was 100%. At the end of September, WilPhoenix had a total remaining contract backlog of approximately $7 million.
During 3Q 2019, the WilHunter was cold stacked in Invergordon where it has been since 2016.
The company has on order two newbuild rigs of Moss CS60 ECO MW design equipped for drilling in harsh environments, including the Barents Sea. The first rig was ordered in March 2018 and the second one a year later, in March 2019. Both rigs are being built by Keppel FELS.
Awilco said in its 3Q 2019 report on Tuesday that construction continued on Rig #1 in accordance with the contract and scheduled delivery in March 2021.
The company also informed that the first steel for Rig #2 was cut during 3Q 2019 and scheduled delivery is in March 2022.
Remaining capital commitments in respect of the two newbuild rigs total $766.9 million.
Awilco cuts losses
Awilco also on Tuesday reported a contract revenue of $10.3 million compared to $3.2 million in the same period last year.
The company recorded a net loss of $0.9 million in the third quarter of this year compared to a $10.2 million loss in 3Q 2018.
According to Awilco, demand for modern high-end semi-submersibles in Norway remains strong with early indications of positive rate development as contractors await the next round of fixtures.
In the UK, high levels of tendering in the first half of 2019 have yet to mature into significant 2020 awards.
“While we await the outcome of these tendering processes, the few awards made to date are supportive of positive rate development in the UK albeit that utilization is expected to remain seasonal,” the company concluded.
Offshore Energy Today Staff
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