Samsung Heavy Pens Contracts for Two Category J Rigs

Samsung Heavy Industries Co. Ltd. and operator KCA Deutag Drilling Norway AS have been awarded the contracts for construction and operation of two category J rigs. Operation start is expected in 2016-2017.

The operation contract is for an initial period of eight years with the option to extend by 4×3 years. The contract value is of the order of NOK 900 million (approx $155 Mln) for the initial contract.

The category J rig intake is part of Statoil’s long-term rig category strategy to rejuvenate its rig fleet, secure long-term rig capacity and reduce drilling costs to improve NCS recovery rates. The license ownership model has been developed in close cooperation with the licence partner Petoro.

The new category J rigs will be able to operate in harsh environments at water depths from 70 to 140 metres and drill wells with lengths up to 10,000 metres. The rigs are based on proven technology, but optimised to allow for more efficient drilling and completion of subsea wells compared to the existing jack-up fleet.

The rigs will be owned by the Gullfaks and Oseberg licenses, but will be operated by a drilling contractor.

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Press Release, June 4, 2013