SBI Offshore gets termination of jack-up rig deal

  • Business & Finance

Singapore’s SBI Offshore announced on Thursday that a consortium of six Middle East-Chinese parties have terminated a $24 million worth jack-up drilling rig design and engineering contract it had with SBI.

SBI Offshore said that the consortium filed a termination request in view of the downturn in the offshore and marine industry caused by low oil prices.

The contract, under which SBI Offshore’s subsidiary SBI O&M was to provide design, engineering and supervision services for a jack-up drilling rig capable of operating in water depths of up to 110 meters, was signed in August 2014.

Under that contract, work was expected to start during the second half of 2014. However, the company did not provide any details regarding its progress in designing and engineering the rig.

Back in 2014, SBI was in talks with the same consortium to build up to five jack-up rigs, but the talks never materialized.

Offshore Energy Today Staff

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