SBI Offshore Hammering Out Five Rigs Deal

A Middle-East Chinese Consortium has expressed interest in ordering up to five offshore rig units from Singapore-listed SBI Offshore Limited. The rigs would meet the American Bureau of Shipping Classification requirements for operating in water depths of up to 110 meters.

SBI has already started negotiations with the consortium for the management and construction of the rigs, which are expected to be deployed in the Middle East and various parts of Asia.

The talks build on the previously signed USD 24 million contract with the same consortium of Middle East-Chinese parties to provide design and engineering services for one offshore jack-up drilling rig.

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.