Yard constraints could delay rig deliveries to Statoil

Offshore staff

LIMASSOL, Cyprus – Songa Offshore says construction of four new drilling semisubmersibles for Statoil is progressing well.

The two CAT D rigs nearest to completion as of Aug. 1 were Songa Equinox (70.1%) and Songa Endurance (65.8%).

However, Songa anticipates a delay of four to six months on delivery of Songa Equinox due to capacity problems at DSME in South Korea and its sub-suppliers.

As for Songa Endurance, Songa Encourage, and Songa Enabler, the company anticipates delays of up to three months.

Probable delivery times now range from end 2014 for Songa Equinox to 2Q 2015 for Songa Enabler.

The Cat D rigs are being built to Statoil’s specifications, with Statoil agreeing to technically accept as much as possible of the rigs before Songa takes delivery of the units from DSME.

Average project cost per rig is estimated at $660 million plus capitalized interest, including around $100 million in project management and mobilization costs.

Songa says demand for semis in the North Sea continues to outstrip all other international regions.

In Southeast Asia, the company expects rig bidding activity to pick up in the second half of this year, in time for the Songa Mercur and Venus to secure new contracts in direct continuation of their current programs.

8/26/2013

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