Hercules Offshore wins rig contract with Maersk Oil

Hercules Offshore Inc.

Hercules Offshore Inc. (Nasdaq: HERO) has signed a five year drilling contract with Maersk Oil North Sea UK Ltd. for a newbuild jackup rig to be owned and operated by Hercules Offshore. Total contract value is $420 million, which includes $9 million of mobilization fees. Contract commencement is expected in mid-2016.  

Hercules Offshore has also signed a rig construction contract with Jurong Shipyard Pte. Ltd., in Singapore. The rig is based on the Friede & Goldman JU-2000E design, with enhancements that will provide for greater load-bearing capabilities and operational flexibility. 

The shipyard cost of the rig is estimated at $236 million. Including project management, spares, commissioning and other costs, total delivery cost is estimated at $270 million. Hercules Offshore initially pays 10% of the shipyard cost, or $24 million to JSL, followed by a second 10% payment one year after the initial payment. The final 80% of the shipyard payment is due upon delivery of the rig, estimated in April 2016. 

 

 

Did You Like this Article? Get All the Energy Industry News Delivered to Your Inbox

Subscribe to an email newsletter today at no cost and receive the latest news and information.

 Subscribe Now

Whitepapers

Maximizing Operational Excellence

In a recent survey conducted by PennEnergy Research, 70% of surveyed energy industry professional...

Leveraging the Power of Information in the Energy Industry

Information Governance is about more than compliance. It’s about using your information to drive ...

Reduce Engineering Project Complexity

Engineering document management presents unique and complex challenges. A solution based in Enter...

Revolutionizing Asset Management in the Electric Power Industry

With the arrival of the Industrial Internet of Things, data is growing and becoming more accessib...