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Oil & Gas Journal

Uchenna Izundu
International Editor

LONDON, Nov. 2 -- Under a contract worth $700 million, Rowan Cos. Inc. has ordered from Keppel AmFELS Inc. four Super 116E class jack up rigs having the ability to drill to 35,000 ft. Deliveries will begin in the second quarter of 2010 in 4 month intervals.

In addition, Rowan expects to deliver three 240-C rigs, currently under construction, in the third quarters of 2008 and 2009 and will build two additional 240-C class jack ups at its own Vicksburg, Miss., shipyard for delivery in the third quarters of 2010 and 2011 for $400 million. These rigs also have will be able to drill to 35,000 ft.

"The 240-C was designed to be a significant upgrade of the original 116-C class, which has been the 'workhorse' of the global drilling industry since its introduction in the late 1970s," a Rowan spokesperson said.

A company spokesman told OGJ that it would have 30 rigs in total for its clients by 2011. He said Keppel received the contract because Rowan does not have sufficient capacity in its own shipyards to construct the rigs. "We have started conversations about getting contracts for them and we try to line these up 6 months to 1 year before delivery of the rigs," he added.

Danny McNease, chairman and chief executive of Rowan, said: "Each of these new rigs will employ the latest technology to be able to efficiently drill high-pressure, high-temperature, and extended-reach wells in just about every prominent jack up market throughout the world."

Contact Uchenna Izundu at uchennai@pennwell.com.