Smedvig has contracted Singapore's Keppel Shipyard for a new semi-submersible self-erecting tender rig (semi-tender). The total capital expenditure for the new semi-tender is estimated at approximately USD 82.5 million, of which Smedvig’s share is approximately USD 23 million.
The cooperation agreement with Keppel Shipyard is based on the principle that Keppel shall build and own the semi-submersible hull, calculated at approximately USD 59.5 million and Smedvig shall own the derrick equipment set, calculated at approximately USD 23 million. Smedvig shall for a period of ten years be responsible for marketing, management and operation of rig. The agreement includes an option for Smedvig to purchase the semi-submersible hull at any time during the ten-year period at a pre-agreed price.
The new semi-tender will be based on a similar design and specification as Smedvig’s newbuilt West Menang, but upgraded for increased deckload and for mooring in deep water and is scheduled for delivery in the fourth quarter 2001. The new rig is targeted to work on dry completion platforms such as TLPs and Spars in up to 6000 feet of water depth.