Dubai: QGM Group LLC, operators of a rig construction yard in the UAE, has secured a Dh925 million contract to build two oil rigs from Norwegian company Thule Drilling, a senior official said.
Thule has entered into a construction agreement under Thule's option programme at QGM to build "Friede and Goldman Super M2" designed-rigs.
QGM is a British Virgin Island registered company, currently based in Sharjah's Hamriyah Free Zone.
"This is a proven design with more than 30 units built. The rig has a 300-foot water depth capacity and can drill down to 30,000 feet with a 3,000 tonne variable load, has a cantilever reach of 50 feet, and is otherwise fitted with state-of-the-art equipment," a recent report said.
"This design and equipment specification is ideally suited to Middle East requirements, the fastest growing jackup rig market in the world."
The total new-build cost per rig is approximately $126 million including contingency with delivery of one rig in November 2007, and the second rig during the first quarter of 2008.
"This is an early delivery compared with the majority of other jackups under construction. The price compares very favourably with new-builds offered from other yards," it said.
Through the experience with the marketing of Thule Power, Thule Drilling intends to take advantage of the contacts made in the Middle East to work towards securing long-term contracts for the two units to be named Thule Energy and Thule Force at a relatively early phase of the construction process.
QGM is presently reconstructing the jackup Thule Power for Thule Drilling, now due to be completed for delivery during the second half of August 2006 and committed on a 5-year bareboat charter at $80,000 per day through a letter of intent with a major national oil company in the Middle East.
A contract is expected to be signed next week to formalise the deal between the two entities. Construction of the rigs will be carried out in QGM's Hamriyah Free Zone yard.
QGM Group was formed to provide engineering and turnkey construction and project management services to the oil and gas operators and contracting firms.
Thule Drilling has entered into a construction agreement under Thule's option programme at QGM to build Friede and Goldman Super M2 rigs.
This design has a 300-foot water depth capacity and can drill down to 30,000 feet with a 3,000 tonne variable load, has a cantilever reach of 50 feet, and is otherwise fitted with state-of-the-art equipment.