GSP Extends Drilling Fleet with 2 New Jackups

- GSP Extends Drilling Fleet with 2 New Jackups

Thursday, September 01, 2011
Grup Servicii Petroliere

GSP announced its drilling fleet has been extended up to seven offshore mobile drilling rigs and a modular one. GSP Britannia (ex. Britannia) and GSP Fortuna (ex. G.H. Galloway) entered GSP's fleet in August.

GSP Fortuna is an ABS class three legged independent leg cantilever jackup rig reaching the maximum drilling depth of 25.000 ft and the maximum water depth of 300 ft. GSP Britannia is an ABS class four legged independent leg cantilever jackup rig reaching the maximum drilling dept of 20.000 ft and the maximum water depth of 200 ft.

GSP Britannia will support the company's Decommissioning and Plug and Abandon services in the North Sea. GSP provides cost effective, safe and efficient P&A services for the North Sea. Decommissioning has become a highly demanded service as more and more offshore fields are reaching the end of their lives.

GSP is the single source decommissioning solution providing a full range of engineering and decommissioning services as well as turnkey solutions with focus on safety and environmental preservation. Our company's expertise is sustained in this by the most rigorous HSE standards, which GSP uses in all its projects worldwide.

GSP also operates an extended and modern fleet of construction and heavy lift vessels as well as a large variety of offshore support vessels, SAT diving & ROVs to fully answer the offshore integrated services market demands worldwide.

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Kencana Expands Drilling Fleet

- Kencana Expands Drilling Fleet

Friday, August 26, 2011
Kencana Petroleum Berhad

Kencana announced that its wholly-owned subsidiary, Kencana Marine Drilling Sdn. Bhd., is building 2 units of Tender Assisted Drilling Rigs (TADRs).

The TADRs are currently being constructed by Kencana HL Sdn. Bhd., another wholly-owned subsidiary of Kencana Petroleum at its fabrication yard in Lumut, Perak at a cost of USD 145 million each and are expected to be completed by first quarter of calendar year 2013. The total cost of the 2 units of TADR of approximately USD 290 million will be financed by a combination of internal funds and borrowings.

The building of these rigs is in line with Kencana Petroleum Group's plan to expand its drilling business and service offerings in the upstream oil and gas services value chain. The new rig design is a further refinement to the existing TADR (KM-1). They will include enhanced safety features, heavier crane for efficient operation and lighter derrick equipment set to accommodate utilization on a wider range of drilling platform.

The TADRs when completed and in operation are expected to enhance the earnings of Kencana Petroleum Group.

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Blake International Adds Another Rig to its Fleet

- Blake International Adds Another Rig to its Fleet

Monday, August 22, 2011
Blake International

Blake International has purchased a 3000hp platform rig from Well Services LTD in Trinidad. Blake has renamed the rig the 'Blake Rig 5' and it has a 1 year contract working for PEMEX with a contract value of $25,000,000.00. "This acquisition was essential for us to meet the market's demand for higher horsepower rigs", says Beau Blake, Vice President of Business Development.
>P?The Blake Rig 5 is currently being shipped from Trinidad to Mexico where it will undergo minor refurbishments before beginning its contract with PEMEX.

Blake International owns and operates a fleet of 10 Platform Rigs in the US and Mexico.

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Noble Adds to High-Spec Jackup Fleet with Two Newbuilds

- Noble Adds to High-Spec Jackup Fleet with Two Newbuilds

Monday, August 01, 2011
Noble Corp.

Noble has exercised options with Sembcorp Marine's subsidiary Jurong Shipyard for the construction of two additional high-specification heavy duty, harsh environment JU3000N jackup drilling rigs. This order will bring to six the total number of new jackup rigs the Company will have under construction with the Jurong Shipyard.

David W. Williams, Chairman, President and Chief Executive Officer, Noble Corporation, stated, "We continue to see a growing interest from clients for the advanced features of the JU3000N jackup design. Opportunities for these units are evident in several offshore regions, including the North Sea, Middle East and Asia. This latest rig order reflects our continuing commitment to expand our ownership of industry-leading offshore drilling technology, enabling us to address some of the most demanding well construction challenges around the world."

Total delivered costs for these latest two orders are estimated at approximately $245 million per rig, including project management, spares, and start-up costs, but excluding capitalized interest. Payment terms are consistent with the order of the four previous rigs placed with the Jurong Shipyard since December 2010: 20 percent of the construction price due at contract signing, 20 percent due at steel cutting, and the remainder due at rig delivery. The two latest orders are expected to be delivered from the shipyard during the third and fourth quarters of 2014, following which would be mobilization and acceptance testing by their respective future customers.

The Friede & Goldman JU3000N design is an enhanced evolution of the JU2000E design and represents the latest generation of high-specification jackup drilling rig with greater capacities and capabilities than most existing units. The rigs, which are approximately 231 feet in length and 270 feet in breadth, will have the capability to operate in water depths up to 400 feet and drill to depths of 30,000 feet. The rigs will each have a seventy-five foot cantilever, 2.5 million pounds of hook load capacity, a high-capacity mud circulating system, and a 15,000 psi blowout preventer system. The units are capable of off-line pipe handling and offer accommodations for up to 150 people.

In addition to six newbuild jackup projects, Noble has seven ultra-deepwater drillships under construction, three of which are scheduled to be delivered later this year. The Company continues to evaluate an option it has with Hyundai Heavy Industries Co. Ltd. for the construction of an additional ultra-deepwater drillship that expires on August 31, 2011, with delivery taking place in the second half of 2014.

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Nordic American Tankers Expands Fleet by 27%

- Nordic American Tankers Expands Fleet by 27%

Friday, July 29, 2011
Nordic American Tankers Ltd.

Nordic American Tankers announced that Nordic Breeze, the first of the two vessels under construction at Samsung Heavy Industries Co., Ltd., is expected to be delivered to the Company August 23, 2011. This is more than one month earlier than expected.

The second vessel, Nordic Zenith, is expected to be delivered to the Company in the latter part of October 2011 which also is well in advance of the original schedule.

Both vessels are fully financed, and no equity offering is under planning.

Following the delivery of Nordic Breeze and Nordic Zenith, the Company has increased its trading fleet by 27% during 2011, from 15 vessels in 4Q 2010 to 19 vessels in 4Q 2011 -- all suezmax vessels of about 150,000 dwt each -- thereby bolstering the dividend and earnings capacity correspondingly.

As previously advised the market, the dividend and earnings report (including the dividend amount per share) for the second quarter 2011 will be published Monday August 8, 2011 before the opening of the New York Stock Exchange. Dividend will be paid August 31, 2011 to shareholders of record August 19, 2011.

Herbjørn Hansson, the Company's Chairman & CEO, commented, "Going forward, Nordic American is continuously seeking to expand its dividend and earnings capacity through further acquisitions; when the timing is right. Nordic American has ample financial resources and a strong balance sheet. After the delivery of the two Samsung vessels our net debt will still be very small. I am pleased that we will receive the vessels from Samsung earlier than planned, which is a clear advantage."

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Maersk Extends Rig Fleet with $1.3B Drillship Order

- Maersk Extends Rig Fleet with $1.3B Drillship Order

Tuesday, July 05, 2011
A.P Moller - Maersk Group

Maersk Drilling, a business unit within the A.P. Moller- Maersk group, has declared its option to build two ultra deepwater drillships at Samsung Heavy Industries in South Korea.

The drillships are scheduled for delivery in the second and third quarters of 2014, respectively. The total project cost for the two drillships is approximately USD 1.3 billion, which includes a turnkey contract with the yard, owner furnished equipment, project management, commissioning, start-up costs and capitalized interest. Simultaneously, Maersk Drilling has obtained a new option for the construction of two additional drillships.

"We have an ambition of becoming one of the leading drilling contractors in the ultra deepwater segment and this order is another important step in taking a bigger share of this attractive market segment," said Claus V. Hemmingsen, CEO of Maersk Drilling and member of the Executive Board of the A.P. Moller – Maersk Group. "The order reflects our commitment to grow our rig fleet enabling us to serve our customers in the ultra deepwater segment on a more regular basis," Claus V. Hemmingsen continued.

Year to date, Maersk Drilling has invested USD 3.8 billion in two new jack-up rigs and four drillships.

Maersk Drilling had a revenue of USD 1.6 billion and a profit of USD 399 million after tax in 2010.

Hemmingsen sees a strong market for deepwater drilling rigs as the global demand for oil is increasing while at the same time production from mature fields is declining.

"This means that about six times the current Saudi production must be brought on stream over the next 20-25 years which will drive a solid growth in the demand for drilling services. The main part of this growth will take place in frontier areas such as deepwater," he said.

The two drillships will be of similar design to the two drillships Maersk Drilling ordered from Samsung in April 2011. The 228 meter long drill ships will be able to operate at water depths up to 12,000 ft (3,650 m) and will be capable of drilling wells of more than 40,000 ft (12,200 m).

Similar to the design philosophy on Maersk Drilling's ultra deepwater semi-submersibles the drillship design includes features for high efficiency operation including a dual derrick, which allows for parallel and offline activities. The extensive storage areas and tank capacities provide an advantage when operating in areas with less developed infrastructure and limited presence of suppliers. Together with the higher transit speed the increased capacity will reduce the overall logistics costs for the oil companies. The drillships will have accommodation capacity for 230 people.

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CGGVeritas to Expand Fleet with 6 BOURBON Support Vessels

- CGGVeritas to Expand Fleet with 6 BOURBON Support Vessels

Tuesday, June 28, 2011
CGGVeritas

CGGVeritas has signed a five-year marine charter agreement with BOURBON for six new support vessels to assist its seismic operations. The new vessels will be delivered starting at the end of 2012.

Jean-Georges Malcor, CEO of CGGVeritas, said, "This agreement to charter vessels to support our seismic acquisition operations is another step in our ambitious plan to improve the performance of our fleet and streamline the number of our maritime partners. CGGVeritas will benefit from the expertise of the BOURBON group and its commitment to the highest standards of operating quality and safety worldwide."

"We are delighted to have been chosen by CGGVeritas, which comes as further confirmation of BOURBON's capacity to adapt to meet the needs of its clients," announced Christian Lefèvre, CEO of BOURBON. "At the same time, this agreement emphasizes BOURBON's recognized expertise in the design and management of marine service vessels. The construction of a new segment of vessels for our fleet fits perfectly with the investments we are making under the BOURBON 2015 strategic plan."

The chartered vessels will support CGGVeritas seismic vessels during their survey operations around the world, by providing them with the requisite ancillary services including refueling, crew change, food and equipment delivery, storage, assistance, and support during in-sea maintenance operations. In addition, their unique hybrid propulsion will offer exceptional operational flexibility and low energy consumption.

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Trinidad Drilling Expands Rig Fleet

- Trinidad Drilling Expands Rig Fleet

Thursday, June 09, 2011
Trinidad Drilling Ltd.

Trinidad Drilling announced the acquisition of four drilling rigs that, following enhancements, will be added to its US drilling operations.

"We were able to purchase these rigs at a very attractive price and following their upgrades, they will be a good fit with our fleet of deep, technically advanced equipment," said Lyle Whitmarsh, Trinidad's

President and Chief Executive Officer. "The design and style of these rigs will work well in today's drilling environment, and by applying our drilling automation and electrical expertise to the rigs, we will be able to add efficient, high performing equipment to our fleet at a relatively inexpensive cost."

The total cost of the rigs is expected to be US $44 million, including the initial purchase price and subsequent upgrades. Following their enhancement, the rigs will be highly automated, 1,500 horsepower, AC triple rigs with a depth capacity of 20,000 feet (6,096 meters). The first rig is expected to be operational by the end of the third quarter of 2011 and the remainder will be ready by the end of the year.

The forecast annual EBITDA for these four rigs is expected to more than offset any EBITDA associated with the service rigs recently sold. In addition, the land rigs generate a stronger return on capital and align with the Company's strategy to narrow its focus towards contract drilling.

Following the completion of the 2011 and 2012 rig build program, Trinidad will have a total of 129 drilling rigs with 56 rigs in Canada, 70 rigs in the US and 3 rigs in Mexico.

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CSA Adds ROV System to Fleet

- CSA Adds ROV System to Fleet

Wednesday, May 25, 2011
CSA International Inc.

CSA International has acquired a state-of-the-art inspection class remotely operated vehicle (ROV) system to support its offshore environmental and scientific fleet. The ROV has been configured to carry a high-definition (HD) video system, complete with LED lighting, sighting lasers for image sizing and measurements, and a computer-based HD video recording capability. The ROV is now on its first project in the Gulf of Mexico. Due to its compact size, the ROV system is easily shipped to both domestic and foreign locations in a cost-effective manner and is able to work from a variety of vessels.

"The recent refinement of HD video imaging and recording technology makes this ROV a powerful tool in support of our environmental and scientific surveys," stated Kevin Peterson, CEO of CSA. "We've utilized ROV systems for many years in our segment of the industry, but only recently have we been able to pull together all of the components for HD imaging and archiving in a cost-effective and portable package."

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Trinidad Drilling to Add New Rigs to Fleet

Trinidad Drilling to Add New Rigs to Fleet

Friday, April 15, 2011
Trinidad Drilling Ltd.

Trinidad Drilling has agreed to build two new rigs for delivery into operations in 2011.

"Demand for high quality, modern equipment has continued to increase and contract terms have now moved to a point where it is attractive for us to build new equipment," said Lyle Whitmarsh, Trinidad's President and Chief Executive Officer. "The rigs we are adding to our fleet fit well with our strategy of deep, technically advanced equipment and we expect that they will remain competitive long after their initial contracts expire."

Rig No. 139 will be an 18,000 foot (5,500 meter) triple rig with 1,500 horsepower and equipped with Trinidad's industry-leading technology and automation. The rig is expected to cost approximately $18 million and be operational in the Eagle Ford Shale in Texas in the second half of the year. The rig is backed by a three-year, take-or-pay contract that guarantees 100% utilization throughout the duration of the contract.

Rig No. 57 will be an 18,000 foot (5,500 meter) triple rig with 1,500 horsepower and is being built to work in Steam Assisted Gravity Drainage (SAGD) applications in north-eastern Alberta. In addition to Trinidad's usual automation and technical advancements, this rig will include a system that provides improved fluid handling ability while drilling in a pad environment, and a new pipe handling system that removes the need for a crew member to be positioned in the derrick, increasing both the performance and the safety of the rig's operations. Trinidad expects that it will cost approximately $20 million to build the rig and that it will be operational towards the end of 2011. The rig is under a four-year, take-or-pay contract that guarantees a minimum of 1,200 days over a four year period which equates to an 82% average utilization over the term of the contract.

In addition to these two newly-announced rigs, Trinidad is currently building a natural gas powered rig for operations in the Horn River in north-eastern British Columbia. The Company expects that the construction of the three new rigs, the completion of the 2010 rig construction program and capital enhancements planned for a small number of existing rigs will total approximately $80 million of capital expenditures in 2011.

Following the completion of the rigs being constructed in 2011, Trinidad will have 122 drilling rigs with 62 rigs in the US, 57 rigs in Canada and 3 rigs in Mexico. In addition, Trinidad has 22 service rigs, 20 preset and coring rigs and five barge drilling rigs.

Seadrill Adds Ultra-Deepwater Dual Derrick Drillship to Fleet

Seadrill Adds Ultra-Deepwater Dual Derrick Drillship to Fleet

Monday, April 11, 2011
Seadrill Ltd.

Seadrill has exercised an option to build a new ultra-deepwater dual derrick drillship at the Samsung yard in South Korea. Total project price is estimated at US $600 million (includes project management, drilling and handling tools, spares, capitalized interest and operations preparations). The delivery is scheduled for the third quarter 2013.

The new unit is similar to the two drillships Seadrill ordered from Samsung in November 2010 with enhanced water depth capacity, technical capabilities as well as increased accommodation capacity compared to previous generation drillships.

The dynamic positioning drillship, will be capable of operations in water depths up to 12,000 feet, and will have a hook load capability of 1,250 tons. This rig is also outfitted with seven ram configuration of the BOP (Blow Out Preventer) stack, especially targeting operations in challenging areas such as the Gulf of Mexico, Brazil and West Africa. Furthermore, the drillship will be equipped with a 165 ton capacity heave compensated crane enhancing the unit's operational flexibility and facilitating lifts on the seabed in water depths up to 3,000 meters.

Seadrill has simultaneously secured an extension of the maturity date for a further option agreement to build its seventh drillship to be delivered from Samsung since 2008. Seadrill has currently no specific plan to exercise this option, but might consider it if the strong underlying trend currently seen in the deep water market continues.

Alf C Thorkildsen, Chief Executive Officer of Seadrill Management AS, said, "The decision to add another ultra-deepwater newbuild to our modern fleet is based on the recent improvement in market outlook for ultra-deepwater units, with significantly more tender activities. The new drillship has an attractive delivery window, a favorable construction price and payment schedule and an equipment specification list that will meet our customers' future needs. We have had excellent experience with the Samsung yard and this design and are confident that the unit will be delivered on time and budget once again."

"The strengthening of Seadrill's equity basis through the recently announced bond conversion creates financial flexibility for growing the company further without raising additional equity. The current long-term dayrates give a healthy return on the investment, with further upside if the market strengthens as a result of the strong trend in the oil price.

The project will based on current dayrates and anticipated financing increase Seadrill's dividend capacity going forward. The ordering of the new drillship further confirms Seadrill's commitment to remain a growth company, with the target of reaching US $3 billion in EBITDA in the coming years."

CGGVeritas Briefs on Vessel Fleet

CGGVeritas Briefs on Vessel Fleet

Friday, April 08, 2011

CGG Veritas

CGGVeritas provided its vessel utilization and its fleet allocation updates for the first quarter of 2011.
Vessel utilization for the first quarter 2011:

• The vessel availability rate1 was 81% including 13% for the on-going upgrades of the Master and the Endeavour as part of our performance plan. This compares to a 84% availability rate in the fourth quarter of 2010 and a 90% rate in the first quarter of 2010.
• The vessel production rate2 was 80% following operational interruptions that resulted from maritime incidents and piracy risks which led to stand-by, additional transit and non-planned shipyards. This compares to a 92% production rate in the fourth quarter of 2010 and a 92% rate in the first quarter of 2010.

Fleet allocation update for the first quarter 2011:

• During the first quarter of 2011, our 3D vessels were allocated 94% to contract and 6% to multi-client programs.

Multi-client sales for the first quarter 2011:

• Following very strong seasonal sales in the fourth quarter of 2010, multi-client sales were low this quarter.

Greka Drilling Adds 25 Rigs to Fleet

Greka Drilling Adds 25 Rigs to Fleet

Tuesday, April 05, 2011

Greka Drilling Ltd.

Greka Drilling announced the order of 25 specialized Coal Bed Methane ("CBM") drilling rigs with an additional 125 on option. This will increase the Greka Drilling fleet from seven to thirty-two rigs.

Greka has entered into a contractual agreement with Drillmec, a wholly owned subsidiary of the Trevi Group for the construction and delivery of the rigs. The first rig will be ready for shipment in July and is expected to be commissioned on site in September, followed by an additional four rigs every month from November until the initial order of twenty-five is complete. Once the deliveries begin, one rig is to be commissioned per week until
completion of the current confirmed order. The purchase price for the initial 25 rigs is US $39.25 million (excluding ancillary equipment). The contract contains an option for an additional 125 rigs and provides the flexibility to order larger capacity rigs at the discretion of Greka Drilling. The option is contracted on the same terms as the initial order, adjusted for inflation.

All of the new drilling rigs will be dedicated to production drilling at Shizhuang South (GSS) in Shanxi Province, China, through a recently awarded contract from Green Dragon Gas to drill in excess of 100 wells (vertical and horizontal) in the initial phase.

Greka Drilling will enhance the capability of its existing Schramm rigs currently configured to drill vertical wells to SIS which will take the current number of rigs drilling SIS wells by year-end to 16, accounting for some of the new deliveries. Conversion of the existing Schramm rigs is expected to be completed by July. The Company will outsource some of its contracted simpler vertical wells to third party contractors so as to complete the targeted SIS wells by year-end.

It is expected that following the delivery of the new Drillmec rigs which will be dedicated to production drilling at GSS, the current Schramm rigs will move to exploration drilling in the other blocks operated by Green Dragon and other potential customers throughout China.

The focus on production drilling will also enable Greka Drilling to increase profitability via improved rig utilization rates. The production drilling process is substantially quicker than exploration drilling, where the Company's drilling fleet is dedicated to drilling in several unique locations collecting geological data and sub-surface knowledge.

The improved efficiencies in production drilling come from lower average drilling and mobilization/demobilization times and economies of scale derived from all of the rigs operating in the same area with a common drilling objective. The production drilling fleet is to be controlled via digital feeds to the Company's central SCADA operation control center in Zhengzhou, where the skilled supervision team controls the execution and performance.

Greka Drilling has a significant first mover advantage in the application of specialist Surface to Inseam (SIS) horizontal drilling methodology in the exploitation of CBM in China. Greka has developed its SIS methodology through continuous SIS drilling since March 2008.
Randeep Grewal, Chairman and Chief Executive of Greka Drilling Ltd, commented, "We are delighted to have concluded this vital decision and contract. Our selection process has been rigorous and the final contract awarded is testament to the strict standards and demands by which we have modeled our exponentially growing business. Greka Drilling worked very closely with Drillmec to design the rigs to a unique specification which met our particular needs rather than acquiring a generic design which will provide the maximum efficiency in capital deployed and operational functionality in the field. We have been pleased with the flexibility demonstrated by Drillmec through the process to date and look forward to a long term mutually rewarding relationship with the Trevi Group.

Importantly the new fleet has characteristics that are totally new to China and which will pioneer the approach to drilling CBM wells. Currently Greka Drilling's existing fleet drills to measured depths of 1500 meters with crews of five. The new Drillmec fleet with the available options can take us to measured depths of 5000 meters with crews of two in a fully automated and centrally controlled fleet. This will allow us to drill for customers focused on unconventional gas including CBM and shale.

The acquisition of these advanced next generation rigs will also increase utilization rates significantly for the Company, enhancing efficiency. It will also enable Greka to continue to play a core role in China's strategy to explore and exploit its large market needed unconventional gas resources in full."

Noble Adds High Specification Jackups to Fleet

Noble Adds High Specification Jackups to Fleet

Monday, March 28, 2011
Noble Corp.

Noble has exercised two of its four options with Sembcorp Marine's subsidiary Jurong Shipyard for the construction of additional high-specification heavy duty, harsh environment JU3000N jackup drilling rigs. This order will bring to four the total number of new jackup rigs the Company will have under construction.

Total delivered costs are estimated at approximately $235 million per rig, including project management, spares, and start-up costs, but excluding capitalized interest. Payment terms are consistent with the order of the two rigs placed in December 2010: 20 percent of the construction price due at contract signing, 20 percent due at steel cutting, and the remainder due at rig delivery. Unit deliveries from the shipyard are expected in the third quarter of 2013 and first quarter of 2014. The Company still has options for up to two additional units which must be exercised by January 1, 2012. As previously disclosed, the option units are priced based on the original unit price, plus a potential escalation factor, with future deliveries scheduled in six-month increments beginning in late 2014.

The Friede & Goldman JU3000N design is an enhanced evolution of the JU2000E design and represents the latest generation of high specification jackup drilling rig with greater capacities and capabilities than most existing units. The rigs, which are approximately 231 feet in length and 270 feet in breadth, will have the capability to operate in water depths up to 400 feet and drill to depths of 30,000 feet. The rigs will each have a seventy-five foot cantilever, 2.5 million pounds of hook load capacity, a high capacity mud circulating system, and a 15,000 psi blow out preventer system. The units are capable of off-line pipe handling and offer accommodations for up to 150 people.

"Noble's fleet evolution is well underway as we focus on adding rigs with superior technology, equipment, and capabilities," said David W. Williams, Chairman, President and Chief Executive Officer, Noble Corporation. "With the addition of two more JU3000N units, Noble will have four out of the eleven jackups in existence or under construction with hoisting capacities of 2.5 million pounds. We expect ultra-premium units such as these to be in high demand and look forward to serving our future customers' growing needs in this key market segment."