Seadrill orders two jack up drilling rigs for 2015 delivery

Seadrill Ltd. ordered two high-specification jack up drilling rigs from Dalian Shipbuilding Industry Offshore Inc. in China, and the rigs, worth $230 million total, are scheduled for delivery during the first half of 2015.

The two units will be capable of drilling to 30,000 ft in 400 ft of water. Seadrill also received fixed-price option agreements to construct an additional two units at Dalian, with delivery in the second half of 2015.

John Fredriksen, Seadrill chairman and president, said the newbuilds position Seadrill for additional growth in what he calls “a strengthening jack up market.”

He said, “Customers continue to show preference for newer units from drilling contractors with proven track records of safe and efficient operations. Currently 312 jack ups or 65% of the total fleet of 483 jack ups are older than 25 years. These two new firm orders increases our fleet of modern jack ups to 25 rigs with an average age of 3 years.”