Santa Fe awards letter of intent for two spec jack ups

Santa Fe International Corp. placed an order with PPL Shipyard PTE Ltd. of Singapore for two jack up rigs. In December, Santa Fe said it intended to build two deepwater semisubmersibles and up to four jack ups. The two rigs will cost $125 million each and take 2 years to complete. The agreement includes options for more such units, the first two at a similar price.

Feb 1st, 2001


Santa Fe International Corp. has placed an order with PPL Shipyard PTE Ltd. of Singapore for two jack up rigs.

In December, Santa Fe said it intended to build two deepwater semisubmersibles and up to four jack up rigs.

Sted Garber, Santa Fe president and CEO, said late last year, "We believe we are in the early stages of an upturn which will support demand for additional premium offshore rigs in the world fleet and that the timing and scope of this program are very prudent for Santa Fe. We have proved in the past and believe firmly that the most advantageous costs of new construction can be obtained early in the cycle. Based on discussions with our customers regarding the capabilities of our new rigs, we expect that these rigs will be under contract prior to delivery."

The rigs PPL will build will cost $125 million each and take 2 years to complete. The agreement includes options for more such units, the first two at a similar price. Construction of the second jack up will begin a year into construction of the first unit.

The jack ups will be capable of drilling in 400 ft of water in moderate environments and in 300-350 ft in harsh environments, and will be marketed worldwide.

They will have 75-ft extended reach cantilevers, three 7,500-psi, 2,200-hp mud pumps, and a large mud storage and deck load capacity.

Santa Fe is negotiating with several shipyards to build the semisubmersibles and expects to award a contract later this quarter.

More in Drilling & Production