Maersk Drilling signs 60m dollar contract

OFFSHORE: Maersk Drilling has signed a new contract with Centrica Energi at a value of at least USD 60 million. With this contract the company’s rig capacity in Norway is sold out until the second quarter of 2014. The demand for ultra harsh environment rigs keeps growing while rig supply remains tight.

The contract employing the ultra harsh environment jack-up Maersk Giant covers the drilling of two or three wells with an estimated duration of 170-210 days at a day rate of USD 350,000. The contract is expected to commence in the fourth quarter of 2013.

With the signing of this contract all of Maersk Drilling’s rig capacity in Norway is sold out until the second quarter of 2014. Maersk Drilling is the market leader in the Norwegian jack-up market currently owning and operating six of the nine jack-up rigs present in the area. Martin Fruergaard, Chief Commercial Officer of Maersk Drilling, explains:

“With more than 20 years of operating experience in Norway, which has some of the toughest safety and environmental requirements in the world, Maersk Drilling is well positioned to meet the growing demand of our customers”.

And the growth continues At the current oil price level oil and gas companies are increasing their business activity in the Norwegian market. Significant resources remain, as confirmed by recent large discoveries, and there is a strong national resolve to develop this potential providing a large growth potential for drilling.

Last year Maersk Drilling invested USD 1.2 billion in two new build ultra harsh environment jack-ups targeted for the Norwegian market. Further, Maersk Drilling last year invested more than USD 50 million in the life time extension of the ultra harsh environment jack-up Maersk Guardian and a similar upgrade is being planned for Maersk Giant this summer.

“These significant investments reflect our strong view on the drilling activity in Norway. We see a continued strong growth potential and will continue to evaluate the opportunities for additional growth”, says Martin Fruergaard.

With the two new builds under construction to be delivered in 2014 Maersk Drilling will operate eight units in the Norwegian market.

Source: Maersk Drilling / maritimedanmark.dk

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