AP Moeller Maersk A/S's Maersk Drilling Orders New Ultra Harsh Jack-Up Backed by BP Contract
Maersk Drilling, a unit within AP Moeller Maersk A/S, announced that it has ordered a new ultra harsh environment jack-up rig, XL Enhanced 4, to be built at the Daewoo Shipbuilding and Marine Engineering (DSME) shipyard in South Korea. The rig is scheduled for delivery in mid-2016. The total project cost for the rig is USD 650 million including a turnkey contract with the yard, owner furnished equipment, project management and capitalised interest. The contract with DSME includes priced options for delivery of up to two additional units with delivery in 2016/2017. The rig order is backed by a five-year contract with BP Norway for plug and abandonment work on the Valhall field in the Norwegian North Sea. The estimated value of the contract with BP Norway for the firm five-year period is USD 812 million including mobilisation from South Korea to Norway, but excluding cost escalation. BP Norway has options to extend the contract up to a total duration of ten years. The rig will have the capability to be electrically powered from shore via the Valhall complex, which has significant environmental benefits.
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