Maersk Drilling Buys Rig For North Sea

Published at 08:51AM - 27/05/16

Maersk Drilling announced it has entered into a definitive agreement to acquire a jack-up rig from a subsidiary of Hercules Offshore.

According to the agreement, Maersk Drilling assumes the right to take delivery of the rig and settles the final payment of approximately US$190 million (£129.6 million) with Jurong.

“This agreement represents an opportunity for Maersk Drilling to acquire a newbuild harsh environment jackup backed by a long-term contract”, Maersk Drilling CEO and member of the Executive Board in the Maersk Group Claus V. Hemmingsen, said.

Maersk Drilling Buys Rig For North Sea

The newbuild harsh environment jack-up rig, formerly named Hercules Highlander, is expected to mobilise to the North Sea to start a drilling contract valued at US$420 million (£286.56 million) with a duration of five years.

The contract includes a mobilisation fee of US$9 million (£6.14 million) with Maersk Oil and its partners in the project, BP and JX Nippon Oil & Energy Corp.

The rig is ready for immediately delivery from Jurong Shipyard in Singapore, the company informed.

“We look forward to working with Maersk Oil and its partners on the Culzean gas field”, Hemmingsen added.

Maersk Continues To Invest In Culzean

The jack-up rig is equipped to drill up to 30,000 feet and with high pressure and high temperature capabilities, as well as accommodate up to 150 staff. It will be renamed Maersk Highlander and should become the firm’s 23rd rig.

The operations will take place on the Culzean gas field, located offshore the UK, the largest new field discovered in the UK North Sea.

Discovered in 2008, the Maersk Oil-operated field is expected to produce enough gas to meet 5% of total UK demand at peak production in 2020/21. The field holds estimated resources of approximately 250-300 million barrels of oil equivalent.

Production is expected to start in 2019 and continue for at least 13 years.