May 26, 2011

KS Energy to build US$388 mio rigs

Singapore-listed company KS Energy Ltd, that is controlled by the 40th Indonesian richest businessman Kris Wiluan, has contracted COSCO Nantong Shipyard Co Limited (COSCO Shipyard) to construct two new jackup rigs.
The total project cost is estimated at US$388 million, which includes project management, drilling and handling tools, spares and capitalized interest.
The construction will build two drilling rigs based on the LeTourneau Technologies, Inc (LeTourneau) WORKHORSE ® Class design with expected delivery date of 27 months and 32
months respectively, from the contract effective dates.  
When completed, both rigs will be capable of operating in water depth of up to 400 feets and a rated drilling depth of 35,000 feets.
Each rig can also accommodate 150 personnel on board. “To be a global player in the drilling business, we have to have a large fleet to cater to different market needs. The addition of these two rigs will increase our fleet to 12 rigs, which includes 4 jackup rigs,” said Kris Wiluan, Chairman and CEO of KS Energy, in a statement today.
Presently KS Energy has and manages 6 land rigs, a lift boat, 2 jack-up rigs and an accommodation rig. Two of its
jack-up rigs – the KS MedStar and the KS Endeavor are drilling in Egypt and West Africa. 
This latest move is part of the Group’ strategy aimed at growing and expanding its drilling operations.
Following the consolidation of its distribution business last year, the Group is now moving towards consolidating its drilling business. 
As of 2010, the group’s drilling businesses, including the operations of Atlantic Oilfield Services have been consolidated under the umbrella of its newly incorporated entity dubbed KS Drilling Pte Ltd (KSDR). KSDR has operations spanning Africa, the Middle East, the North Sea, China and Indonesia.

Disclosure: No position at the stock mentioned above.  

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