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South Korea: Next-Generation Drillship Design Developed

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With the heightened expectations of stakeholders in the aftermath of the Deepwater Horizon incident, Hyundai Heavy Industries (HHI) has listened to its drilling operator clients and designed a new generation of drillship. The new 80k class, heavy duty, wide beam drillship design, HD12000, can drill up to depths of 12,000 feet.

It has greater versatility, strength and more available deck space than its predecessors and has been developed drawing on previous experience of drillships. The HD12000 has an increased beam, which allows for larger and more variable load capacity (up to 24,000 metric tonnes) and reserve buoyancy for heavy duty – with compartment arrangement improvements – as well as being able to accommodate a cylinder rig concept that could be used for bigger derrick load requirements.

The JDP put the wide beam drillship design through design review, ship motion analysis, fatigue and FE analysis. Throughout, and on a global basis, Lloyd’s Register experts in hull structures, marine, mechanical, electrical and drilling systems worked in co-operation with HHI’s lead engineers to review and give feedback on the design development.

At the closing meeting at HHI’s Ulsan shipyard, Gyung-Jin Ha, Executive Vice President, Hyundai Heavy Industries, commented: “HHI and Lloyd’s Register have strong advantages in their own specialised fields, and it is therefore desirable to share experiences with each other and have cooperation between the two companies. HHI will never stop innovating to meet new market demands.”

Lloyd’s Register Drilling Integrity Services specialists in Moduspec were able to provide 25 years of valuable ‘people, systems and equipment’ insight and perspective regarding the drilling systems arrangements, when considering the operational integrity of the proposed design. At 223 metres long, 40 metres wide and 18.5 metres deep, the HD12000 drillship can probe a depth of 40,000 feet below the rotary table and is designed to accommodate the increasing complexity, pressures and sizes of drilling equipment and their handling needs. In addition, the arrangement of mud pumps and riser hold storage inside the hull envelope provides for a large free deck area for tube storage and other equipment, as well as greater flexibility and versatility of operations.

It has fully dynamic, positioning-compliant, station-keeping capabilities, with sufficient power to allow it to maintain position in emergency situations. Efficient The HD12000’s innovative hull form design is based on HHI’s longstanding and accumulated technology on merchant vessels. It enables a high transit speed of 11.5 knots (reduced form resistance with integrated thruster pod to hull) with a reported 40% less fuel consumption, enhanced sea-keeping performance (reduced roll angle by 20%), reduced interaction and thruster efficiency improvement and enhanced DP capability (reportedly 20% less fuel consumption).

A patented thruster canister design allows for in-site inspection and maintenance of the thruster without the need for docking, with reduced non-productive time.

Alan Williams, Lloyd’s Register’s Korea Marine Operations Manager, said: “Lloyd’s Register has been able to clearly demonstrate to a significant customer for drillship construction how it can support them, drawing upon the pool of expertise from across the organisation for that segment. Korea represents the technological coalface for drillship construction, gaining momentum for innovation, and we will continue to play our part. Lloyd’s Register is positioned to fully support the drilling operators and building yards through integrated marine and drilling system specialist teams, working closely with these clients to develop and offer solutions.”

The latest revision of LR’s rules for Mobile Offshore Units utilises the specialist drilling integrity capabilities of Moduspec and WEST, and will incorporate new classification notations for mobile offshore drilling units. These will be released in February.

Shipbuilding Tribune – South Korea: Next-Generation Drillship Design Developed.

South Korea: Samsung Yard Bags $ 600 Mln UDW Drillship Order

Seadrill has entered into a turnkey contract to build a new ultra-deepwater drillship at the Samsung yard in South Korea. The project value price is estimated to be around US$600 million (including project management, drilling and handling tools, spares, capitalized interest and operations preparations) with tail-heavy payment terms payable upon delivery, which is scheduled within the fourth quarter 2014.

Delivery is scheduled for the fourth quarter 2014. In addition, Seadrill has agreed a fixed price option to build a further drillship at the yard, with delivery in the first quarter 2015. With the current strong demand there is limited availability of rigs in 2014 and Seadrill believes it is likely that the option will be exercised and is currently discussing details of upgrades of that unit.

The drillship will be of the same design as the existing six drillships under construction at Samsung and will have a hook load capability of 1,250 tons and a water depth capacity of up to 12,000 feet targeting operations in areas such as the Gulf of Mexico, Brazil and West and East Africa. Also, these units will be outfitted with seven ram configuration of the blowout preventer (BOP) stack and with storing and handling capacity for a second BOP.

Yard costs are currently at very attractive levels. This together with the delivery time in 2014, the strength of the ultra-deepwater market and Seadrill’s proven track-record of taking delivery on time and on budget makes this into an investment which is likely to deliver an excellent return to our shareholders.

Seadrill’s construction program now totals 19 units, including 7 drillships, 2 harsh environment semi-submersibles, 5 tender rigs and 5 jack ups. In addition the Company has fixed priced options for three ultra-deepwater/harsh environment units.

The initial installments for the new drillship will be funded by liquidity from the recent US$1 billion bond offering.

Chairman of Seadrill Limited John Fredriksen says, “We have a unique environment where both daily rates and contract duration are increasing to new highs, while yard prices remain low due to the overcapacity in the shipyard industry. This presents an excellent investment opportunity under which we can continue to aggressively grow Seadrill. The new ordering has been evaluated up against several M&A and asset proposals but the Board has concluded that organic growth through contracting new buildings at attractive prices is likely to give higher long-term return to shareholders. The deepwater drilling industry is transforming from an exploration to a development industry. Such a transformation will trigger a significant increase in the need for the drilling of production wells in order to connect the fields that have been successfully explored in the recent years.”

Fredriksen continued: “Seadrill is best positioned within the drilling industry to meet this tightness. We have in total nine ultra-deep/ harsh environment units for delivery in 2013 – 2015 plus options for an additional three. Two of these units have already been employed on long-term contracts. We are currently in specific discussions regarding attractive long-term employment opportunities for a majority of the remaining firm units. Clarification around these fixtures should be expected in the months to come. The Board has in recent press releases expressed that they are confident that an attractive financing package can be arranged for the new building program. This situation has further improved in the recent months, driven by a well oversubscribed bank financing, good progress on the export financing side as well as the successful trading of the new US$1 billion five-year unsecured note. With a total order backlog in excess of US$20 billion which is likely to increase further in the months to come the Board is confident that the new ordering can be financed without raising additional equity and will contribute positively to future valuation as well as dividend capacity. Seadrill will continue to monitor opportunities in the new building market including the possibilities to declare the existing three options. The target is to continue to grow Seadrills organization, fleet and earnings potential in an optimal and dynamic way. The Board is increasingly excited about the strength of the market and the way Seadrill is exposed to this operationally and financially.”

Shipbuilding Tribune – South Korea: Samsung Yard Bags $ 600 Mln UDW Drillship Order.

South Korea: Rowan Orders Ultra-Deepwater Drillship from HHI

Rowan Companies plc (“Rowan” or the “Company”) announced that it has exercised its option to build a fourth GustoMSC P10,000 design ultra-deepwater drillship with Hyundai Heavy Industries Co., Ltd. (“HHI”) with delivery scheduled in March 2015.

The cost for this rig, including commissioning, project management and spares, but excluding capitalized interest, is estimated to be approximately $620 million. This cost compares to peer companies’ previously announced 12,000 foot capable rigs equipped with 10,000 feet of riser. Rowan plans to equip its drillships with 2,000 feet of additional riser to enable operations in water depths up to 12,000 feet upon delivery. Each drillship will also be equipped with a second BOP for minimizing non-productive time. The Company will also incur operational training and personnel ramp-up costs in readying the drillships to commence well operations. Expected costs for the additional riser, BOP and training and ramp-up costs will be approximately $75 million. Total cost for the Company’s fourth drillship will be approximately six percent higher than the Company’s first three drillships primarily due to equipment price increases and projected labor cost increases. The agreement with HHI also includes an option for a similar fifth drillship exercisable in the fourth quarter of 2012, for delivery in the third quarter of 2015.

Matt Ralls, President and Chief Executive Officer, commented, “We are very pleased to add a fourth ultra-deepwater drillship to our fleet. The recent three-year contract obtained for our first drillship, the Rowan Renaissance, and strong customer enthusiasm for Rowan’s history of operational excellence, high-specification drillship design and experienced deepwater team, reaffirms our confidence in our expansion into the ultra-deepwater market.”

The Rowan Renaissance struck steel in July 2012 and is expected to be delivered in late 2013. The second and third drillships are expected to be delivered in the second and fourth quarters of 2014, respectively.

Subsea World News – South Korea: Rowan Orders Ultra-Deepwater Drillship from HHI.

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