With the vast number of rig retirements expected to take place over the coming years, Japanese shipyard Tsuneishi is planning to construct a ship recycling yard on the island of Negros, close to its existing shipbuilding yard in Ceibu in the Philippines. The yard is expected to be the first facility in Asia that will comply with the Hong Kong International Convention for the Safe and Environmentally Sound Recycling of Ships 2009.
KeppelFELS chances of getting Grupo R to accept delivery of the three jackups they have under construction by the end of 2017 as planned do not look too rosy. All three rigs, Cantarell III, Cantarell IV and Cantarell V, were to be originally delivered in 2016. Grupo R has revealed that they cannot obtain financing until they have an acceptable signed contract for each unit. Grupo R are already paying KFELS an additional 4% of the balance due on each rig which is being paid quarterly and it is likely they will extend this deal beyond end 2017.
The former Frigstad Kristiansand, now Bluewhale II, nears delivery and is currently on sea trials. The 7th generation Frigstad D90 design 12,000ft wd rated semi is now owned by CIMC Bluewhale Rig Ltd and is set for delivery at the end of this month. No charter has yet been announced for the rig. Another Chinese owned semi-sub, COSL’s Hai Yang Shi You 982, under construction at Dalian Shipyard, is also nearing delivery, scheduled for early 2018. The harsh environment Agility GG5000 design rig is currently having its thrusters installed which will be followed by sea trials. The 5,000ft wd rated [...]
Another arrival in Singapore, Aban jackup Deep Driller 5, has entered Sembcorp Marine Tuas Boulevard shipyard where it will undergo contract preparations ahead of its 5-year plus 3–year options charter with Shell Brunei which is expected to commence in November this year. After completing a charter with Vietsovpetro then being stacked in Indonesia since April 2015 the rig completed a short term contract with Cairn in India.
KS Drilling’s F&G JU2000E design jackup KS Drilling JU3 has completed its jacking tests at the Shang-hai Zhenhua Heavy Industries (ZPMC) yard in Nantong in China. The rig was ordered August 2013 and is currently set for delivery at the end of this year, though whether that takes place is moot given that KSD have recently pushed back another jackup delivery until end 2019.
One rig that has been completed, delivered and accepted by the owner, a rare event these days, is Sinopec’s Jing Lue, a 300ft rated Shengli Drilling Technology design jack-up built at CIMC Raffles shipyard. The rig has been handed over to Sinopec subsidiary Shengli Petroleum Engineering and is ex-pected to go to work for Sinopec offshore China shortly.
In their recent quarterly financial report Sembcorp Marine confirmed that Perisai jackups Perisai Pacific 102 and Perisai Pacific 103 plus Oro Negro jackups Vastus, Supremus and Animus have all been technically completed and that a number of potential clients have emerged to acquire the units whose owners have yet to commit to accepting delivery. Jurong shipyard also has another jackup still under construction, Hakuryu 14, whose delivery has been put back from 2016 to January 2018. The report did not mention Iron V, a jackup ordered by Marco Polo and currently the subject of arbitration nor of the two speculative [...]
Shanghaiguan Shipbuilding in China has cancelled a fourth jackup, the TS Jade (400'-IC) it was building for Falcon Energy subsidiary FTS Derricks after the Falcon said it would not be able to provide funding. In June, FTS cancelled construction contracts for sister units TS Coral, TS Emerald and TS Opal. Falcon had already paid the yard $43 million, representing the 5% down payment required for all four rigs. The first three rigs are said to be jacked up at the yard, while the hull for the TS Jade was launched earlier in 2017. All four of the jackups were expected [...]
Back in June Singapore’s Falcon Energy cancelled three of the four construction contracts that its subsidiary FTS Derricks had with Shanghai-guan shipyard. The fourth rig, TS Jade, also a GustoMSC CJ-50 design unit, remained under discussion. Now the shipyard has decided it will cancel the fourth rig after discussions with Falcon revealed they would not be able to provide funding for the rig. The four rigs, including TS Coral, TS Emerald, and TS Opal, were all ordered in 2013. The rigs are insured by China Export & Credit Insurance Corp so the shipyard will have 95% of its losses covered [...]
KeppelFELS have reached an agreement with SapuraKencana Drilling to further defer the deliveries of two semi-tender assist rigs currently under construction, SKD Kinabalu and SKD Raiqa. Originally set for deliv-ery in 2017, the dates were pushed back into 2019 and have now been pushed back further to 2020. The yard has been compensated for the delays. SKD Kinabalu, originally KM3, is a Frigstad T70 design rig originally ordered from Kencana shipyard in Malaysia back in 2011. In 2014 it was announced that due to serious construction delays the unfinished rig would be moved to another shipyard to complete construction and [...]
Transocean’s confidence in the recovery of the UDW market would seem to be behind their request to Jurong shipyard in Singapore to resume construction of the two Jurong Espadon III design drillships they ordered in February 2014, Transocean Espadon DS1 and Transocean Espadon DS2. Back in April 2016 Transocean had signed an agreement with the yard to defer deliveries of the two rigs for 2 years. The delivery dates have now been fixed for Q1 2020 and Q3 2020. Transocean have also embarked on upgrades to some of their UDW fleet, fitting second BOP stacks and upgrading to be MPD [...]
Seadrill has been granted until September 12th to finalize its restructuring plan. However the company has warned that the final plan is likely to involve seeking Chapter 11 protection which will require substantial impairment or conversion of bonds as well as impairments and losses for other stakeholders including shipyards. The company has $14bn of debt and liabilities. Apart from investors the shipyards that are likely to take a big hit are DSME and Samsung in South Korea who have four UDW drillships under construction for Seadrill, China’s Dalian Shipyard (DSIC) with eight jackups under construction, Jurong shipyard in Singapore and [...]
At Samsung the recent fatal crane accident at Geoje yard has led to Total stating that two of its offshore development projects have been delayed. All work at the yard has been suspended while the investigation into the causes of the accident which killed 6 men is underway. This has delayed the shipping of modules to Norway for the Martin Linge project which in turn has delayed the installation of the modules from summer 2017 to summer 2018 as this can only be performed in the summer months. There has also been a delay, albeit less significant, to Total’s Nigerian [...]
Just when the future seemed a bit brighter for Hyundai, the worlds largest shipbuilder, the yard has become embroiled with their notoriously militant union as the latter fights to preserve the pay packets of the yards employees. HHI’s rationalization program has seen then close yards, moth-ball some drydocks and release thousands of workers and has been warning of further pay cuts for remaining workers. The union claims that the yard has received orders to build 62 new vessels totaling $3.6bn this year and have dismissed the yards gloomy projections for the remainder of 2017. HHI workers went on strike in [...]
The new South Korean Finance Minister has stated that he will seek to reorganize the domestic shipbuilding industry through mergers and acquisitions and will push to have just two dominant shipyards—the “Big Two” system. This suggests that struggling DSME could be taken over by either Hyundai or Samsung by the end of 2018. All three are currently being restructured with DSME in the process of implementing its self rescue plan following a second rescue package was approved in April requiring further cost cuts and job losses.
Shipbreaking work has been suspended at Janata Steel yard in Chittagong in Bangladesh when radioactive material was reportedly found inside pipes in the 33 year old FPSO North Sea Producer formerly owned by Maersk. The High Court is now trying to ascertain how the vessel arrived in Bangladesh with a clean certificate. Maersk has denied all knowledge saying that the intermediary who they sold it to was the one who sold it on for scrap.
Following the recent news that the delivery date for Stena’s Moss CS60 design mid water HE semi Stena MidMax had been delayed until mid 2018, Stena has now decided to exercise its rights to cancel the contract after the shipyard, Samsung in South Korea, failed to meet the original delivery date of Q1 2016 thus allowing Stena to cancel for convenience. Stena is now claiming a reimbursement of $215m representing monies already paid to Samsung, plus interest. Stena also announced it will pursue claims for compensations for costs incurred in relation to the project.
Over in Singapore Perisai has put off having to accept delivery of its two BMC Pacific 400 Class, under construction at PPL shipyard, until 31 August 2017. The Perisai Pacific 102 was completed in June 2015 and delivery deferred to March 2016 then to October 2016 and has been on standby at the yard. Meanwhile Perisai Pacific 103 has also been on standby since construction was completed in July 2016 with delivery initially pushed back to October 2016. The two parties have agreed to seek and evaluate any options that may arise between now and end August, meaning they are [...]
Merger talks between the two big Singapore shipyards, KeppelFELS and Sembcorp Marine, mooted for some time, are rumoured to now be underway. Should this happen the com-bined shipyards will have a dominant position on jackups designs with LeTourneau, KFELS own designs and BMC all under the same stable. This would leave China as the main competition with agreements in place in many shipyards, to build Friede And Goldman and GustoMSC design units.
CIMC shipyard in China have announced that the second Frigstad D90 UDW harsh environment semi Bluewhale 2 is scheduled for completion by the end of August . The original delivery date at time of ordering by Frigstad was Q2 2016. CIMC state that they are in discussions regarding specific use of the rig but have yet to have any charter agreed.