Cyprus-based Frigstad Deepwater Ltd. has ordered two new- build semisubmersible drilling rigs to be built at the CIMC Raffles yard in Yantai, China at an estimated cost of US $1.3 Bn, with options for another four units.

The company said it had entered into turnkey construction contracts for the delivery of the two new ultra-deepwater 7th generation semisubs of the Frigstad D90 design, developed by its sister company Frigstad Engineering.

The rigs will be capable of operating in water depths of up to 3,658 m (12,000 ft) and drilling to a total depth of 15,240 m (50,000 ft). The units will be outfitted with a DP3 dynamic positioning system, full dual activity hydraulic drilling package with 2 x 1,400 standard tonnes hoisting capacity and 2 x seven ram BOPs, said Frigstad.

The first two units are scheduled for delivery by the end of Q4 2015 and Q2 2016 respectively.

Frigstad says the total project cost of $1.3 Bn is exclusive of financing cost. The construction, marketing and operation of the rigs will be managed by Frigstad Offshore.

Simen Skaare Eriksen, CEO of Frigstad Offshore Pte Ltd. and Director of the Frigstad Deepwater Ltd. subsidiaries, said: “With these newbuild orders, we continue building a solid foundation for further growth and developing the company into a leading operator of ultra-deepwater drilling units at the very top end of this highly attractive market segment. These rigs represent yet another significant step forward in terms of equipment specifications, operational efficiency, flexibility and reliability, and we will be well positioned to take advantage of a strengthening ultra-deepwater market.

“After the CIMC Group’s takeover of the Yantai Raffles yard, we have seen considerable improvements to infra- structure and execution skills at the yard, which provides us with confidence in their ability to deliver a successful project.”

The newbuild orders have been placed with financial backing from CIMC Capital Ltd.

The Frigstad Offshore group is based in Cyprus with operational headquarters in Singapore. In 2006 it founded Frigstad Discoverer Invest Ltd. to finance, construct and operate the Frigstad Oslo, the first ultra-deepwater semisubmersible rig of the Frigstad D90™design. That rig company and unit was acquired by Saipem in 2007.

In 2011 Frigstad Offshore completed two ultra-deep new- build construction projects and currently manages the semi- submersible drilling unit Kan Tan IV, owned by Sinopec Star Petroleum Co Ltd.

Offshore