Fred Olsen scraps rig option

No second unit: at Hyundai Heavy Industries

BLOOMBERG

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Steve Marshall

 21 November 2012 15:49 GMT

Oslo-listed driller Fred Olsen Energy has decided not to exercise an option for a second newbuild harsh-environment rig at Hyundai Heavy Industries.

It follows a recent award from Chevron of a five-year contract worth more than $1 billion for the first newbuild, the semi-submersible Bollsta Dolphin, to be used on drilling of development wells at the US supermajor’s Rosebank project West of Shetland.

The semisub is being built at the South Korean yard at a total cost of $740 million, including the $40 million installation of a second blowout preventer and an extra riser on the newbuild, due for delivery in the first quarter of 2015.

However, the Norwegian rig player has apparently been…

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