China: state-owned Zhenhua Heavy scores first rig orders.
Zhenhua bags $2.2bn rig bounty
Shanghai Zhenhua Heavy Industry has won $2.2 billion worth of orders from Spanish explorer Arborec Desarrollos Sociedad Anonima for the construction of drilling rigs and floating cranes.
The order covers the construction of 10 jack-up drilling units, seven land rigs and two floating cranes.
Deliveries are scheduled from mid-2011.
Sources said the Spanish company is acting on behalf of the National Iranian Oil Company (NIOC).
As earlier reported in Upstream, Zhenhua was previously in talks with China Petroleum Technology & Development Corporation and other NIOC’s Chinese agents on the construction of 10 jack-up rigs.
The Chinese agents will help line up financing for the newbuild rigs.
Zhenhua's container cranes have a global market share of nearly 78%. Over 72% of the company's total revenue was generated from this sector during 2008, according to a Xinhua news agency report.
The Shanghai-based shipbuilder recently changed its name from Shanghai Zhenhua Port Machinery to Shanghai Zhenhua Heavy Industry in May, reflecting its entry into the offshore engineering equipment sector.
China Development Bank has extended the Chinese outfit a five-year credit line of 10 billion yuan ($1.46 billion) last month to fund its entry into the new market segment.