Singapore's KeppelFELS: rigbuilder in race for Saudi jack-up order.
Aramco seeks yard for new jack-up
Saudi Aramco has floated a tender for the construction of a newbuild jack-up rig.
The contract is expected to be awarded by the end of this year, with delivery scheduled for 2011 to 2012.
Sources said KeppelFELS and Jurong Shipyard are among the contenders for the newbuild contract.
The rig will be built according to KFELS B Class design, the PPL Pacific Class 375 or one of the LeTourneau designs, but will be equipped with larger deck space than the standard jack-up, according to a source close to the development.
The final value of the newbuild contract however, is likely to be lower than that for a similar unit a year ago given the falling material costs and reduced global rig demand.
Steel prices have decreased by 20% to 30%, while drilling packages are also experiencing price reductions, said an analyst who prefers to remain anonymous.
Rigbuilders may be able to translate the cost savings into price reductions, but it remains to be seen whether this could come at an expense to their final margins, the analyst said.
The tender is widely viewed by most industry observers as a much needed break for rig builders amid the current downturn in the offshore marine sector.