Cosco Wins Drilling Rig Contract from Talland Navigation

Cosco Corporation (Singapore) said Monday that its unit, Cosco (Dalian) Shipyard, has won a $170 million jackup drilling rig contract from Talland Navigation Limited Corporation, a subsidiary of Foresight Limited (London).

Commenting on the announced transaction, Maybank Kim Eng's Analyst Yeak Chee Keong told Rigzone that the rig was sold "at a relatively low price."

"Cosco Corp. is moving into the offshore segment because its core business, the shipbuilding segment, is not doing well. The company will face learning curve issues. In the near-term, it will have to price its rigs at a much lower price as compared to its competitors in order to secure contract wins," Yeak said.

The rig, scheduled to be delivered in 1Q 2015, is based on the LeTourneau Super 116E design, Cosco Corp. added. It will have a drilling depth of up to 30,000 feet, and be capable of operating in 350 feet water, with accommodation for up to 120 persons onboard.

Keppel Offshore & Marine (Keppel O&M), one of Cosco Corp's main competitors, had earlier on April 2, 2012, won a contract to build a similar-designed jackup drilling rig for Mexico's Perforadora Central SA de CV. Keppel O&M charged $205 million for the rig. 

Cosco (Dalian) is a subsidiary of Cosco Corp's 51-percent owned subsidiary, Cosco Shipyard Group Co Ltd.

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