ZPMC Bags $199M Contract to Supply Newbuild Jackup to KS Energy

KS Rig Invest Five Ltd, a unit of Singapore's KS Energy Limited's subsidiary KS Drilling Pte Ltd., inked a contract Monday with China-based Shanghai Zhenhua Heavy Industry Co., Ltd. (ZPMC) for the construction and delivery of a newbuild Friede & Goldman JU-2000E design jackup.

Under the contract, ZPMC is scheduled to deliver the first jackup 27 months from June 23. KS Drilling also holds an option to order a second similarly-designed jackup, which may be exercised any time within 6 months from the signing of the current contract.

The total consideration for each jackup is approximately $199.2 million, exclusive of additional costs to be paid for project management, drilling and handling tools, spares and capitalized interest. KS Drilling will fund the purchase of these jackups through internal resources and borrowings.

"The acquisition of the New Rigs will allow the Company to expand its drilling services business, one of the Group’s core businesses," KS Energy said in a press release Monday.

Last Thursday, KS Energy revealed that it sold KS Orient Star 1 (400' ILC), now under construction in a Chinese yard, for $84.88 million.


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