MIS to Build Jackup for KS Energy

MIS has finalized a Letter of Intent for the supply and construction of one firm and one optional Friede & Goldman Super M2 design offshore jackup drilling rig and received a US$5 million deposit towards the down payment milestone for the firm rig. The order was received from a newly established joint venture company made up between KS Energy Services Ltd. (KSTL.SI on Singapore Exchange) with 50% equity, Amwal Al Khaleej Commercial Investment Co. Ltd. (a Saudi Arabian private equity company) with 40% equity and MIS with 10% equity. It is expected that the formal joint venture agreement between the parties and the final building contract will be finalized in early April. The delivery of the rig will be 30 months from the effective date of the contract or around 3rd quarter 2009.

The contract price for the rig is US$148 million and the rig (s) will be supplied by MIS to the JV company on a turnkey basis. MIS will dedicate one of the 30,000 ft. National Oilwell Varco drilling packages that it had ordered at the end of 2006 to the first rig to ensure the delivery in 2009. MIS will build and deliver the rig from its Sharjah, United Arab Emirates fabrication and shipyard. With this award, MIS' order backlog now exceeds US$ 400 million for the first time in its history.

Jerry Smith, MIS Managing Director stated, "this is an important order for MIS to add to the two rigs already under contract for Mosvold Jackups Ltd.(MOJU:NOTC). It reflects the sentiment that MIS is a credible rig builder based on the progress achieved to date on the Mosvold rigs. In addition, MIS sees this type of joint holding of rigs increasing in the Middle East as more and more local companies establish themselves as equity holders in offshore jack-ups in the biggest oil and gas producing market area in the world. MIS will continue to try to promote this type of venture between established chartering companies and drilling contractors with local companies holding equity."

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