Viking O&M Secures a $31M Land Rig Contract from a Chinese Firm

Singapore's Viking Offshore & Marine Limited (Viking or the Group) announced Monday that it has secured a 48-month charter for a second land drilling rig system for approximately $31 million, as it continues to build up its portfolio of mainstream offshore, marine and drilling assets.

Viking’s subsidiary Viking LR2 Pte Ltd. will charter the 1,500-brakehorse power (bhp) train-type land rig and related drilling equipment system to a Chinese land rig specialist. It will be immediately deployed on a North African oilfield concession jointly owned by a South Asian energy operator and the local energy authority.

Viking had acquired from and leased back its first land rig in September 2014 to the same charterer which used it to uncover natural gas. After positive assessment of hydrocarbon potential in the locality, the second rig was chartered to accelerate drilling activities.

Viking expects to recognize charter income from its second rig in the second half of the financial year ending Dec. 31, 2015 (FY2015).

Daniel Lin, executive director of Viking, said, “We are excited that our charterer is adding a second rig after the first rig. The second charter enhances our portfolio of earnings-accretive assets in a market environment of low oil prices. We intend to capitalize on our track record to build up our charter fleet to enhance shareholder value.”


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