Fred Olsen Energy, an exploration and production services provider to the offshore oil and gas industry, has signed a contract with South Korea-based heavy industrial company and shipbuilder Hyundai Heavy Industries (HHI) for the building of a harsh environment ultra deepwater semi-submersible drilling rig with scheduled delivery in March 2015.
As turnkey contractor, HHI will undertake engineering, procurement and commissioning works. The total project cost is estimated at $700 million. When completed, the semi-submersible rig will be the biggest ever built and will be able to drill to depths of 12,200 m.
Meanwhile, another subsidiary of Fred Olsen Energy has been granted an option from HHI for the purchase of a similar second drilling rig exercisable within October 2012.