Maersk Drilling receives two-year extension for jack-up

6/7/2013

Maersk Drilling receives two-year extension for jack-up

COPENHAGEN -- Det norske oljeselskap (Det norske) has, on behalf of the partners in the Ivar Aasen project, has extended the contract for the newbuild ultra-harsh environment jack-up, XL Enhanced 2, by two years. The duration of the firm contract is now five years. The estimated value of the two-year contract extension is approximately $280 million, bringing the total estimated contract value to approximately $700 million. Det norske has options to extend the contract up to a total of seven years.

The rig is currently under construction at the Keppel FELS shipyard in Singapore. Commencement of drilling operation is scheduled for late 2014, following delivery of the rig from the shipyard and mobilization to the North Sea. The rig will be used for drilling on the Ivar Aasen development in the Norwegian North Sea.

In December 2011, Det norske awarded Maersk Drilling a three year contract for the XL Enhanced 2 jack-up, with options for Det norske to extend the contract up to a total of seven years. At that time, the contract was subject to submission and subsequent approval by the Norwegian government of the development plans for Ivar Aasen. On May 21, 2013, the Storting approved the development of Ivar Aasen. The Ivar Aasen field contains approximately 150 million boe.

The XL Enhanced 2 rig is the second of three XL Enhanced jack-ups ordered by Maersk Drilling in 2011 and 2012. The three rigs are scheduled for delivery from the yard in 2014 and 2015, and have all secured long-term contracts. The XL Enhanced design is an enhanced version of existing ultra-harsh environment jack-ups Maersk Innovator and Maersk Inspirer.

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