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DSME Wins $530 Mil. Jack-up Rig Order from Denmark

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Friday, September 27th, 2013
SEOUL, KOREA- Daewoo Shipbuilding & Marine Engineering said on September 25 it won a 570-billion-won (US$530-million) order to build a large jack-up rig for Denmark's Maersk Drilling, a unit of the A.P. Moller-Maersk Group. This is the first time for the company to take a jack-up rig order in 30 years since 1983. A jack-up rig is a type of mobile platform used to drill exploratory holes in offshore oil fields. It is mainly used in the North Sea where the depth is shallow but the waves are high.
 
The shipbuilder will complete building the rig at its Okpo Dockyard in Geoje Island and deliver around mid-2016 in a region near Norway. The jack-up rig to be built will be operable in places where the water depth is more than 150 meters, a company official said. Most rigs for such purposes are built to withstand in a depth of 100 meters or lower. The company official also said that the rig will be operable in severe cold weather below 20 degrees below zero Celsius.
 
According to Daewoo Shipbuilding, more oil companies are placing orders of jack-up rigs as their continental shelf drilling equipment is increasingly obsolete, with their demand on technical specs getting more sophisticated, which naturally raises the overall price level. For this reason, jack-up rigs can be a new high value-added market for Korea's shipbuilders, the company official said.

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