Dalian: Today Maritime CEO brings news of a unique series of offshore structures under construction in the Chinese city of Dalian.
Dallas-based offshore oil and gas company Mike Mullen Energy Equipment Resource has formed a joint venture with CBI Capital ordering a total of four multi-use Accommodation and Construction Support Jackup Units worth around $150m each in the past 18 months at the offshore wing of Dalian Shipbuilding Industry Co (DSIC). The rigs can accommodate 354 workers and will deliver in the next couple of years.
Evan Claar, chairman of the joint venture, known as CBI-MMEER, says there is nothing like these rigs in the marketplace. These larger units have previously been handled by multiple units. With over 11,400 sq ft of deck space and abilities for full construction support, nothing currently available matches the capabilities of these accommodation jackups in 400 ft water depth, Claar maintains.
The rigs are DSIC’s DSAJ-400 design in conjunction with Noble Denton and feature National Oilwell Varco’s BLM jacking and fixation system.
Claar says the rigs will enter the market vastly cheaper than the many floaters that are being used today in shallow waters. Moreover, it is not just the build cost that is cheaper, but the operating costs too, he claims.
Claar calls for Chinese yards to be more precise with their pricing if they are to get more offshore orders.
“The relatively low downpayment is very attractive,” he says, “but a lot of financing uncertainty could be removed which would attract more orders into the shipyards. For example, we are going through our construction, I still don’t know with precision how much money we are going to need, nor do I know what the fee package is going to look like.”
Claar says a fifth unit could be ordered soon, but clearer pricing would help swing the deal.
“Standardising the fees against the assets and giving clear metrics parameters on what type of contracts would really help a lot towards being able to raise a lot of equity capital,” he says.
On working with Chinese yards, Claar says he has been impressed.
“We run into issues from time to time, and senior management has addressed them toughly and openly,” he says, before stressing: “The yard has done a nice job proficiency wise.” He reckons 95% of the work to date has been excellent with the remaining 5% needing some corrections.
The first two rigs will hit the seas next year. [30/06/14]