Malaysia’s Coastal Contracts seals $224m jack-up rig sale

Malaysia’s Coastal Contracts seals $224m jack-up rig sale

Kuala Lumpur: Coastal Contracts has announced that is has secured a contract for the sale of a jack-up rig at a price of around RM807m ($223.5m).

The company didn’t reveal the buyer, just that it was a reputable oil company, and was due for delivery in the third quarter of 2015.

Ng Chin Heng, executive chairman of Coastal, commented: “I am pleased to announce that Coastal Group has secured a sale order of its first jack-up drilling rig. With the latest sale, our cumulative sales order book has further increased to a high of RM1.92billion, balanced with our long term charter contract for jack-up gas compression service unit in Mexico.

Amid low oil prices, the offshore demand for offshore drilling rigs. The decision to sell our first jack-up drilling rig was in order to reduce the Company’s exposure to a potential downturn in the drilling market.”

The company announced it would build the rig in March 2014, and had been working on the sale since the announcement.

Grant Rowles

Grant spent nine years at Informa Group based in London, Sydney, Hong Kong and Singapore. He gained strong management experience in publishing, conferences and awards schemes in the shipping and legal areas, working on a number of titles including Lloyd's List. In 2009 Grant joined Seatrade responsible for the commercial development of Seatrade’s Asia products. In 2012, with Sam Chambers, he co-founded Asia Shipping Media.

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