CSSC-affiliated Waigaoqiao Shipbuiding is setting up a joint venture with Shandong Offshore to jointly manage three offshore rigs under construction at the yard.
Shandong Offshore’s subsidiary Blue Ocean Drilling ordered the three jackup rigs H1378, H1379, H1418 at Waigaoqiao Shipbuilding in 2014.
According to the plan, Northern Offshore, an affiliate company of Shandong Offshore, will make a partial payment of $64.27m to Waigaoqiao under the rig contracts, while Waigaoqiao will use the amount to establish a joint venture Shandong Huihai Offshore Drilling with Shandong Offshore. Waigaoqiao will hold 30.3% equity interest in the jv.
Shandong Offshore will pay the remaining $503.6m on the rig contracts within eight years after the delivery of the rigs.
Shandong Offshore acquired John Fredriksen’s Northern Offshore in 2015, and now it is integrating the assets of Blue Ocean Drilling into Northern Offshore.
One of the three rigs was named Energy Emerger in June while the construction of the other two rigs are also nearing completion.
CSSC said the establishment of the joint venture with the owner will effectively ease the delivery pressure and minimise the yard’s risk.