Norwegian oilfield service firm
) announced that it has exercised an option with China-based
Dalian Shipbuilding Industry Offshore Co. Ltd. (DSIC Offshore),
for building two high specification jack-up drilling rigs.
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The contract - valued at $230 million - comprises of project
management, drilling and handling tools, spares, capitalized
interest and operations preparations. Deliveries of the two units
are expected by the third and fourth quarters of 2015.
Seadrill added that the two units will be of F&G JU2000E
design. The jack-up drilling rigs will be capable of working at
water depths of roughly 400 feet and will drill at water depths
of 30,000 feet.
Incidentally, Seadrill already has four jack-ups under
construction at DSIC Offshore, of which two are expected to be
delivered in 2013 and the remaining two in 2015.
Management noted that with the two new orders, Seadrill's jack-up
rig count will increase to 28. With the demand for this class of
assets likely to increase in the coming years - both in terms of
increased day rates and durations - we see the new DSIC deal as a
positive for Seadrill.
Based in Hamilton, Bermuda, Seadrill renders offshore drilling
services, which include exploration, completion and maintenance
of offshore wells; production and well maintenance; and well
services to customers worldwide. The company is operating 75
units which include jack-up rigs, semi-submersible rigs, drill
ships, and tender rigs.
Seadrill shares currently retain a Zacks Rank #3 (Hold), implying
that it is expected to perform in line with the broader U.S.
equity market over the next one to three months.
In the energy sector, firms that are expected to outperform the
U.S. equity market over the next one to three months are
NGL Energy Partners LP
Range Resources Corporation
Calumet Specialty Products Partners LP
). All the three firms currently carry a Zacks Rank #1 (Strong