Marine Log - November 2007 - (Page 36) GlobalSantaFe's new ultra-deepwater drillship, to be built by Hyundai Heavy Industries for delivery in 2010 is its first to be ordered with no firm drilling contract in place provided, they will rule in Thule’s favor.” A BREAK WITH PAST PRACTICE Thule’s experience underscores why, all in all, most people planning to build rigs go some place with a track record in such work—which explains why building slots in Singapore are at a premium. The tightness in capacity is persuading some traditionalists to change their thinking. Evidence of this: When GlobalSantaFe ordered its latest ultra-deepwater exploration and development drillship from South Korea’s Hyundai Heavy Industries (HHI) back in September, it broke with its longstanding practice of placing newbuilding orders only when backed by a firm drilling contract. GlobalSantaFe President and CEO Jon Marshall commented: “During our extensive marketing reviews, customers have responded enthusiastically to the innovative and efficient design of this drillship, but tight capacity with the shipyards and major equipment suppliers has resulted in construction options that move faster than our customers’ tender processes. Our decision to move forward without an executed drilling contract is clearly a departure from our much more conservative past approach. However, we would not have taken such a capital risk without a very high degree of confidence in the ongoing strength of the ultra-deepwater market.” The ship is being built under a turnkey construction contract which provides that HHI will contract directly with equipment suppliers and deliver the drillship to GlobalSantaFe in 2010 for a fixed price. Shipyard construction costs are expected to total approximately $740 million. Marshall said the turnkey deal “protects us from rising costs and, considering our customers’ strong interest in this design and the substantial unfilled demand we have identified in the ultra-deepwater markets, we are confident of getting an attractive longterm contract well in advance of delivery.” GOING ULTRA DEEP It is the ultra deepwater sector that is driving much of the current newbuilding frenzy. John Westwood of consultancy Douglas-Westwood spelled out what’s 36 MARINE LOG NOVEMBER 2007 www.marinelog.com http://www.jamesi.com http://www.jamesi.com http://www.marinelog.com
For optimal viewing of this digital publication, please enable JavaScript and then refresh the page. If you would like to try to load the digital publication without using Flash Player detection, please click here.