Recently, Alliance Offshore Drilling Pte Ltd.(“AOD”), a wholly owned subsidiary of TSC Group Holdings Limited (“TSC”), formally announced the “1+1” sales and purchase agreement with Harmoni Drilling Services Ltd (“HDS”) for the Zentech designed 400ft R-550D jack-up rig. An initial deposit has been received from HDS.The agreement with HDS replaces the sale to Petrolor previously announced on December 6th, 2013.
The Rig is presently in the final stages of completion at the CSSC Huangpu Wenchong Shipbuilding Co Ltd (“HPWS”) shipyard in Guangzhou and will be well-primed for production in Indonesia by the second quarter of this year. The Rig has recently been successfully qualified and approved by the Directorate General of Sea Transportation and the Indonesian Classification Society - Biro Klasifikasi Indonesia. This paves the way for the Rig to be qualified for future operations in Indonesia at a competitive day-rate compared to non-Indonesian rigs.Through working with PT Harmoni Drilling Services, AOD is able to fulfill the mandatory local content factors required by the Indonesian Oil and Gas Authority, which is in line with the Indonesian Government pillar initiative of supporting growth of indigenous companies.
HDS is 90% owned by PT Harmoni Drilling Services(“PT HDS”). The remaining 10% of HDS is held by AOD. PT HDS is an established drilling contractor in Indonesia with a successful track record of over 6 years of operating drilling jack-up rigs and floaters for international clients operating in Indonesia. The successful cooperation resulting in TSC’s first high specification Jack-up rig obtaining approvals by Indonesian government positions TSC to effectively tap a still active Indonesian market. TSC works closely with PT HDS which has fully complementary long term strategies in the Indonesian fields of oil & gas.
The R-550D rig is the advanced high specification 400ft Jack-up rig built under the alliances between TSC, Zentech and HPWS. The high specification Rig will bring about significant operational savings and reliable uptime to drilling contractors and Production Sharing Contract (“PSC”) operators using the Rig’s superior technical fit for purpose features. In addition, the Rig will bring about a high level of technical skill sets transfer from AOD team to local skilled workforce in the long run. This provides the Rig with the most competitive advantage when participating to win upcoming drilling contract tenders in Indonesia.