Here's proof that tier-1 drillers are still attracted to Singapore over China yards

For jack-up rig construction.

According to CIMB, Ensco announced that it has ordered a new premium jack-up rig for delivery in early-2015. ENSCO 110, based on the Keppel FELS B Class Bigfoot design, will be built under a fixed-price contract with Keppel FELS in Singapore.

The construction cost is expected to be about US$225m, including commissioning, systems integration testing, and project management. Keppel has built similar
KFELS B Class Bigfoot-designed rigs, ENSCO 106, ENSCO 107 and ENSCO 108, in 2005-07.

The rigs are capable of working at water depths up to 400ft and maximum drilling depth of 30,000ft.

Here's more from CIMB:

We rank Ensco among the top three drillers in the world, with about 74 units of rigs in operation and under construction.

This confirms our view that tier-1 drillers (with >40 units of rigs) still prefer Singapore over Chinese yards for the construction of jack-up rigs on the island’s proven track record.

Ensco’s strategy of rig standardisation, which allows the driller to staff, operate and maintain rigs more efficiently, will continue to land new orders in Keppel’s yards.

The current contract price is double that of the last three units of Bigfoot ordered by Ensco in 2003-05 at about US$111m each. Demand for jack-up rigs are still strong, with a total of 19 units ordered YTD globally compared to a total of 15 in 2012.

The chartering momentum for jack-up rigs also showed positive momentum. As of end-March, 50% of the jack-up rigs due for delivery in 2013 have been snatched up with contracts, compared to only 24% in Nov 12.

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