Northern Offshore delays deliveries for two jack-up rigs

Business & Finance

Northern Offshore, Ltd. has negotiated a nine month delay in the deliveries of its high specification jack-ups, Energy Engager and Energy Encounter from a shipyard in China.

The new delivery dates for these units are December 2016 and June 2017 respectively.

President and CEO Gary Casswell commented: “We sincerely appreciate the cooperation of our shipyard to allow us to delay the delivery of these units to enable us to better match contract opportunities in what we believe will be a more robust market at that time.

“This will allow us to defer approximately $22 million in owner furnished equipment expenditures for these units from calendar year 2015 to 2016.”

The rigs are being built at COSCO (Dalian) Shipyard Company Limited in China. They are of LeTourneau Super 116E, self-elevating cantilever jack-up design with 120 beds and 1 bed in sickbay.

The company also recently announced that Russian oil company Rosneft decided not to go forward with a rig contract previously agreed upon with Northern Offshore.