Keppel secures 3rd CJ70 order from Maersk

The contract for a repeat Gusto CJ70 ultra harsh environment jackup lifted Keppel’s YTD order win to almost S$7 billiion.

The third CJ70 that Keppel is building for Maersk Drilling also propelled the offshore company’s net orderbook to S$14.7b.

The jackup is scheduled for delivery in 1Q15.

In a statement, DMG Research said that as part of the contract, Maersk will have an option to build an additional jackup of the same design.

"In our view, the contract win is positive: (1) the price of a CJ70 jackup is 12% higher compared to the units signed in Feb 2011; (2) the order showed that rig owners are willing to spend on newbuilds despite recent weakness in crude oil prices as demand remains strong,” the analyst said.

Maersk has lined up a four-year charter contract for the newbuild rig with Statoil in the North Sea.