Keppel clinches a USD242m deal for a jackup rig

The rig is scheduled for delivery in 1Q 2015.

Here's more from Nomura:

Secures contract for KFELS B Class JU under construction
Keppel Kazakhastan, along with consortium partner Ersai Caspian Contractor LLC, has secured a USD242mn contract from Teniz Burgylau LLP for a KFELS B Class JU rig. The rig, which is scheduled for delivery in 1Q 2015, will be deployed in the Caspian Sea when delivered. The work scope of the rig is to be shared equally between the consortium partners.

About Teniz Burgylau
Teniz Burgylau LLP is an indirect wholly owned subsidiary of JSC NC KazMunayGas of Kazakhastan and was founded in April 2008. Teniz Burgylau’s primary operating activities include drilling exploration, appraisal and production wells in the Caspian sea.

New rig at higher price and milestone payment terms
We note that the order for the new rig from Teniz Burgylau comes at a significantly higher USD242mn, which compares favourably with the USD184mn and USD199mn for similar rigs ordered in July 2011 and October 2011 by Asia Offshore and Safin, respectively. According to a Keppel spokesperson, the benefit of higher price for new rig will be partly offset by higher building costs, as this will be the first KFELS B class rig to be built in Keppel’s Kazakhastan yard.

The rig is scheduled for delivery in 1Q 2015 vs delivery dates of up to 1H14 for similar rigs ordered since Jan 2011. We attribute a later delivery date partly to an extended building period at the Kazakhastan yard and logistics issues due to the landlocked nature of the yard.