China Oilfield Services Limited (COSL) said it has entered into a charter contract to dry-lease a jackup drilling rig “Yu Song” with KS Tech Ltd of Singapore.
Built in 1976, the rig is equipped with legs of 127.2 meters long with a maximum drilling depth of 6,000 meters. Yu Song will be transported to China’s Dalian City at the end of November. Upon completion of the preliminary renovation at the Dalian shipyard, the rig will be engaged in certain exploratory drilling activities in the Bohai Bay area.
In a statement, COSL said: “Subsequent to these exploratory drilling activities, the rig will be sent to the shipyard again for upgrading. To support drilling activities offshore China, KS Tech has agreed to renovate and upgrade the rig with a cantilever unit before and during the charter.
“The upgraded rig will continue its service to COSL for the remainder of the contract term. The term of the charter contract is eight years, including the time spent on renovation and upgrading of the rig. The renovation and upgrading will be financed by KS Tech, and the company will not pay any rent when the rig is subject to such renovation and upgrading.”
Jin Xiaojian, COSL’s executive vice president, and Tan Kim Sang, KS Tech chairman, signed the charter contract on behalf of the contracting parties.
Li Wen-xian, COSL’s executive director and executive vice president, said: “The dry-lease of Yu Song will enhance the capabilities of our drilling rigs in our Bohai Bay E&P activities. COSL also welcomes this additional opportunity for overseas cooperation.”
Listed on the Singapore Stock Exchange, KS Tech is engaged in oilfield services related businesses.
COSL is the leading integrated oilfield services provider in the offshore China market. Its services cover each phase of offshore oil and gas exploration, development and production, including drilling, well services, marine support and transportation and geophysical services. COSL was listed on the Hong Kong Stock Exchange on November 20, 2002.
COSL owns and operates a fleet of 12 drilling rigs, including 9 jack-ups and 3 semi-submersibles. It offers well services that include logging, drilling fluids, cementing, directional drilling and well completion.