Surge in GCC Rig Refurbishment Market

UAE-based Maritime Industrial Services Co. Ltd. Inc. (OSE: MIS) reports the award of several recent rig refurbishment projects worth over US$ 25mn thus bringing to ten the total number of rigs currently at MIS’ yard, five in refurbishment projects and the five new-build offshore jack-up drilling rigs currently under contract. This is the largest number of rigs MIS has ever had at its yard and has contributed to a firm backlog of over US$ 520 mn.

The refurbishment projects span a wide range of services from standard refurbishment required to extend certification to upgrading and testing work for a number of international clients including Transocean, Thule Drilling ASA, Ensco International and Hercules Drilling. The first of these projects, Transocean’s F.G. McClintock, is scheduled for delivery in September 2008. The work on all rigs is currently taking place at both of MIS’ quayside yards in Port Khalid. With work on the five new-build rigs already in progress, MIS’ 200,000 m² yard space has witnessed its largest ever line-up. This increase is indicative of the growth in the GCC rig refurbishment market, with the majority of rigs today in the region of 25-30 years old.

“While our efforts were recently focused on filling the new-build order book, we have in parallel maintained our strategy of supporting our more traditional business activity, namely, rig refurbishment work as this further highlights MIS’ unique position which spans a number of business lines,” said Jerry Smith, MIS’ Managing Director. The five new-build projects continue on schedule. Steel-cutting for Hull 108 took place last month. MIS is poised to deliver the SeaWolf Oritsetimeyin (Hull 104), the first offshore jack-up drilling rig built in the Middle East in October 2008 and its sister rig, the SeaWolf Onome, in December.

“MIS is pleased that these current projects have come from a number of repeat clients as well as some new international clients whom we hope to continue working with,” Smith said. “We anticipate this increase to continue across both these business lines as the market sees a renewed increase in demand for production in the region”.

A panoramic view of MIS’ quayside showing the two SeaWolf new-build rigs and three of the five rig refurbishment projects currently underway

Maritime Industrial Services Co. Ltd. Inc. (MIS)
Rana Said, Corporate Communications Director
Tel: +9716 5285345 ext. 723
E-mail: rana@mis.ae