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THE first semi-submersible rig (semisub) to be built in Singapore over the last 14 years for drilling offshore Azerbaijan is nearing delivery.
The semisub has arrived in Singapore-based yard group Keppel Offshore & Marine's (O&M) subsidiary Caspian Shipyard Company (CSC).
CSC is on track to deliver the semisub to Caspian Drilling Company Ltd (CDC), a subsidiary of the State Oil Company of Azerbaijan Republic (SOCAR), Keppel O&M said after trading close on Thursday.
This delivery by a Singapore-based yard group to Azerbaijan comes 14 years after Keppel O&M delivered the first semisub, Maersk Explorer, to the Caspian country back in 2003.
Delivering the columns of the semisub built in Singapore was an engineering feat of its own as the structures had to be transported through the narrow Volga-Don canal to reach Baku in Azerbaijan.
The Business Times understands that the rig will undergo modification before its final delivery to fit the purpose of a contract in the offing for its owner, CDC.
Shielded by a reportedly low per barrel production cost of US$20, upstream oil and gas projects off Azerbajian remain economical even at US$50 per barrel oil prices.
CDC is understood to be nailing down the details for potentially a long-term charter with an oil major.