The stacked jackup Maersk Guardian will have its drilling package stripped and residential facilities installed for a new contract. Maersk Drilling won a 5-year contract from Maersk Oil for offshore accommodation work on various fields in the Danish part of the sea. The jackup is currently stacked in Frederikshavn.
With dozens of idle offshore drilling rigs stacked around the world, conversion to alternative use is becoming more attractive to drilling contractors. It reduces the supply of drilling rigs, while turning the rigs’ economic situation around from cost center to revenue center.
The contract will begin in September 2016 spanning a 5 year period plus 2 1-year options. With a total value of $142m, the contract implies a dayrate of around $79,000 per day.
Built in Japan in 1986, designed for year-round North Sea operations, and with 132 meters of leg length; the Maersk Guardian will remain stacked in Frederikshavn for refurbishments until the onset of the contract in 2016.
Work to be done on the Maersk Guardian includes “decommissioning of the cantilever including drilling package, overhaul of auxiliary systems to support accommodation units, overhaul of existing accommodation block on the rig and installation of new accommodation modules,” per the Maersk Drilling press release on the news.
Head of Global Sales in Maersk Drilling, Morten Pilnov states, “We are pleased that we will get Maersk Guardian back on the water. In this market, it is important to seek out new ideas in order to keep our rigs employed. An accommodation contract like this is a good example of that and it adds to our contract backlog.”