The Board of Directors of KS Tech Ltd is pleased to announce that the Company has been appointed by Gulf Drilling International Limited (“GDI”) for the procurement and project management of the conversion of a late 70’s jack up production unit to a mobile offshore drilling unit. For this the Company will be paid a management fee. The Company will also provide components and services to support the upgrade and subsequent operations of this rig.
The size of the total project is estimated to be around US$43 million. The conversion work is expected to be completed by end 2005. The rig will then be deployed in the Arabian Gulf for a drilling campaign for a Major Operator. This rig conversion project is KS Tech’s fourth such rig related projects in the last 15 months.
Mr Chew Thiam Keng, the Managing Director of KS Tech commented, “We are privileged to be working with GDI on this rig conversion project. Given the long lead time and high capital cost of building new rigs, the refurbishment of vintage rigs is a practical solution for our customers.”
GDI is a 60:40 joint venture established in May 2004 by Qatar Petroleum and Japan drilling company
. The Doha-based JV is acquiring used and newbuild rigs to meet the escalating demands for drilling rigs in the region.