UAE-based Maritime Industrial Services Company (MIS) was recently awarded a $335 million contract for the design and construction of two offshore jack-up drilling rigs for Mosvold Middle East Jackup (MEJU).
With this award, MIS is now positioned with a mid-2008 confirmed order backlog of $480 million, an increase of $110 million on its position at this time last year, excluding the two Orion rigs subsequently deleted from backlog, according to Jerry Smith, MIS managing director.
MIS will supply the two firm rigs (Hull 106 and Hull 108) on a turnkey basis. It will be designed and built at MIS’ 200,000 sq m shipyard in Sharjah, UAE. With construction well underway on the first of the two new rigs, Hull 106, MIS says it was able to offer MEJU an attractive and competitive delivery schedule with contract delivery in December 2009 and March 2010, respectively. 
MEJU, established and registered in the Cayman Islands by Mosvold Shipping Holding Ltd, is a single purpose company owning jack-up drilling rigs to be operated in the Middle East. MIS holds 8.7 per cent of equity in MEJU. The relationship between MIS and the Norwegian Mosvold shipping family dates back several years: in 2006, Mosvold Jackup signed a contract with MIS for the supply and construction of two F&G Super M2 offshore jack-up drilling rigs, Hulls 104 and 105, the first ever to be built in the Middle East and now nearing completion at MIS’ quayside. Both these rigs, subsequently sold to SeaWolf Oilfields, are set for delivery in the third and fourth quarters of 2008 respectively.
“Our strong relationship with MIS continues with this new contract. With their reputation as a professional yard and their performance on the first two rigs, our decision to build at MIS was made easier,” says Roy Mosvold, chairman of MEJU.
“The Middle East is the fastest growing jack-up market and we look forward to further developing our relationship with MIS as together we address the demand for more new rigs in this market.”
According to Smith, MIS has seen an increased interest in the company’s newbuild programme which he attributes to the increase in demand for production in the region. “We are very pleased to receive this repeat order from Mosvold and we see it as an important one to further cement MIS’ position as the offshore jack-up rig builder of choice in the Middle East.” says Smith. “We expect interest in our newbuild programme to continue over the next few years and we are continually looking for opportunities to expand our yard facilities by seeking out ideal locations in the UAE.”
The two rigs, Hulls 106 and 108, have a Friede and Goldman (F and G) Super Mod 2 design with 30,000 ft rated drilling depth and an operating water depth capability of 300 ft, ideal for off-shore drilling in the Middle East region where the average water depth is 115 ft (35 m). There is accommodation for 110 people on each rig.
With this contract, MIS now has five offshore jack-up drilling rigs under construction in its new-build programme. Hull 107, contracted to KSAM2Petrodrill Offshore, led by Singapore-based KS Energy Services is scheduled for delivery in the last quarter of 2009, ahead of its original schedule delivery date of first quarter, 2010.
MIS is a Panama-registered company having a major fabrication base and shipyard in Sharjah, UAE, and around 5,000 employees. The company was founded in 1979 and has 29 years of profitable operating history. It provides integrated onshore and offshore engineering, procurement, fabrication, maintenance, construction and shipyard services including oil, gas and petrochemical processing equipment, marine, structural and new-build offshore jack-up drilling rigs, site installation, construction, commissioning and shipyard services as well as professional, technical, operational and safety services. Reported revenue for the first quarter this year is $82 million with net profit of $3 million.
Swicorp Joussour Company recently took a majority stake in Mosvold Middle East Jackup Limited.
Joris Vreeburg, senior investment manager at Swicorp Private Equity, pointed out that Swicorp Joussour Company’s strategic objective was to invest in energy and related sectors that could directly benefit from the Mena region’s competitive advantages.
Presently, the Middle East is the biggest and fastest growing jackup market in the world, he noted.
“Mosvold has a very successful track record, extensive experience in the drilling industry and has again demonstrated that it is able to attract top-tier managers and investors.
“The oil and gas industry makes up the backbone of the Middle East’s economy and this company will be able to tap into the region’s demand for more offshore drilling rigs. The company will benefit from strong local knowledge combined with industry expertise from a small group of dedicated investors.”