Frigstad exits deepwater rig market

Baku. 7 December. REPORT.AZ/ Offshore drilling contractor Frigstad Offshore has decided to exit from an investment in Frigstad Deepwater’s newbuilds.

Report informs citing foreign media, Frigstad Deepwater Holding Ltd, a subsidiary of Frigstad Offshore Group, has decided to sell all of its shares in Frigstad Deepwater Ltd to a subsidiary of China International Maritime Containers Group (CIMC).

Frigstad Deepwater Ltd, which has been jointly owned by Frigstad Offshore Group and CIMC since 2012, has two 7th generation ultra deepwater drilling units of the Frigstad D90 design under construction at the Yantai CIMC Raffles shipyard in Shandong, China. The units, Frigstad Shekou and Frigstad Kristiansand, are scheduled for delivery in 1Q‐2017 and 3Q‐2017, respectively.

As a consequence of Frigstad Offshore’s exit, Frigstad Deepwater will become a wholly owned subsidiary of CIMC and be renamed “CIMC Bluewhale Rig Ltd”. The operational management of the rigs will be taken over by Bluewhale Offshore Pte Ltd, also a subsidiary of CIMC, and the rigs will be renamed Bluewhale I and Bluewhale II. A team from Frigstad Offshore, the current manager of the rigs, will continue to supervise the construction of the two rigs until completion.

Harald Frigstad, Chairman and founder of the Frigstad Group, stated that the ultra deepwater market has been extremely challenging for a while: "We have agreed with CIMC that it is in the best interests of both parties that our group exit from the investment in Frigstad Deepwater Ltd at this moment. We are doing this on friendly terms and will remain a close partner of CIMC also in the future. Our exit from Frigstad Deepwater Ltd gives us a good foundation to position the Frigstad Group for the industry recovery."