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Tue 1 May 2007 12:00 AM

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New jack-up contract and a stake in the rig for MIS

New contract keeps Sharjah-based yard busy building jack-up rigs for oil exploration industry.

Sharjah-based Maritime Industrial Services (MIS) has won a US $148 million contract to construct and supply a Friede & Goldman Super M2 offshore jack-up rig.

The order was received from a newly established joint venture company comprised of KS Energy Services, listed on the Singapore Exchange, and Amwal Al Khaleej Commercial Investment Company, a Saudi private equity company, and MIS itself.

MIS has already received a US $5 million deposit towards the down payment for the rig. MIS business development director, Ian Anderson, attributed the award to the speed with which the company could carry out the construction work.

"MIS can deliver the rig in June 2009. The earliest other yards in Singapore and the US are quoting is 2010 and 2011," he said.

The award also includes the optional supply and construction of an additional jack-up drilling rig. Under the terms of the deal, KS Energy must declare their intentions within six months of the contract being signed.

MIS will dedicate one of the 30 000 foot National Oilwell Varco drilling packages that it ordered at the end of 2006 to the first rig, to ensure delivery in 2009. The project will take the company's order backlog to over US $400 million - the highest in its history.

Anderson said MIS will continue to promote this type of venture between established chartering companies and drilling contractors with local companies holding equity.

"There are a number of prominent energy oriented investment companies in the area and most of the jack-ups operating in this part of the world - 90 out of a world-wide total of 380 - are owned by international operating companies," he said.

"It is part of a natural process that national companies, such as NDC, Gulf Drilling and Aramco, will eventually want to own their own fleets."

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