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Wed 27 Aug 2008 01:51 PM

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Swicorp jacks up Mosvold interest

Saudi firm takes controlling stake in offshore rig company.

Saudi-based Swicorp Joussour has taken a 51% stake in Mosvold Middle East Jackup, a specialist jackup drilling rig company.

The company, which will be operated by Mosvold Shipping Holding, already has contracts with Maritime Industrial Services (MIS) for the construction of two Super M2 F&G jackup rigs, with the option of two additional rigs.

The first rig is currently under construction at the MIS fabrication base and shipyard in Sharjah, United Arab Emirates, with expected delivery dates in December 2009 and March 2010.

“We expect that the sustained high oil prices in combination with a challenge to replace reserves will continue to support high dayrates for these types of rigs,” said Faysal Hamza, executive director of Swicorp’s private equity division.

“The Persian Gulf has historically been relatively underdeveloped in this field, but we think this will change due to a depletion of easily accessible onshore resources and a general need for more oil and gas production,” he added.

Presently, the Middle East is the fastest growing jackup market in the world - a factor that Swicorp hopes will keep rig prices and day rates high.

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