Awilco bets on Norway, orders market's first offshore drilling rig in four years

David Carter Shinn
Feb 27, 2018

Awilco just announced a $65 million equity placement to fund a $425 million harsh environment semisub from Keppel FELS.

We'll keep it short for now, but Awilco's announcement today regarding their order of a newbuild Moss Maritime CS-60 ECO midwater harsh environment semisub is a great deal for a number of reasons. 


First a quick recap:

– Price: $425 million (plus estimated $30 million in "ready to drill“ costs)

– Payment terms: 10%/10%/80%

– Delivery in March 2021

– Three options for additional rigs


High quality yard, state-of-the-art design, attractive price

Awilco's newbuild is based on the same hull design as the other CS-60s which have recently been acquired – West Mira, Bollsta Dolphin, West Rigel, and Stena Midmax – and more specifically equipped to suit Norwegian Continental Shelf requirements.  Our Rig Valuation Tool (RVT) values the four existing rigs in drilling condition at around $450–502 million.  

Awilco's purchase price is at the low end of the range as it is and they (opposed to the owners of the four rigs mentioned above) don't have to take delivery until 2021. They also avoid stacking costs and can wait for dayrates to rise.

If you believe in midwater harsh environment market, this is one of the best deals you can do.


More newbuilds to come based on expected increase in Norwegian semisub demand

We've talked about the potential shortage of premium (new, high spec) semisubs for the Norwegian sector for a long time.  And we expect to see more orders this year as the hottest segment of the rig market keeps heating up.  


Data: Bassoe Offshore, Awilco; Image attribution: Moss Maritime/Awilco