Will Build Two Additional 240-C Jack-Ups
HOUSTON--(BUSINESS WIRE)--Nov. 1, 2007--Rowan Companies, Inc.
(NYSE:RDC) announced today that it has entered into contracts with
Keppel AmFELS, Inc. for the construction of four Super 116E class
jack-ups. The rigs will be built at AmFELS' Brownsville, Texas
shipyard, with delivery scheduled at approximately four-month
intervals beginning in the second quarter of 2010. Rowan's total cost
of each rig is expected to average approximately $175 million, with
more than one-third of that amount attributable to the cost value of
the design, kit components and drilling equipment to be provided by
the Company's manufacturing businesses.
Rowan will also build two additional 240-C class jack-ups at its
own Vicksburg, Mississippi shipyard for delivery in the third quarters
of 2010 and 2011, at a total cost of approximately $400 million. The
240-C was designed to be a significant upgrade of the original 116-C
class, which has been the "workhorse" of the global drilling industry
since its introduction in the late 1970s. The Company's first two
240-C rigs are currently under construction at Vicksburg, with
delivery expected in the third quarters of 2008 and 2009.
Danny McNease, Chairman and Chief Executive Officer, commented,
"We have continued to experience unprecedented global demand for
premium drilling equipment. Each of these new rigs will employ the
latest technology to be able to efficiently drill high-pressure,
high-temperature and extended-reach wells in just about every
prominent jack-up market throughout the world. All six of these new
rigs will be equipped to reach 35,000 feet.
"The construction contracts with Keppel AmFELS afford us the
opportunity to accelerate the expansion of our offshore drilling
business by partnering with a first class organization and shipyard.
We will provide our innovative rig design and drilling equipment to
this project in further testament to the synergies between our
drilling and manufacturing divisions, resulting in an average $20
million cost savings per rig and a proportionately higher return on
our investment."
Rowan Companies, Inc. is a major provider of international and
domestic offshore contract drilling services. The Company also owns
and operates a manufacturing division that produces equipment for the
drilling, mining and timber industries. The Company's stock is traded
on the New York Stock Exchange. Common Stock trading symbol: RDC.
This report contains forward looking statements within the meaning
of the Private Securities Litigation Reform Act of 1995, including,
without limitation, statements as to the expectations, beliefs and
future expected financial performance of the Company that are based on
current expectations and are subject to certain risks, trends and
uncertainties that could cause actual results to differ materially
from those projected by the Company. Among the factors that could
cause actual results to differ materially include oil and natural gas
prices, the level of offshore expenditures by energy companies, energy
demand, the general economy, including inflation, weather conditions
in the Company's principal operating areas and environmental and other
laws and regulations. Other relevant factors have been disclosed in
the Company's filings with the U. S. Securities and Exchange
Commission.
CONTACT: Rowan Companies, Inc., Houston
Vice-President - Investor Relations
William C. Provine, 713-960-7575
www.rowancompanies.com
SOURCE: Rowan Companies, Inc.
