KS Energy announced that one of its subsidiaries, together with its joint operation partner Pertamina Drilling Services Indonesia will deploy the KS Java Star jack-up drilling rig to Indonesia’s West Madura oilfield located offshore Java, for drilling operations, Seatrade Asia online reports.
The total value of the one-year contract plus a one-year extension option will be $87.6m if the option is exercised and the operation is expected to commence in the fourth quarter of 2012. The joint operation agreement is currently being finalized.
The joint operation will provide exploration and development drilling and/or work-over drilling services with one cantilever type jack-up drilling rig capable of operating in water depths of up to 300 feet and drilling to depths of 15,000 feet.
This contract is not expected to have any material effect on the earnings per share and net tangible assets per share of the company for the financial year ending 31 December 2012.
KS Energy had bought the Friede & Goldman design jack-up in June for $38.5m
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