Singapore-listed offshore services provider Viking Offshore & Marine has clinched a 48-month charter for a second land drilling rig system at approximately USD31 million.
The charter is signed by its subsidiary Viking LR2, which will lease a 1,500 bhp train-type land rig and related drilling equipment system to a Chinese land rig specialist. Under the charter, the rig will be deployed to a North African oilfield concession jointly owned by a South Asian energy operator and the local energy authority.
In September 2014 Viking had acquired from and leased back its first land rig to the same charterer, which used it for natural gas exploration. After positive identification of hydrocarbon potential in the locality, the second rig was chartered to accelerate drilling activities.
“The second charter enhances our portfolio of earnings-accretive assets in a market environment of low oil prices. We intend to capitalise on our track record to build up our charter fleet to enhance shareholder value,” Daniel Lin, the executive director of Viking, said in a corporate statement to the Singapore Exchange.
The company expects to recognise charter income from its second rig in the second half of the financial year ending on 31 December 2015.