Maersk Drilling (CPH: DRLCO) is selling two of its jack-up rigs for total of US$31 million, the company reported Monday.
The drilling contractor has already sold its Maersk Guardian jack-up to New Fortress Energy (NASDAQ: NFE), and it has agreed to sell another jack-up – Maersk Gallant – to New Fortress as well, Maersk Drilling noted in a written statement emailed to Rigzone. The seller anticipates the second all-cash transaction to close next month.
According to Maersk Drilling, New Fortress will use the rigs for non-drilling purposes in its planned Fast LNG project. The Fast LNG design combines modular, midscale liquefaction technology with jack-ups or similar floating infrastructure and serves as a lower-cost alternative to today’s floating liquefaction vessels, New Fortress points out in a March 15, 2021, written statement. The firm also noted that a permanently moored floating storage unit will store LNG alongside the floating liquefaction infrastructure.
“Our innovative Fast LNG liquefiers should allow us to produce LNG between an expected $3-4 million British thermal units for our growing portfolio of terminals around the world,” New Fortress CEO Wes Edens commented in mid-March. “This technology can be installed quickly and cheaply to access stranded, low-cost natural gas at a fixed price to meet the global demand for more affordable, reliable, and cleaner energy.”
New Fortress in March issued a limited notice to proceed for the first Fast LNG project to Fluor (NYSE: FLR), Chart Industries Inc. (NASDAQ: GTLS), and Baker Hughes (NYSE: BKR). The developer added that it expects the project to become operational in late 2022.
Maersk Drilling’s fleet will comprise 12 jack-ups and eight floaters following the sale of the ultra-harsh environment rigs to New Fortress. The company took delivery of Maersk Guardian (now called “Guardian”) and Maersk Gallant in 1986 and 1993, respectively.
“These transactions will contribute to the necessary rationalization of the global drilling rig fleet and they are further in line with Maersk Drilling’s strategic priority of maintaining a fleet of modern, high-quality assets,” remarked Maersk Drilling CEO Jørn Madsen. “We’re also pleased that the rigs will be re-purposed and deployed by New Fortress Energy for a project which focuses on providing low-carbon affordable energy.”
To contact the author, email mveazey@rigzone.com.
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