LeTourneau Technologies, Inc. Enters into Contracts with COSCO (Nantong) Shipyard Co., Ltd. for Newbuild Jack-up Rig Kits

 
 
Houston, Texas – June 16, 2011

LeTourneau Technologies, Inc. ("LeTourneau") is pleased to announce it has entered into contracts to furnish two kits and licenses to COSCO (Nantong) Shipyard Co., Ltd. ("COSCO") for the construction of two self-elevating Mobile Offshore Drilling Units ("jack-ups") of the LeTourneau WORKHORSE® Class design. The rigs will be outfitted with 536-foot legs for operations in water depths up to 400 feet. The rigs will have a hook-load capacity of 2 million pounds, delivering 35,000 feet of drilling depth, and will feature off-line stand building capability. The rigs can accommodate 150 persons onboard and will be designed and built to ABS crew habitability HAB+ standards.

The rigs will be constructed at the Nantong, P.R. of China facility of the COSCO Shipyard Group for KS Drilling Pte. Ltd. The first rig is scheduled for delivery in the third quarter of 2013, with the second rig following in the first quarter of 2014.

LeTourneau's delivery of the kits, which includes the rig's leg components, jacking system, skidder system, pedestal cranes and certain other components, will occur in stages in accordance with the rig construction schedules. The initial delivery of equipment is expected to occur in the fourth quarter of 2011, with final component delivery during the first quarter of 2013.

The WORKHORSE Class jack-up can provide over 10,000 kips of drilling variable load with industry leading cantilever capacities. The rig's enhanced cantilever package offers 80-foot reach and a 3,200 kip maximum combined drilling load capacity. The rig is designed for drilling high temperature / high pressure wells in water depths up to 400 feet.

This marks the first time the WORKHORSE Class design, introduced in 2008, has been sold to a customer other than Rowan, and the first time our jack-up rigs are to be constructed by COSCO. "LeTourneau is very pleased to see the broad market acknowledge the superior capabilities of the WORKHORSE design, as well as further broadening our relationships to include new licensee shipyards," states Thomas Burke, President and CEO of LeTourneau. In addition to delivering the kit components, LeTourneau will also be providing assistance to COSCO via a team of construction specialists who were involved in the previous three WORKHORSE newbuild projects.

LeTourneau built the world's first jack-up drilling rig in 1955 and is an acknowledged leader in the supply of offshore jack-up drilling rigs today. LeTourneau has designed and been involved in the construction of approximately one-third of all jack-up rigs in service, and currently has 14 jack-ups under construction through license agreements.

LeTourneau's vision is to be recognized by our customers as designing, building and supporting the most innovative, capable and reliable equipment for developing the world's natural resources.

The contracts are not expected to have a material impact on the net tangible assets and earnings of LeTourneau for the year ending 31 December  2011.