Kencana reported that its wholly-owned subsidiary, Kencana Marine Drilling Sdn. Bhd., is building 2 units of Tender Assisted Drilling Rigs (TADRs).

The TADRs are currently being constructed by Kencana HL Sdn. Bhd., another wholly-owned subsidiary of Kencana Petroleum at its fabrication yard in Lumut, Perak at a cost of USD 145 million each and are expected to be completed by first quarter of calendar year 2013. The total cost of the 2 units of TADR of approximately USD 290 million will be financed by a combination of internal funds and borrowings.

The building of these rigs is in line with Kencana Petroleum Group's plan to expand its drilling business and service offerings in the upstream oil and gas services value chain. The new rig design is a further refinement to the existing TADR (KM-1). They will include enhanced safety features, heavier crane for efficient operation and lighter derrick equipment set to accommodate utilization on a wider range of drilling platform.

The TADRs when completed and in operation are expected to enhance the earnings of Kencana Petroleum Group.

Tags: Kencana Petroleum