Pertamina extends contract for 'KS Java Star'

Pertamina Drilling Services Indonesia has notified KS Drilling Pte Ltd (KS Drilling) of its intention to exercise the 1 year option in its current drilling contract for the ‘KS Java Star’ jackup rig. The yearlong option is part of the contract agreed upon by Pertamina and KS Drilling on the 24th August 2012 and means that the ‘KS Java Star’ rig will now be drilling on the West Madura oilfield in Indonesia until January 2015. The contract extension is valued at US$41 million.

Vietsovpetro contracts 'KS Java Star 2' jackup for drilling in Vietnam

KS Energy Limited (KS Energy) has announced that the company’s wholly owned subsidiary KS Drilling Pte. Ltd (KS Drilling), has secured a contract with Vietsovpetro in Vietnam for the chartering of a 300ft jackup rig. Vietsovpetro will contract the ‘KS Java Star 2’ jackup rig that is currently under construction at Shanghai Zhenhua Heavy Industries Ltd (ZPMC)’s shipyard in Nantong, China. The contract is for a period of one year with an option to extend for an additional one year and is due to commence in the second quarter of 2014. The total value of the contract, excluding the potential extension, is approximately US$58 million.

KS Drilling names the 'KS Java Star 2' jackup

KS Energy Limited has announced that the company’s new jackup drilling rig, the ‘KS Java Star 2’ is currently being commissioned and is expected to be delivered by the end of March 2014. Upon delivery from the shipyard, the unit will mobilise to Vietnam where it has been contracted by VietsovPetro on an initial 12 month contract. The ‘KS Java Star 2’ is being constructed at Shanghai Zhenhua Heavy Industries Ltd’s (ZPMC) shipyard in Nantong, China. The total cost of the unit is US$165.65 million and the unit is capable of operating in water depths of 300ft.

KS Energy bags new contract for 'KS Medstar-1'

KS Energy Limited (KS) has announced that the company’s subsidiary KS Drilling Pte Ltd (KS Drilling) has been awarded a new contract for the ‘KS Medstar-1’ jackup rig. Atlantic Marine Services Egypt S.A.E, the jackups operator received confirmation from Belayim Petroleum Company (Petrobel) of the extension of their contract for the charter of the ‘KS Medstar-1’, the group’s 300ft cantilever jackup drilling rig. The contract is for a firm one year period with an additional one year option, which took effect on the 15th May 2014. The contract extension is has a total value of approximately USD40.9 million.

KS Energy places newbuild jackup order with ZPMC

KS Energy Limited (KS) wishes to announce that a subsidiary of KS Drilling Pte Ltd (KS Drilling), KS Rig Invest Five Ltd., has entered into a contract effective 23rd June 2014 with Shanghai Zhenhua Heavy Industry Co., Ltd. (ZPMC) for the construction and delivery of one new build jack-up drilling rig based on the Friede & Goldman JU-2000E design, with an option granted to KS Drilling for the construction and delivery of a second rig of the same design. The newbuild (‘KS Drilling Jackup TBN 1’) is expected to be delivered in 27 months from the order date, whilst KS Drilling has the right to exercise its newbuild option at any time within six months of the order date. The cost of construction for the newbuild unit is approximately USD199.2 million, exclusive of additional costs to be paid for project management, drilling and handling tools, spares and capitalized interest. The newbuild announcement follows KS Drilling’s decision to sell one of its other newbuild jackups, the announced the sale of the ‘KS Orient Star 1’ jackup rig on the 19th June 2014.

'KS Java Star' awarded short term contract in Indonesia

KS Energy Limited (“KS Energy”) has announced that PT Atlantic Oilfield Services, a subsidiary of KS Drilling Pte. Ltd (“KS Drilling”) and its joint venture partner Pertamina Drilling services, has been awarded a contract for the KS Java Star jackup rig. The contract which is expected to begin this month is with an as yet unnamed client and is anticipated to be worth USD7.2 million. The exact length of the contract was not released by KS Energy.

'KS Java Star' contract terminated

KS Energy Ltd. has announced that the contract awarded to its KS Java Star jackup rig on the 6th March 2015 with a value of USD7.2 million has now been cancelled. The contract was cancelled following various meetings with the client, and their request to delay the beginning of the contract. The client chose to terminate the contract as both parties were unable to agree upon a new contract start date.

KS Drilling delay delivery of newbuild jackup

KS Energy Limited (“KS Energy”) has announced that one of the company’s subsidiaries KS Drilling has reached an agreement with COSCO shipyard to delay the delivery of a newbuild jackup rig. The unit in question is hull number 408 (KS Orient Star 2), which was ordered from the shipyard in 2011. The unit was originally scheduled to be delivered in Q1 2014, and was then reported to have been delivered in January 2015; however, KS Drilling has now pushed this back until 30th April 2016. Under the terms of the new agreement KS Drilling are entitled to take delivery of the rig at any time prior to the 30th April 2016, so long as COSCO shipyard receives full payment five working days in advance. KS Drilling and COSCO shipyard have also, mutually agreed that: in the event that either party receives an offer from a third party under which both parties could recover their respective costs, either party shall be entitled to sell the rig.

Indonesia Sakti exploration well reaches total depth

KrisEnergy Ltd. (“KrisEnergy” or “the “Company”), an independent upstream oil and gas company, announces that it has completed drilling of the Mustika-1 exploration well in the Sakti production sharing contract (“PSC”) in the East Java Sea. Mustika-1 was drilled to a total measured depth of 2,768 feet (844 metres), or 2,667 feet total vertical depth subsea, and encountered gas in the Tuban and Kujung I formations. Initial indications from wireline logs are that the gases have a high carbon dioxide content and therefore are likely to be below the economic threshold for a commercial discovery. The well will be plugged and abandoned and a detailed analysis of the well data and gas samples will be undertaken to review the remaining prospects and leads in the Sakti PSC. Chris Gibson-Robinson, Director Exploration & Production, commented: “This is our final exploration well for 2015 with the first five being drilled in the Gulf of Thailand, all of which were successful. The first four wells resulted in the recently approved plan of development for the Rossukon field." KrisEnergy was awarded the Sakti PSC in February 2014. The block covers 4,974 sq. km in the East Java Sea over the western margin of the East Java Basin, Bawean Arch and the Muriah Trough. KrisEnergy is also the operator of the Bulu PSC, which is adjacent to the Sakti PSC and contains the Lengo gas discovery for which the Company received approval for its plan of development in December 2014. Front-end engineering design for the Lengo development was completed in the third quarter of 2015. Gas sales negotiations are ongoing and preparations are underway to tender the contract for engineering, procurement, construction and installation.

Delivery Delay for the KS Orient Star 2

The Board of Directors (the “Board”) of KS Energy Limited (the “Company”, and together with its subsidiaries, the “Group”) refers to the announcement dated 26 May 2011, the circular to shareholders dated 16 September 2011 in relation to the New Build Contracts (as defined therein) with COSCO Nantong Shipyard Co., Ltd. (“COSCO Shipyard”), and the announcement dated 10 July 2015. The Board wishes to announce that the KS Drilling Pte Ltd (“KS Drilling”) has entered into a further amendment agreement dated 5 May 2016 (the “Further Amendment Agreement”) with COSCO Shipyard in relation to the New Build Contract (the “Contract”) for the New Rig with builder’s hull number N408 (the “Rig”). In the spirit of partnership between KS Drilling and COSCO Shipyard, and in light of the currently unfavourable oil and gas market climate, and pursuant to the Further Amendment Agreement, KS Drilling and COSCO Shipyard have agreed to extend the time for KS Drilling to take delivery of the Rig from 30 April 2016 until 31 December 2017, on mutually agreed terms and conditions. The Further Amendment Agreement is not expected to have any material impact on the net tangible assets and earnings per share of the Company and the Group for the current financial year ending 31 December 2016. None of the Directors or substantial shareholders of the Company has any direct or indirect interest in the above transactions, save for their respective interest, through their shareholdings and/or directorships, as the case may be, in the Company.

Further Delay for New Build Jackup

KS Energy and COSCO Nantong shipyard have agreed to further delay the delivery of the new build jackup rig, the KS Orient Star 2 (hull no. N408). Following an earlier delay the rig was scheduled to be delivered on 31 December 2017. However, the latest agreement has postponed delivery by a further two years to 31 December 2019.