Support The Moscow Times!

Rosneft to Buy $708M Drilling Rig

United Shipbuilding Corporation is contracted to deliver a semi-submersible drilling platform to Rosneft by Dec. 15, 2014, Rosneft said in its annual report for 2010.

The price of the rig is tentatively set at $708 million.

However, Rosneft has yet to provide USC with the technical specifications for the platform, a USC representative told Interfax. "We're ready to build it, but what exactly is needed?" he said.

Construction would be carried out at the Vostok-Raffles shipyard in the Far East, a joint venture between USC and Chinese-Singaporean Yantai-Raffles. However, construction of the shipyard has not begun yet.

In fall 2010 a source at the Industry and Trade Ministry told Interfax that there is still no design plan for the future shipyard, and another source at USC mentioned difficulties in selecting a site for the construction.

However, the USC representative said the site has now been chosen and the company is continuing with the plan to build the semi-submersible at Vostok-Raffles. "We have not examined other options," he said.

So far USC has only invested in the charter capital of the joint venture under its agreement with Yantai-Raffles. It is to finance construction of the shipyard on its own. Rosneft is obligated to pay 100 percent of the cost of the semi-submersible within 10 days of delivery.

Vostok-Raffles also received an order last year to build four tankers for Caspian Gas.

Read more

Independent journalism isn’t dead. You can help keep it alive.

The Moscow Times’ team of journalists has been first with the big stories on the coronavirus crisis in Russia since day one. Our exclusives and on-the-ground reporting are being read and shared by many high-profile journalists.

We wouldn’t be able to produce this crucial journalism without the support of our loyal readers. Please consider making a donation to The Moscow Times to help us continue covering this historic time in the world’s largest country.