Keppel AmFELS launches first of four oil rigs

This is an extract from "The Monitor" at http://www.themonitor.com/news/launches-31661-amfels-oil.html

A massive offshore drilling rig slid into the water with
a mighty splash Friday morning at the Keppel AmFELS yard at the Port of Brownsville as launch crews raced to beat an approaching storm.

A triumphal roar went up from the crowd, which included scores of hard hat-wearing workers who had helped build the seagoing structure. Tugboats immediately went to work corralling the ponderously named Rowan EXL Super 116E No.1 — the first of four “jack-up” rigs Keppel AmFELs is building for Houston-based Rowan Drilling Co. Inc. Jack-up refers to the way the rigs are stabilized once they’re in place, with telescopic legs dropping down to the sea floor to raise the rig’s platform high above the waves.

Rowan president David Russell seemed to be riding high himself while on hand to witness the launch of the EXL, which was festooned with red, white and blue bunting.

“This is a very exciting day,” he said, explaining that his company owns LeTourneau, the firm that provides the ready-made components that Keppel AmFELS uses to build the giant rigs, which can operate in
350 feet of water or more and drill to a depth of 35,000 feet, or about 6.6 miles. Each rig costs just under $200 million.

“These are 50-year investments for us,” Russell said. “This rig is a little bigger and little stronger than most out there, so it’s a little more expensive. It will work in deeper water and can drill to greater depths.”

The drilling company specializes in ultra-deep drilling for natural gas, though exactly where EXL No. 1 winds up depends on the oil and gas company with which Rowan ends up contracting. The destination could be the Gulf of Mexico, the Middle East or elsewhere. Most of Rowan’s rigs are 50-100 miles offshore — far enough that they can’t be seen from the mainland — Russell said.

“In some unique situations we’re closer to the beach, but these rigs are very environmentally friendly,” he added. “It’s best in class.”

G.S. Tan, president and chief executive of Keppel AmFELS, said it takes 22-24 months to build the 35 million-pound EXL, three more of which are slated to be launched in four-month intervals until the order is complete.

Although it’s in the water, the first rig won’t actually be put into service for months, since further assembly is required. That includes installing the telescopic legs, equipment, living accommodations, helipad and other elements.

“We still have a good six or seven months of work,” Tan said. “A rig like that will keep about 1,000 people employed. Right now at AmFELS we have 1,600 employed because we are building five rigs.”

Donna Eymard, the port’s deputy director, calls Keppel AmFELS a “tremendous asset” for the economic splash the company makes not just in the Brownsville area but across the state.

“They bring all the big oil companies that they’re doing this work for,” she said. “Their employees stay here while they’re working on it. They rent houses. They go out to eat in restaurants. They buy things. So it’s just a tremendous economic benefit for the whole area and for the port as well.”

Eymard said events like Friday’s EXL launch are a feather in the cap for the port — and probably a source of satisfaction for the workers who build the rigs.

“I can imagine it’s a big source of pride to finally see it go in the water,” she says. “It is a big source of pride for everybody here. For AmFELS, for the port, for Rowan, it’s a good day.”

Steve Clark is a reporter for The Brownsville Herald.