KS Energy’s subsidiary KS Drilling has secured a contract extension for one of its jack-up drilling rigs.
KS Energy said on Thursday that the company received a contract extension for the KS Java Star 2 jack-up drilling rig.
The new deal extends the contract awarded to the company back in April 2017 . The initial contract worth $11.1 million saw the rig begin operations offshore Vietnam during the same month.
The new extension worth $3 million will see the rig remain on contract with the same undisclosed operator.
The company added that the contract extension was not expected to have any material effect on the earnings per share and net tangible assets per share of the company for the financial year ending December 31, 2018.
As for the rig, it is of a Friede & Goldman Super M2 design. The jack-up was delivered in April 2014 by Shanghai Zhenhua Heavy Industries (ZPMC) in China. It was constructed at a cost of $165.5 million.
KS Drilling, an 80.09%-owned subsidiary of KS Energy is an investment holding company which provides onshore and offshore drilling services, rig management and support services, oilfield equipment ownership and leasing.