Blue ocean drilling

COMPANY PROFILE

2015

BLUE OCEAN DRILLING

www.blueoceandrilling.com | +1 281-231-2790

Celebrating a successful first year Editorial: Rosie DeWinter

With a sound vision to become a major participant in the deep-water jack-up drilling market, delivering a high level of drilling efficiency, Blue Ocean Drilling signed agreements with Shanghai Waigaoqiao Shipyard in January and October last year for the construction of four Gusto MSC high specification jack-up rigs, due for delivery starting in the second quarter of 2016. Total World Energy speaks to CEO and Chairman, Dr. Yuanhui Sun, to discuss what he attributes the company’s success to so far…

Head-quartered in Houston, Texas, Blue Ocean Drilling has made waves in the offshore industry since its inception just over a year ago. Not long when you consider what it has achieved and the relationships it has formed.

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Registered in the Cayman Islands, Blue Ocean Drilling set up its US Company with its Executive Management team based in Houston, Texas shortly afterwards, with a business development office now in the UAE.

The company’s core business - to provide high specification deepwater jack-up rigs to the global offshore upstream marketplace – has a strong client focus approach, one which has been instrumental in the success it has already shared since

Blue Ocean Drilling inception. Its mission is on delivering and ensuring safe, environmentally focused operations to its clients, upon which Blue Ocean Drilling is looking to grow its fleet of offshore drilling rigs.

PROVEN DESIGN - PROVEN EQUIPMENT With numerous contracts underway and options for more in the pipeline, Blue Ocean Drilling remains dedicated to both the management and operation of growing its fleet for the offshore industry.

Due to receive its first jack-up rig early next year, Chairman, President and CEO, Dr. Yuanhui Sun, explains the importance of timing and location, especially for a start-up company like Blue Ocean Drilling: “We are contracted for delivery in the second Quarter 2016, with the subsequent three units coming out every six months thereafter. We have targeted certain markets based

upon internal Company strategies and criteria, but we also recognize we are a start-up company and with that will look at every opportunity wherein it could afford us the opportunity to contract our unit(s) in advance of their delivery from the shipyard.”

Helping to place Blue Ocean Drilling in a reputable position, the company entered into an agreement with Shanghai Waigaoqiao Shipyard (SWS) in China, for the construction of its new fleet of four jack-up rigs for the offshore industry.

Founded in 1999, SWS is located along the mouth of Yangtze River and is a wholly owned subsidiary of China CSSC Holding Ltd. Covering a huge area of five million square meters with waterfronts of four kilometers in total, the SWS facility contains four outfitting quays, two dry-docks, three 600-ton gantry cranes, one 800-ton gantry crane, seven blasting workshops and nine

painting workshops, all within its yard in China.

With such an impressive location and extensive facilities at its yard, Dr. Sun explains why Blue Ocean Drilling decided on SWS as its contractor of choice for this project: “The company did a thorough review of the shipyards of China that have experience in the offshore rig building sector and the selection of SWS was a result of this survey and review process. SWS’ commitment to state of the art facilities, extensive engineering department, commitment to use of automation in many of the critical areas of the steel work, which contributes to highly accurate and consistent components; all had a part to play in our decision to build all the rigs at SWS.” Practising with an industry recognized design, the four Gusto MSC jack-up rigs (two CJ 46 and two CJ 50 units), will be fitted with

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proven equipment from an industryleading manufacturer and based on years of offshore operating experience. EVP Operations, Tony Beebe, with the support of Blue Ocean Drilling’s engineering team, has included improvements for operating efficiency to ensure the ever growing and complex well designs and needs of the international offshore market are met to the highest standards.

Equipped with NOV Drilling, Well Control and Mud Systems, the jack-up rigs will also come equipped with Caterpillar power systems.

The initial two units will be delivered with accommodation providing for 120 people with the third and fourth units providing for a capacity of 150 persons on board.

The deep-water jack-up rigs will be capable of drilling to 30,000ft well depth and can operate in water depths of up to 375ft on the CJ 46 design and 400ft on the CJ 50 design in harsh environment settings. In May last year, the keel

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laying ceremony for the Blue Ocean I jackup-rig was conducted at the Shanghai Waigaoqiao Shipyard in China with the second unit’s keel laying for Blue Ocean II taking place in October.

Already working on innovative and industry leading designs, Blue Ocean Drilling is now looking ahead to further gain opportunities and use of strategic decision making to build its rig fleet over the coming years: “Right now our focus is on delivery of highly efficient, high specification drilling units utilizing industry leading designed rigs (Gusto MSC) with industry leading equipment (NOV drilling packages and Cat Power Systems) on time and on budget; but we do recognize the unique opportunities that the current markets present and with our stakeholders will look at opportunities that can generate added value to our strategic vision of the Company.

“Our aim is to use efficiency and a sharp attention to meeting our

client’s needs to assist them in being a better Operator on their respective projects,” explains Dr. Sun.

INVALUABLE EXPERIENCE A highly esteemed member of China National ‘Recruitment Program of Global Experts (1000 plan)’, Dr Yuanhui Sun, Ph.D., P.E., has over 26 years of invaluable experience with the energy sector with a special focus on the offshore sector.

Prior to joining Blue Ocean Drilling, Dr Sun worked for Noble Drilling Corporation, upholding various positions including; Director of Business Development-Asian Operations, Chief Representative in the greater China region and Principal Engineer in addition to various technical and management positions for the company, including a major role in deep-water semisubmersible conversions and new build deep-water drilling unit projects.

Dr. Sun’s range of experience spans yet further, serving as

Blue Ocean Drilling

The relationship between GustoMSC and Blue Ocean Drilling dates back into 2013 when Blue Ocean Drilling first contacted GustoMSC on its deepwater jackup rig design. In fact, Blue Ocean Drilling Limited’s utilized the plan to construct two GustoMSC CJ46-X100- D, XY cantilevered jack-ups to provide drilling services for the offshore oil & gas industry. Our cooperation in the customization of the design to Blue Ocean Drilling requirements resulted in the Blue Ocean I and II, presently under construction at Shanghai Waigaoqiao Shipbuilding in Shanghai, China.

These two 375ft water-depth drilling units are on schedule for delivery in 2016. In addition to the contracting of these two jack-ups, options were extended for Blue Ocean Drilling’s fleet expansion based on the GustoMSC design CJ50-X120-G, which is a larger and greater water depth capability jackup with modification to expand the accommodation package for 150 persons. The first of these options for two GustoMSC CJ50-X120-G XY cantilevered jackups was exercised in September 2014, with these units scheduled to deliver starting in the first half of 2017, with the possibility of more to come.

Blue Ocean Drilling recognized the benefits of the GustoMSC designed jackups, and look to provide those benefits to oil & gas companies. We were proud to be the designer they selected with which to enter the offshore jackup drilling market.

Our successful cooperation continues as we work on the customization of additional designs for future projects. GustoMSC is looking forward to working with Blue Ocean Drilling Limited on their continued expansion into the offshore drilling jackup market.

CANTILEVER DRILLING JACK-UP

CJ-50

HIGH DRILLING EFFICIENCY & LARGE ENVIRONMENTAL LOADING

GustoMSC is an independent, world renowned and leading design and engineering company in the offshore energy market. We serve the offshore industry by providing best-in-class solutions for mobile offshore units.

Visit our website to learn more about our CJ series: www.gustomsc.com uptime.gustomsc.com

THE PIONEERS OF OFFSHORE ENGINEERING

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General Manager of TSC Offshore Corporation, VP and Chief Technology Officer of TSC Group Holdings and President of the TSC Group Offshore Engineering Research Institute in China.

A registered Professional Engineer in the state of Texas, Dr. Sun obtained his Ph.D. and M.S. in Civil Engineering from Rice University and holds a B.S. in Engineering Mechanics from Tsinghua University in Beijing, where he spent three years as an assistant professor.

A SUCCESSFUL FIRST YEAR They say that the first few years of a new business are the hardest, especially given the competitive nature of the offshore industry, but Blue Ocean Drilling recognises these challenges and has found ways in which to avert and overcome them, all with a firm focus on the client’s needs in delivering an efficient and cost-effective service.

“We are focusing our goals on the alignment with our client’s goals.

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Being all about the customer’s total daily spread costs and how we can conduct our business to help them to lower these costs; delivering more revenue efficiency for each dollar spent.

“We recognize we have a stiff challenge ahead of us,” Dr. Sun explains, “but we look to provide assets that we have taken steps to deliver off-line operating and efficiency tools that we will look to work in concert with our clients to lower their Total Daily Spread Costs, helping them to deliver more cost efficient projects and value to their shareholders.”

Although it seems strange to look ahead to the future for a company that still has so much to focus on at present, Blue Ocean Drilling is in no doubt what the focus will be for the foreseeable future at least: “Our focus in the next two to three years is to bring our rigs out of the shipyard on time and on budget using a rigorous QA/QC oversight

of the shipyard’s construction process to ensure that the rigs are able to perform at a high level of efficiency from the start to meet the expectations of our clients.

“In addition we shall be focused on establishing and implementing our management systems and recruitment of key staff and rig based positions so that we are able to put them through the extensive training and certification programs that Blue Ocean Drilling will have for all of its senior and key junior staff (both onshore and rig based staffing).

“Each day we strive to find ways to make ourselves more effective, efficient while being less intrusive on the environment. Our focus on greener business is in line with the growing issues and we feel like we shall be well positioned to comply with these expanding guidelines, which we trust will be aligned with the goals and standards of our future clients,” concludes Dr Sun

Blue Ocean Drilling

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