Marathon Manufacturing Adds $61 Million To Drilling Rig Backlog

Marathon Manufacturing Company, Houston, Texas, has announced that with firm construction contracts negotiated in August f o r four of its offshore jackup drilling rigs, a total of $61 million has been added to its marine construction backlog.

The contracts for Marathon jackup rigs are with the Penrod Drilling Company and Keydril Company, both Texas-based firms.

Prior to the four new contracts, Marathon's marine backlog was at $72.7 million and with the additional $61 million, the Marathon offshore drilling rig backlog is at $133.7 million. In addition, Marathon has two pending agreements totaling $29.3 million to cover the construction of two of its jackup drilling rigs. Contract signing is expected shortly. When these contracts are complete, the marine backlog will amount to $163 million.

Included in the $61 million are three offshore rigs being built for Penrod Drilling Company.

One unit will be a Marathon-class 116-C, a large cantilever-type jackup rig, and the second rig will be a Marathon-class 82-SD-C, a shallow-draft cantilever jackup rig. Both units will be built at Marathon's Vicksburg, Miss., yard, with deliveries scheduled for November 1978, and March 1979. The third Penrod unit will be a Marathon-class 116 to be built at the firm's Clydebank, Scotland, shipyard. It is scheduled for delivery in October 1978.

This unit utilizes the purchase option for a second rig Marathon granted the British National Oil Corporation when BNOC signed a speculative rig contract in April of this year. The speculative rig, also a Marathon-class 116, has been purchased by Penrod Drilling Company, and is scheduled for delivery from the Clydebank yard in June 1978.

A fourth contract has been signed with Keydril Company for a Marathon-class 116 rig to be built at the firm's Brownsville, Texas, shipyard. The rig has been designated the Key Galveston, and is scheduled for delivery in May 1978.

The recent strength of the offshore drilling rig construction market, especially for Marathontype rigs, leaves the company with one 1978 delivery position remaining in its Singapore yard for which construction could start immediately, and space in its other three yards for delivery positions in 1979, in which construction activity could start mid to late 1978.

Marathon Manufacturing Company is a multiproduct firm serving industries in marine construction and transportation, heavy equipment and steel products, as well as a group of diversified companies producing chemicals, batteries, consumer goods, and providing construction services.

Maritime Reporter Magazine, page 9, Sep 1977

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