TSC Group Holdings has exercised an option for the construction of one jack-up drilling rig via its subsidiary Alliance Offshore Drilling at CSSC Huangpu Wenchong Shipbuilding.

The option is attached to an earlier deal for one Zentech R-550D jack-up drilling rig currently under construction at CSSC Huangpu Longxue Shipyard, an affiliated company of Wenchong Shipbuilding.

The new rig is scheduled to be delivered from the Chinese shipyard within 26 months upon the contract coming into effect before the end of October 2014.

Financial details of the contract were not disclosed.

“A positive sustainable demand will continue for good quality and high specification rigs as older aging rigs are retired from active fleets and drilling requirements increase in deeper water depths,” Hong Kong-listed TSC commented.

“The rig is intended either for drilling operations to be undertaken directly by Alliance Offshore Drilling as a drilling contractor on completion of the rig or for sale to prospective customers who have expressed interest in the purchase of the second rig,” TSC added.