Malaysian Firm Sells Drill Rig for $223 million

Malaysian firm Coastal Contracts Bhd is selling a Jack-up drilling rig (JUDR) for 807 million ringgit ($223.6 million), the company said in its filing to the bourse on Wednesday.

The contract was signed through its subsidiary Thaumas Marine Pte Ltd and the JUDR is expected to be delivered in the third quarter of 2015. The firm did not say who the buyer was.

Coastal said its decision to sell the JUDR was to "reduce the company's exposure to a potential downturn in the drilling market".

It said it was also negotiating a drilling contract for another JUDR with potential charterers.

Reporting By Trinna Leong