UK Company Wins Mexican Gulf Contract

UK-based oil services company SeaDragon has won a $958m contract from Mexico's state-owned petroleum company Petroleos Mexicanos to build a vessel capable of drilling for oil and natural gas in up to 10,000ft of water.

The semi-submersible rig, which is used to drill in very deep waters, is expected to be in the Gulf of Mexico by January 2010 and will start drilling in 5,000ft of water.

SeaDragon received its first firm order from Pemex, the Mexican state oil company to use the first of three planned rigs for the next five years.

The company, which is backed by a group of companies and private investors, is considered to be instrumental in bringing the construction of deep-sea oil exploration rigs back to Britain after almost a generation.