China Rongsheng Wins Offshore Rig Contracts - Source

China Rongsheng Heavy Industries Group Holdings Ltd, the largest shipbuilder listed in Hong Kong, has won offshore rig contracts, marking its entry into the rig-building sector, a source with direct knowledge of the deal said on Friday.

Barclays Research estimated the market value of the two rigs at $300-400 million.

"The contracts, from an overseas company, have been finalised and will be effective by the end of the month," the source told Reuters, declining to give other details.

Upstream Online, an industry newspaper, said earlier this month that China Rongsheng had secured orders from Singapore-based PrimePoint Oil & Gas to build a semi-submersible barge rig and a tender barge rig for delivery in 22 and 24 months, respectively.

China Rongsheng officials declined to comment.

China's shipbuilding industry is experiencing a severe downturn due to a global shipping market slump and supply glut, analysts said.

New orders to Chinese shipyards tumbled 52 percent last year to 36.22 million deadweight tonnes, the China Association of National Shipbuilding Industry said. In January-February, new orders are down about 40 percent year on year.