Singapore-listed EMS Energy Limited (EMS or the Group) announced Tuesday that its wholly-owned subsidiary, EMS Energy Solutions Pte Ltd (EES) has secured from its major shareholder, Koastal Industries Pte Ltd (Koastal), a contract worth $36 million to build a Derrick Equipment Set (DES), complete with full drilling equipment, for an offshore tender assisted drilling rig, commonly known as tender rig, and expects to secure two more DES of similar value over the next few months.
EES will deliver the first DES for the tender rig, over 18 months to Koastal for a China state-owned Shipyard (Shipyard). The Project is the largest that EES has secured to date.
The first contract will potentially lead to two more contracts from Koastal at approximately the same value, for the supply and construction of like-sized DES.
If the latter two are confirmed, the total order size for EES from Koastal will amount to $108 million. Koastal, which provides engineering, procurement and construction management (EPCM) for offshore projects, has previously outsourced to EES major equipment supplies projects for Pipelay and Anchor Handling Tug Supply vessel EPCM projects that it had secured from other customers.
EES will manufacture and deliver the DES in accordance to the American Petroleum Institute (API) standard for offshore rigs. The tender rig with modular DES allows drilling to be carried out on a fixed wellhead platform without a permanently installed drilling package. It costs less than conventional drilling rigs and offers more flexibility. The tender is moored to the side of the platform before cranes lift the modular DES on to the platform where they are assembled.
As a DES builder and integrator, EES will be responsible for the turnkey project from design, fabrication, interconnection of hoses and electrical and communication cables to final commissioning.
EES plans to utilize drilling equipment from a world-class supplier for the DES. The DES is expected to weigh approximately 740 metric tons, with each module not exceeding 200 metric tons, optimized for fast and safe assembly offshore.
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