The Construction Contract is the second option rig that Jurong Shipyard granted to Petrojack ASA in December 2004 and which the latter has now decided to exercise. The contract takes effect in August 2005.
Construction of the jack-up rig is expected to commence in the fourth quarter of 2005 with delivery scheduled in the fourth quarter of 2008.
The Baker Marine Pacific Class ("BMC Pacific") 375 Deep Drilling Offshore Jack- up Rig is a proprietary design of SembCorp Marine' subsidiary, PPL Shipyard Ltd. The jackup rig, to be named Petrojack III will be equipped with a drilling package that will enable it to drill high pressure and high temperature wells at 30,000 feet while operating in 375 feet of water. It has accommodation for 120 men. Petrojack III will be SembCorp Marine's tenth jackup rig on order.
Mr. Don Lee, Senior General Manager of Offshore Division said "Petrojack III will be the third jackup rig on order by Petrojack ASA. The jackup rig will be identical to the other two jack-up rigs currently under construction in Jurong Shipyard. This is an endorsement of the confidence that our client has in our ability and capabilities to construct the jackups."
Mr. Berge Gerdt Larsen, owner and board member of Petrojack ASA said "The Board of Petrojack ASA is very pleased with the relationship and co-operation extended by Jurong Shipyard and its parent SembCorp Marine. With the robust offshore oil and gas market, we are confident that these three premium jack-up rigs will enhance our ability to serve our customers."
Total contracts secured for 2005 to-date stand at S$3.1 billion with deliveries and completion till first half 2009. Total outstanding order book as at date of 1Q 2005 results announcement dated April 27, 2005 stood at S$3.36 billion.
Barring unforeseen circumstances, SembCorp Marine expects a positive contribution to its earnings from the contract. However, this contract is not expected to have any material impact on the net tangible assets and earnings per share of SembCorp Marine for the year ending December 31, 2005.
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