Sembcorp Marine Awarded $792.5M Drillship Contract

Sembcorp Marine's wholly-owned Brazilian shipyard Estaleiro Jurong Aracruz has secured a contract worth approximately $792.5 million from Guarapari Drilling BV, Netherlands, a subsidiary of Sete Brasil Participacões S.A. (Sete Brasil), for the design and construction of a drillship based on Jurong Shipyard's proprietary Jurong Espadon drillship design.

The Jurong Espadon drillship represents the next generation of high-specification drillships with advanced capabilities for operational efficiency and ultra-deepwater operations worldwide. The drillship will be equipped with state-of-the-art drilling facilities, a larger deck area with a 40-meter-wide main deck, efficient deck arrangement and a large moon pool for enhanced drilling operations as well as DP-3 (Dynamic Positioning class 3) capabilities, superior motion features and Azimuth thrusters for improved operability. It is capable of operating at 10,000 feet water depth and drilling to depths of 40,000 feet, with accommodation facilities to house a crew of 180 personnel.

Scheduled for delivery no later than 2Q 2015, the ultra-deepwater drillship will be among a series of drillships to be built in Brazil to cater to the recent oil and gas discoveries in the offshore giant pre-salt fields.

Mr. Wong Weng Sun, President and CEO of Sembcorp Marine said, "This is a very significant milestone as this order not only represents the first drillship that our group is building for Brazil but it is also the first project secured by our new shipyard in Aracruz. The fact that Sete Brasil has chosen our design is a testament of the drillship's high-specification capabilities and innovative design as compared to its peers. We believe this order will be the first of many orders in Sete Brasil's ambitious drillship expansion program to develop the giant Brazilian pre-salt oil fields."

Barring unforeseen circumstances, Sembcorp Marine expects a positive contribution to its earnings from the contract. However, the contract is not expected to have any material impact on the consolidated net tangible assets per share of Sembcorp Marine for the year ending December 31, 2012.

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