Singapore's Sembcorp Wins FPSO Construction Contracts worth $674M

Singapore's Sembcorp Marine – the world's second-largest oil rig builder – said Wednesday that it has won a contract worth $674 million from to carry out work for two floating, production, storage and offloading vessels (FPSOs).

The contract was awarded by Tupi B.V, a consortium owned by majority shareholder Petrobras Netherlands B.V., together with BG Overseas Holdings and Galp Energia E&P B.V.

A Sembcorp subsidiary will build a total of eight modules and module integration works for the FPSOs P-68 and P-71. The two vessels are expected to be completed in 60 months and they will be deployed in the Tupi field offshore Brazil.

Commenting on Sembcorp Marine's announcement on Wednesday, Maybank Kim Eng Analyst Yeak Chee Keong told Rigzone that it "validates his view that offshore activities will continue to be strong and that more contract wins will be forthcoming for Sembcorp Marine."

As of August 22, 2012, Sembcorp Marine had already surpassed its record-high of $4.6 billion (SGD 5.7 billion) worth of orders from fiscal year 2008, securing $6.5 billion (SGD 8.1 billion) in offshore contracts. 

Yeak believes that the company will be able to end off the 2012 fiscal year with $8.8 billion (SGD 11 billion) worth of rig orders. 



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