Asian Yards Adapt to Industry Downturn

Sembawang Shipyard, another Sembcorp Marine unit, secured a $41.4 million (SGD 56 million) floating storage and offloading (FSO) conversion deal in April from Teekay Offshore Partners L.P. for the Gina Krog field in the North Sea. Sembawang will begin conversion work on the shuttle tanker Randgrid in June and deliver the FSO to Teekay in May 2016.

Cosco clinched its first major offshore contract this year, when Cosco Dalian was awarded a $95 million floating production, storage and offloading (FPSO) conversion contract by MODEC Offshore Production Systems (Singapore) Pte Ltd. in April – the first FPSO contract won by the company since December 2012. In May, it secured a contract to build a tanker assist/emergency response/rescue/field support vessel for U.K.’s Sentinel Marine Ltd. for an undisclosed price at its Guangdong yard in China.

Non-Rig Builders Affected Too

The effects of reduced capital spending by petroleum companies extended beyond rig builders to regional yards that are involved in fabrication of offshore structures.

Malaysia Marine and Heavy Engineering Holdings Bhd (MHB), a yard that traditionally focuses on fabrication works for the offshore oil and gas industry, is extending its business into the onshore and downstream segments.

The firm, owned by MISC Berhad – a 62.44 percent subsidiary of Malaysia’s national oil company Petroliam Nasional Berhad (PETRONAS) – eyes a subcontractor role downstream in areas like piping for developments such as the $16 billion refinery and petrochemical integrated development (RAPID) project in Johor, Malaysia.

“It will not be as material as projects like Malikai tension leg platform (TLP) and SK316 wellhead platform (WHP) but during these tough times, the ability to sustain ourselves and to keep our workforce going is very important. We have 3,800 people working in the yard and we have quite a huge overhead we have to cater for,” MHB Chairman Nasarudin Md Idris said, as quoted May 26 in the local The Sun Daily.

“These sort of projects (Malikai TLP and SK316 WHP) do not come every day, sometimes they come in quite far in between,” he added.


View Full Article


Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.

Mohammad Ezazul Haque  |  June 08, 2015
Very good

Most Popular Articles