PPL Secures 4th Jackup Rig Order Valued at US $198 Million

PPL Shipyard, a subsidiary of SembCorp Marine, has been awarded a contract by repeat customer, Offshore Group Corp to build a Baker Marine Pacific Class 375 (BMC Pacific 375) Deep Drilling Offshore Jack-up Rig valued at US$198 million (or approximately S$301 million).

This high-performance rig is the fourth jack-up rig that Offshore Group Corp has ordered from PPL Shipyard following the first unit in October 2006, second and third units in January and June 2007 respectively.

Construction of the jack-up rig is expected to commence in the third quarter of 2007 with delivery scheduled in December 2009.

The rig will be built based on PPL Shipyard’s proprietary BMC Pacific 375 Deep Drilling design and proprietary components. It will be equipped to drill high pressure and high temperature wells at 30,000 feet whilst operating in 375 feet of water. It will have accommodation with full catering and amenities for 120 persons.

Mr Tan Kim Yung, General Manager of Marketing in PPL Shipyard said "The BMC Pacific 375 Deep Drilling Jack-Up design is a proven design, well accepted by the industry and fetching one of the highest charter rates. Since its launch in 2004, a total of 20 jack-up rigs have been ordered based on this design. 6 units have been successfully delivered to the owners with another 14 units in various stages of construction with deliveries from 2007 to 2009."

Net order book to-date stands at S$8.6 billion with completion and deliveries till 2010. This includes new orders of S$4.8 billion secured in 2007 to-date.

PPL Shipyard is an integrated rig design and rig building yard with proven records in turnkey building and delivery of jack-up and semi-submersible To-date, the yard has built and delivered over 40 rigs of various designs specifications.

Barring unforeseen circumstances, SembCorp Marine expects contribution to its earnings from the contract. However, this contract expected to have any material impact on the net tangible assets and earnings share of SembCorp Marine for the year ending December 31, 2007.