PPL Shipyard Exercises Right for Seadrill's West Elara Jackup
Sembcorp Marine's subsidiary, PPL Shipyard (PPL), has exercised its right to acquire the second unit of the jackup drilling rig West Elara from Seadrill Limited (Seadrill) based on mutually beneficial revised terms as agreed by all parties in January 2009.
West Elara is currently under construction in the shipyard and is built based on the proven PPL Pacific 375 Deep Drilling Jackup design. The rig is due for completion in September 2010.
There are buyers who are interested in the jackup rig. With this acquisition, PPL would have the flexibility to deal with the potential buyers. PPL will pay a sum of US $10.8 million for the acquisition. Further announcement will be made at the appropriate time when the transaction is done.
The first jackup unit, the West Leda, which PPL is currently constructing for Seadrill, is progressing on schedule with progressive payment received on time.
The above 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, 2009.
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