Letter of Intent to Build an Ultradeepwater Semi-submersible Rig for Petromena Becomes Effective at US$422.7 Million
SembCorp Marine is pleased to announce that the Letter of Intent that was signed between its subsidiary, Jurong Shipyard Pte Ltd and PetroRig I/PetroMena ASA under management by Larsen Oil & Gas (LOG) to build a semi-submersible rig is now effective at a contract value of US$422.7 million.
The contract is signed with PetroRig I Pte Ltd, a company incorporated in Singapore and a wholly owned subsidiary of PetroMena ASA.
The contract value is US$22.7 million higher than the original announcement dated August 3, 2005 “Jurong Shipyard secures Letter of Intent to build an Ultradeepwater semi-submersible rig for PetroMena” in the region of US$400 million.
Under the contract, Jurong Shipyard will build the 6th generation ultra-deepwater semi-submersible drilling rig based on the Friede & Goldman Ex-D-design. The semi-submersible rig is capable of operating in challenging deepwater arena and is also engineered for stability and versatility with operational displacement of 43,400 metric tons at 17 metres draft and 46,750 metric tons at 20 meters draft.
The Construction Contract takes effect in November 2005 with delivery scheduled not later than January 2010.
Jurong Shipyard is a leading shipyard offering integrated solutions in ship repair, shipbuilding, offshore construction, rig building and offshore engineering. Apart from its proven track record in the building and servicing of jack-up and semisubmersible rigs, Jurong Shipyard is also a global leader in the EPC conversions of tankers to floating production, storage and offloading units (FPSOs) and floating storage tankers (FSOs).
Larsen Oil & Gas is a Norwegian company owned by Berge Gerdt Larsen. LOG is the Business Manager to Petrojack ASA and Petrolia Drilling ASA, a company listed on the Oslo Stock Exchange and a Drilling Contractor for SS Petrolia, a North Sea semi-submersible drilling rig. PetroMena ASA will be listed on the Oslo Stock Exchange in the 1st quarter of 2006 with LOG as the Business Manager. LOG is the largest industry shareholder in DNO ASA (The Norwegian Oil Company), a company listed on the Oslo Stock Exchange. Currently, Petrojack ASA has three jack-up drilling rigs under construction in Jurong Shipyard.
Barring unforeseen circumstances, SembCorp Marine expects a positive contribution to its earnings from the contract. However, this contract 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, 2005.
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