PPL Shipyard Secures US$130 Million Rig Building Contract From Japan Drilling Co., Ltd
SembCorp Marine is pleased to announce that its subsidiary, PPL Shipyard has secured a rig building contract worth US$130 million from Japan Drilling Co., Ltd (JDC) for the construction of a Baker Marine Pacific Class 375 Deep Drilling Offshore Jack-up Rig.
Construction of the jack-up rig is expected to commence in the third quarter of 2005 with delivery scheduled in the first quarter of 2008.
The Baker Marine Pacific Class (“BMC Pacific”) 375 Deep Drilling Offshore Jack-Up Rig is a proprietary design developed and owned by Baker Marine Pte Ltd, a wholly owned subsidiary of PPL Shipyard. The jack-up rig will be equipped with a drilling package that will enable it to drill high pressure and high temperature wells at 30,000 feet whilst operating 375 feet of water. It has accommodation for 120 men.
Mr Ong Tian Khiam, Managing Director of PPL Shipyard said “We are pleased that JDC has chosen to place an order for our BMC Pacific Class 375 Deep Drilling Offshore Jack-up design and opted to construct the jack-up rig with PPL Shipyard. JDC is a reputable drilling contractor based in Japan. The Company operates 2 jack-ups and 2 semi-submersibles and has more than 30 years wide-ranging drilling experience as a quality drilling contractor with an experienced and well trained workforce.”
“We look forward to working with a reputable international drilling contractor. This is the ninth jack-up rig on order to-date.”
PPL Shipyard is a rig-building yard with proven track record in the building and servicing of jack-up and semi-submersible rigs. To-date PPL Shipyard has built 26 jack-ups and 4 semi-submersibles, including two deepwater jack-up drilling rigs for Global SantaFe International.
JDC was established in 1968 as a sole drilling contractor in Japan and has expanded its drilling operations for oil and natural gas in a wide variety of offshore markets ranging from Asia and Oceania to the Middle East and West Africa. In addition to serving its customers as an international drilling contractor, JDC also provides engineering services related to research and development in oil & gas drilling/exploration as well as methane hydrate development.
Total contracts secured for 2005 to-date stands at S$1.61 billion with deliveries and completion till 2008.
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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