Sembcorp Marine Subsidiary Jurong Shipyard Secures US$696 Million Libra FPSO Conversion Contract
Singapore, October 13, 2014: Sembcorp Marine is pleased to announce that its wholly-owned subsidiary Jurong Shipyard Pte Ltd has secured a US$696 million contract to convert a shuttle tanker into a floating, production, storage and offloading (FPSO) vessel for OOGTK Libra GmbH & Co KG, a joint venture between Brazil’s Odebrecht Oil & Gas and Teekay Offshore.
The contract involves the conversion of the Navion Norvegia shuttle tanker to an FPSO that includes detailed engineering, installation and integration of topside modules, installation of external turret and power generation, accommodation upgrading as well as extensive piping and electrical cabling works.
Scheduled for completion in the third quarter of 2016, the FPSO will have the capacity to produce 50,000 barrels of oil per day and 4 million cubic metres of natural gas per day, and is expected to be chartered to Petrobras for work on the Libra field in the ultra-deepwater section of Brazil’s Santos Basin.
Operating as an early well-test unit, the FPSO will be on a 12-year charter once it begins its contract in late 2016.
Mr William Gu, General Manager of Jurong Shipyard’s Offshore Division, said: “We are pleased that Odebrecht Oil & Gas and Teekay have chosen Jurong Shipyard as their strategic partner. The conversion work will be done at our Sembmarine Integrated Yard @ Tuas which will soon commence work on its first FPSO conversion project. We would like to thank Teekay and Odebrecht Oil & Gas for their trust and confidence in Jurong and our new state-of-the-art facilities and capabilities.”
Mr Jorge Luiz Mitidieri, Vice President of Odebrecht Oil & Gas said: “Petrobras decision to appoint our joint venture with Teekay Offshore as the leading consortium to develop the Libra field reaffirms the longstanding relationship and trust developed throughout the last years with Petrobras. Our proven track record in the operation of offshore oil & gas assets is key to the success of the project and we are happy to select Jurong Shipyard and the new Tuas facility as the choice partner and location for the job.”
Mr Peter Evensen, Chief Executive Officer of Teekay Offshore said: “We are happy to be working with both Odebrecht Oil & Gas and Jurong Shipyard on the Libra FPSO conversion project. In fact, this will be our second FPSO project for our joint venture with Odebrecht Oil & Gas which underlines the success of our partnership over the years. We are pleased to be at the forefront of this new phase of Petrobras’ development into deeper and more challenging waters, providing the necessary skills, tools and the best solutions to Petrobras for the tasks ahead.”
Petrobras had nominated Teekay Offshore and Odebrecht Oil & Gas’s 50/50 joint venture as the lead commercial bidder on the Libra project. The FPSO unit is expected to be owned and operated by the joint venture company and will service the Libra pre-salt field in the Santos Basin offshore Brazil, which is expected to start operations in late 2016.
The block covers approximately 1,550 square kilometres in water depths of around 2,000 meters (6,500 feet). The reservoir depth is around 3,500 meters below the sea floor (11,500 feet). Brazil’s ANP has estimated that total gross peak oil production could reach 1.4 million barrels per day.
The 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, 2014. Including the above mentioned contract, Sembcorp Marine’s new contracts secured year-to-date stands at S$3.7 billion.
About Odebrecht Oil and Gas
Odebrecht Oil & Gas provides integrated, customised solutions for the upstream oil industry in Brazil and around the world. The Group serves its customers throughout their business cycle from design engineering, project management, and integrated service delivery to offshore drilling rigs and production platforms including the new challenges in deep water and the pre-salt. Odebrecht Oil & Gas focuses on creating value for Customers and Shareholders, Business Excellence and Sustainability.
Its performance stands out not only for its diversity, but also for its commitment to invest in ongoing improvements within a framework of sustainable development. By prioritizing the use of state-of-the-art technologies, it ensures greater safety in its operations. Please see www.odebrechtoilgas.com for more details.
About Teekay Offshore
Teekay Offshore Partners L.P. is an international provider of marine transportation, oil production and storage services to the offshore oil industry focusing on the fast- growing, deepwater offshore oil regions of the North Sea and Brazil. Teekay Offshore owns interests in shuttle tankers, floating production, storage and offloading (FPSO) units, floating storage and offtake (FSO) units and conventional oil tankers. A majority of Teekay Offshore’s fleet trades on long-term, stable contracts and it is structured as a publicly-traded master limited partnership. Please see www.teekayoffshore.com for more details.
About Sembcorp Marine
Sembcorp Marine is a leading global marine and offshore engineering group with over 50 years of experience and proven capabilities in repair, specialised shipbuilding, building of high-specification jack-up rigs, fast-track construction of ultra-deepwater semi-submersible rigs, conversion of floating production and storage facilities as well as the engineering and construction of offshore platforms.
Headquartered in Singapore, Sembcorp Marine has a network of six shipyards in Singapore – Jurong Shipyard, Sembawang Shipyard, SMOE, PPL Shipyard, Jurong SML and Sembmarine Integrated Yard @ Tuas. The 73.3-hectare Sembmarine Integrated Yard @ Tuas Phase I facility commenced operations in August 2013. The Group’s strategic presence spans Indonesia, China, India, United Kingdom and Brazil.
Jurong Shipyard, a fully-owned subsidiary of Sembcorp Marine, is a leading shipyard offering integrated services and customised solutions in repairs & rig upgradings, ship conversion, rig building and offshore engineering to a world-wide clientele. Apart from its proven track record in building a diverse range of mobile offshore rigs from shallow to deepwater and harsh environment, Jurong Shipyard is also a global leader in the EPC conversion of tankers to floating production storage and offloading units (FPSOs), floating storage and offloading vessels (FSOs) and floating production units (FPUs).
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