SembCorp Marine’s PPL Shipyard Secures Another Rig Building Contract
PPL Shipyard, a subsidiary of SembCorp Marine has signed another rig building contract worth US$144 million with Awilco Offshore ASA for the construction of a Baker Marine Pacific Class 375 Deep Drilling Offshore Jack-Up Rig.
The Construction Contract is an option that PPL Shipyard granted to Awilco Offshore ASA and which the later has now decided to exercise. Construction of the jack-up is expected to commence in the third quarter of 2005 with delivery scheduled at the end of the fourth quarter of 2007.
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 dill high pressure and high temperature wells at 30,000 feet whilst operating in 375 feet of water. It has accommodation for 120 men.
Mr T. K. Ong, Managing Director of PPL Shipyard said “We are pleased that Awilco Offshore ASA has decided to exercise the option to build the third jack-up rig with us. This jack-up rig will be identical to the other two jack-up rigs currently under construction in PPL Shipyard. This is an endorsement of the confidence that our client has in the design and our ability and capabilities to construct the jack-ups that best meet their demanding requirements.”
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 rigs for Global SantaFe International.
Awilco Offshore ASA has a long tradition of 40 years experience in shipping and operating offshore rigs worldwide. Awilco Offshore now has five Ultra Premium Jack-Up drilling rigs under construction with options to build another three units. In addition, the company has two accommodation units currently working in the Norwegian sector of the North Sea.
Total contracts secured for 2005 to-date stand at S$4.2 billion.
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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