SembCorp Marine’s Subsidiary PPL Shipyard Secures A US$133.7 Million Rig Building Contract
Singapore, February 3, 2005 : PPL Shipyard, a subsidiary of SembCorp Marine has signed a rig building contract worth US$133.7 million with PT Apexindo Pratama Duta Tbk (“Apexindo”), the largest Indonesian oil & gas drilling company for the construction of a Baker Marine Pacific Class 375 Deep Drilling Offshore Jack Up Rig
The Baker Marine Pacific Class (“BMC Pacific”) 375 Deep Drilling Offshore Jack Up Rig is a proprietary design developed by Baker Marine Pte Ltd, a subsidiary of PPL Shipyard. Incorporated in the design of the rig is the Baker Marine Time Tested Proprietary Jacking System that could withstand storms without the use of a Rack Chock System. The jack-up rig is equipped to drill high pressure and high temperature wells of more than 25,000 feet and operating in 375 feet of water. It has accommodation for 120 men.
Construction of the jack-up rig is expected to commence in the first quarter of 2005 with delivery scheduled in January 2007.
Mr Hertriono Kartowisastro, President Director of Apexindo said “Apexindo has chosen PPL Shipyard to build its newest jack-up rig because of its long standing reputation in constructing offshore rigs, especially jack-up.”
“Apexindo realizes the promising future of offshore market, especially for jack-up rigs, in Indonesia, Southeast Asia, as well as in the Middle East. Therefore, we would like to enhance our competitive advantage by acquiring a new jack-up”
Mr Pierre Ducasse, COO of Apexindo said “Apexindo’s Rani Woro jack up, a Baker Marine 300 unit, with its outstanding performances and capabilities, was the determining factor for the decision to select the new BMC Pacific design to be built by PPL Shipyard as our final choice. The Baker Marine Pacific Class proven design associated with its latest technologies and modern drilling equipment will certainly enhance our capacity to serve the oil & gas industry.”
Mr T. K. Ong, Managing Director of PPL Shipyard said “We are pleased that Apexindo has selected the Baker Marine Pacific Class 375 Jack-Up Rig design. It is indeed an endorsement of the confidence in the design and capabilities of the Baker Marine Pacific Class 375 Jack-up rig. Since the launch of this new design in 2004, this is the fourth jack-up rig of such design on order. We expect more such orders for our design”
PPL Shipyard is a rig-building yard with proven track record in the building and servicing of jack-ups and semi-submersibles. To-date PPL Shipyard has built 26 jack-ups and 4 semi-submersibles, including two deepwater jack-up drilling rigs for GlobalSantaFe International.
PT Apexindo Pratama Duta Tbk is a subsidiary of PT Medco Energi International Tbk, a homegrown integrated energy company in Indonesia. Both companies are listed in the Jakarta Stock Exchange. PT Apexindo Pratama Duta Tbk owns and operates a fleet of rigs including one Baker Marine-designed Jack Up and several shallow water submersible swamp barge rigs.
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.
Revenue from the contract will be recognized according to SembCorp Marine’s revenue contribution policy based on the percentage of completion method measured by reference to the value of work performed relative to the total contract value over the duration of the contract.
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