SembCorp Marine’s Subsidiary PPL Shipyard Secures Another Rig Building Contract Worth US$121 Million
Singapore, March 10, 2005 : PPL Shipyard, a subsidiary of SembCorp Marine has signed a rig building contract worth US$121 million with Wilsuperior Ltd, a subsidiary of Awilco Offshore ASA (AWIL) 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 in May 2004 and which the later has now decided to exercise. The contract takes effect in June 2005.
Construction of the jack-up rig is expected to commence in third quarter of 2005 with delivery scheduled in the second quarter of 2007.
The Baker Marine Pacific Class (“BMC Pacific”) 375 Deep Drilling Offshore Jack-Up Rig is a proprietary designed developed and owned by Baker Marine Pte Ltd, a wholly owned subsidiary of PPL Shipyard. The jack-up rig, to be named Wilsuperior, 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 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 second jack-up rig with us. Our confidence that more Baker Marine Pacific 375 Class jack-ups will be built is proving to be spot on. This is the sixth jack-up rig on order within a short span of one year since the launch of this design in early 2004.”
“Apexindo, Awilco Offshore ASA, Deep Drilling Invest and Petrojack ASA consider the BMC Pacific Class design a superior design that best meets their demanding performance requirements” added Mr Ong.
Mr C. Mørch, Managing Director of Wilhelmsen Marine Services AS said “Awilco Offshore ASA have chosen to exercise its first option under the contract with PPL Shipyard for the delivery of a Baker Marine Pacific Class 375, based on the excellent relationship established between our two companies during the construction of our first jack up unit to be delivered in the second quarter of 2006.”
Speaking of the market, Mr Mørch added “We see an interesting market for this type of drilling units and are confident that this addition to our fleet will enhance our abilities to provide first class drilling equipment to our international clients.”
PPL Shipyard, a subsidiary of SembCorp Marine, 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.
Wilsuperior Ltd, a company registered in Bermuda is a wholly owned subsidiary of Awilco Offshore ASA of Norway. Awilco Offshore ASA has a long tradition of 40 years experience in shipping and in owning and operating offshore rigs worldwide.
Total order book as at December 31, 2004 stood at S$2.3 billion. Total contracts secured for 2005 to-date stands at S$ 973 million.
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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