Sembcorp Marine’s subsidiary PPL Shipyard has secured a contract to build a jack-up drilling rig from BOT Lease Co., Ltd (BOTL), a leasing company of The Bank of Tokyo-Mitsubishi UFJ which is under the umbrella of Mitsubishi UFJ Financial Group. The contract price is US$220.5 million (excluding cost of BOTL’s project management team and pre-operations cost).
Scheduled for delivery at end January 2015, the new rig will be built based on PPL Shipyard’s established proprietary Pacific Class 400 design. This design represents the latest generation of high-specification jack-up rigs that are capable of operating in deeper waters of 400 feet and drilling high pressure and high temperature wells to depths of 30,000 feet. The rig will be designed with the latest drilling equipment for improved drilling efficiencies along with offline handling features and simultaneous operations support. It is equipped with increased accommodation with full catering and amenities for 150 persons.
Japan Drilling Co., Ltd will be the co-ordinator in the project and will provide the project management team during the rig construction phase.
Mr Douglas Tan, Managing Director of PPL Shipyard said “ We are pleased that BOT Lease Co., Ltd in collaboration with Japan Drilling Co., Ltd have chosen our latest proprietary Pacific Class 400 series, a proven design that has been well-accepted by the industry. Since the launch of this Pacific Class 400 series, twelve such jack-ups have been ordered with six units delivered and operating in West Africa, Gulf of Thailand, Qatar and Middle East. The jack-up rig order is a reflection of the optimism that the owner has in the jack-up rig market and an endorsement of PPL Shipyard’s design capabilities, efficient project execution, and track record for quality and timely deliveries. ”
Barring unforeseen circumstances, Sembcorp Marine expects a positive contribution to its earnings from the contract. However, the contract is not expected to have any material impact on the consolidated net tangible assets per share of Sembcorp Marine for the year ending December 31, 2013.
[mappress] Sembcorp Marine, May 30, 2013