Sembcorp Marine's unit to build modules for 2 FPSOs
Sembcorp Marine’s subsidiary Jurong do Brasil Prestacao de Services Ltda (JDB) has secured a contract worth US$674 million for the construction of a total of 8 modules and module integration works for 2 Floating Production Storage and Offloading vessels (FPSO) P-68 and P-71 from Tupi B.V., a consortium owned by majority shareholder Petrobras Netherlands B.V., together with BG Overseas Holdings Ltd and Galp Energia E&P B.V., the Group's press release said.
As part of the agreement, Tupi B.V. has a similar contract option to construct 4 modules and modules integration for a FPSO to be exercised within 18 months of the contract signing.
Under the contract, the FPSOs P-68 and P-71 will have identical work scopes, comprising the fabrication of 4 modules for each FPSO and module integration works. Scheduled for completion in 60 months, the P-68 and P-71 will be deployed in the Tupi field offshore Brazil. Each FPSO will have a production capacity of 150,000 barrels of oil per day (bopd).
The fabrication of the modules and the integration of the FPSOs will be carried out in Sembcorp Marine’s wholly-owned Brazilian subsidiary Estaleiro Jurong Aracruz.
Mr Martin Cheah, President of Jurong do Brasil and Country Head in charge of Latin America said “We are pleased to be awarded this contract and to support Petrobras and its partners to grow their FPSO fleet in Brazil. Jurong Shipyard, the parent company of Jurong do Brasil, is a key player in the Brazilian Oil and Gas market and has to-date delivered 12 FPSO/FSO/FPU projects to Petrobras. Jurong is proud to be recognised by Petrobras as their key partner and to be entrusted the fabrication and integration of these high-specification FPSOs which will operate in the highly challenging deep pre-salt fields, even though our shipyard Estaleiro Jurong Aracruz is still in its early phase of construction.”
The above contract is not expected to have any material impact on the consolidated net tangible assets and earnings per share of Sembcorp Marine for the year ending December 31, 2012.
About Sembcorp Marine and its subsidiaries
Sembcorp Marine is a leading global marine and offshore engineering group with 49 years of experience and proven capabilities in the building of high-specification jackup rigs, the innovative fast-track construction of deep water and ultra-deepwater semi-submersible rigs as well as the EPC conversion of tankers to floating production storage and offloading vessels (FPSO), floating storage and offloading vessels (FPO) and floating production semi-submersible rig (FPU).
A key player in Brazil’s offshore oil & gas industry, Sembcorp Marine’s fully-owned subsidiary Jurong Shipyard has been serving the country’s exploration and production sector for more than two decades. The Group has to-date delivered a total of 19 oil & gas exploration, production and storage platforms for Brazilian oilfields.
Estaleiro Jurong Aracruz, Sembcorp Marine’s first overseas integrated New Yard Facility, is strategically located in the municipal of Aracruz in the state of Espirito Santo, Brazil. The wholly-owned locally incorporated 82.5-hectare new Brazilian shipyard, which broke ground in December 2011, is scheduled for full completion at end 2014. Planned shipyard facilities include a 380m x 120m drydock, a 1km berthing quay and ancillary piping facilities and steel fabrication workshops. On completion, the shipyard will have capabilities to undertake the construction of drillships, semi-submersible and jack-up rigs, platforms and supply vessels as well as FPSO integration and topside modules fabrication, in addition to traditional services in drilling rig repairs, ship repairs and modification and upgrade works.
Jurong do Brasil Prestacao de Services Ltda, incorporated in Brazil, is a subsidiary of Jurong Shipyard through Jurong Netherlands B.V. JDB’s principle activities will be the provision of marine and offshore services in Brazil, including the fabrication of topside modules and the integration FPSOs.
