Marco Polo Marine expands into jack - up rig market with high - specification order with PPL Shipyard
Singapore Exchange Mainboard - listed Marco Polo Marine Ltdtogether with its subsidiaries, a growing reputable regional integrated marine logistic group, announces that Marco Polo Drilling (I) Pte. Ltd., an indirect wholly - owned subsidiary of the company, had entered into an agreement with PPL Shipyard Pte Ltd , a subsidiary of Sembcorp Marine Limited, to construct a high - specification jack - up rig with a contract value of US$214.3 million for delivery slated in the fourth quarter of 2015 , with options to be exercised at the company’s discretion to construct another two more units for delivery in the third quarter of 2016 and the first quarter of 2017 respectively, the company said in its press release.
The high - specification jack - up rigs will be constructed based on PPL Shipyard’s proprietary Pacific Class 400 des ign which is capable of operating in waters of up to 400 feet and drilling high pressure and high temperature wells to depths of up to 30,000 feet. Incorporating advanced drilling equipment for improved drilling efficiency with 1.5 million pound of static hook load capacity , offline handling features and simultaneous operations support, Pacific Class 400 is capable of jacking at full pre load. It will also be equipped with full catering facilities and amenities which can accommodate up to 150 people on board in one - man and two - man cabins.
MARCO POLO MARINE LTD (A Member of Marco Polo Marine Group of Companies) Mr Sean Lee Yun Feng , Group CEO , remarked that : “ Th e signing of the agreement with PPL Shipyard is an epochal moment as it marks the start of a significant leap forward in terms of our operations and service offerings . Together with the grant of the two option units, we are delighted to work together with PPL Shipyard as it is one of the most highly regarded ship yards globally . We are confident of the on - time and quality delivery of high specification rigs from PPL Shipyard backed by its strong track record. The Group’s entry into this business segment coupled with the expected delivery of the Rig in fourth quarter of 2015 is timely in view of the favourable demand - supply dynamics. Against a backdrop of stable oil prices, demand for jack - up rigs is growing as governments encourage offshore oil and gas exploration and production with enhanced urgencies in the region . Currently, almost half of the existing global fleet is more than 30 years old by our reckoning. This means that these older generation rigs , inhibited by age and obsolescence, would require significant renewals which would bolster demand for newer generation high - specification rigs in the foreseeable future . It is our intention that we establish this new aspe ct of rig ownership and chartering business as a core division. We look forward to timely delivery of the R ig and the commencement of operations so as to generate a stable and growing recurring income for the Group.”
Mr Wong Teck Cheong, Managing Direc tor of PPL Shipyard Pte Ltd, commented, “We are honoured that Marco Polo Marine has chosen and entrusted PPL Shipyard with the construction of its maiden offshore drilling rig. The jack - up rig order signifies the owner’s confidence in the jack - up rig market and their trust in our proven rig design and ability to deliver quality rigs on schedule and within budget. We have secured a total of 44 orders for the Pacific Class design jack ups since 2004, wi th 35 units delivered and in operation. Our proprietary ownership of the Pacific Class design, offers us the flexibility.
