Published July 3, 2009

SembMarine bags another rig contract

The US$237m deal for a rig is second from SeaDragon Offshore since April

By VINCENT WEE

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SEMBCORP Marine subsidiary Jurong Shipyard has secured a second contract to complete a semi-submersible rig for SeaDragon Offshore unit Oban B. The contract is worth US$237.3 million, excluding owner-supplied equipment.

Top job: Jurong Shipyard will turn this hull, built in a Russian yard, into one of the world's most advanced harsh-environment ultra-deepwater semi-submersible rigs

SembMarine secured a US$247 million contract for a similar rig in April.

'We thank SeaDragon again for its trust and commitment to work with Jurong after the first contract was signed in April,' said Jurong Shipyard's offshore division senior general manager Don Lee.

The first unit is a fast-track job scheduled for delivery by the end of next year, as it was signed up for a five-year charter with Mexico's Pemex.

The second rig does not have a charter secured yet. But reports last year suggested there may be parties interested in buying it from SeaDragon.

The six-column bare-deck hull, built in a Russian yard, arrived early last month. Jurong will turn it into one of the world's most advanced harsh-environment ultra-deepwater semis.

The rig, scheduled for delivery by end-June 2011, will be able to operate in water up to 10,000 feet, with a maximum drilling depth of 30,000 feet. Its ability to operate in all conditions will give it multi-region flexibility to operate worldwide.

'We are delighted to be working with the world-class team at Jurong on this second project, which we are confident will result in a first-class asset for charter in 2011,' said Oban B's technical director George Sutherland.

Jurong's Mr Lee said: 'These two state-of-the-art semi-submersible rigs will complement the range of semi-submersibles that Jurong is building and demonstrates our versatility in undertaking projects with diverse complexities.'

'We are pleased that, despite challenges due to the economic downturn and the credit crunch, our order book continues to strengthen,' he added.

SembMarine expects positive contributions to earnings from the latest contract for FY 2010 and FY 2011.

The rig builder's shares closed four cents lower at $2.71 yesterday.