Sembcorp Marine arm inks US$434m construction deal

There'll be 2 jack-up rigs for Oro Negro.

According to a release, Sembcorp Marine’s subsidiary, PPL Shipyard has secured two turnkey contracts with a combined value of US$434 million for the construction of two units of jack-up rigs from Integradora de Servicios Petroleros Oro Negro, S.A.P.I. de C.V.

Scheduled for delivery in end 4th quarter 2013 and end 1st quarter 2014, the pair of high specifications and high performance deep drilling offshore jack-up rigs will be built based on PPL Shipyard’s proprietary design, the PPL Pacific Class 400. \

These new rigs will be capable of operating in deeper waters of 400 feet and equipped with the latest drilling equipment for improved drilling efficiencies with offline handling features and simultaneous operations support. It will be equipped to drill high pressure and high temperature wells to depths of 30,000 feet.

The rig is equipped with increased accommodation with full catering and amenities for 150 persons.

Mr Gonzalo Gil, Co-CEO of Oro Negro said “We are delighted to have PPL Shipyard as the builder of these two jack-up rigs given its long standing reputation in the design and construction of offshore rigs, especially jack-up rigs.

Our company was founded on the basis of capitalising on the promising future of the offshore market in Mexico. Once these jack-up rigs become operational, Oro Negro will become a leading player in premium jack-ups in the Mexican market.”

Mr Douglas Tan, Managing Director in PPL Shipyard said “We are honoured that Oro Negro have entrusted PPL Shipyard with the construction of two offshore drilling
units. The jack-up rig order is a reflection of the optimism that the owner has in the jack-up rig market and in particular our design and our ability to deliver on schedule
and within budget.”

Barring unforeseen circumstances, Sembcorp Marine expects a positive contribution to the earnings from the contract. However, the 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, 2012.