Sembcorp Marine scores $900m Norwegian project

It's the firm's first big order win this year.

According to Nomura, SMOE, an offshore engineering and construction company and a subsidiary of Sembcorp Marine has secured a SGD 900mn (USD 727mn approx.) 

EPC (engineering, procurement, construction) contract to build an offshore platform integrated topside from Det norske oljeselskap ASA.

According to a 7th Feb 2013 article on Upstream Online, Aker Kvaerner had also bid for the contract.

Here's more from Nomura:

The topsides will be installed at a depth of 112metres for the Ivar Aasen development in the North Sea. Facilities on the 13,700-tonne topsides, which are integrated with a 70-men living quarters module cum helideck, will include modules for process, gas compression, separation, water injection, flare boom, metering and utilities.

According to Sembcorp Marine’s press release, construction is expected to commence in December 2013 and sail away has been scheduled for 2016.

First oil from the project is expected in 2016. The contract includes engineering, procurement and construction of the topside and SMOE will collaborate with its engineering partner Wood Group Mustang in executing this project.

Det norske oljeselskap ASA or Det norske is a Norwegian exploration and production company with assets mainly situated in the North sea. As per its website, the company participated in the giant discovery at Sverdrup and at Norwag in the Barents sea.

The company is the operator of the Ivar Aasen field in which Statoil and Bayengas also have a stake. According to a company press release, the project is estimated to hold reserves of 150mmbbls of oil equivalent and is situated west of the Johan Sverdrup-field in the Norwegian Continental Shelf, 180km west of Stavanger.

We had highlighted in our 9th January 2013 report titled Singapore O&M Radar – Offshore & Marine outlook for 2013 – II that continued offshore development and production will be a source of new orders in 2013.

Despite a slowdown in new order activity, we believe there are pockets of opportunity that should continue to witness robust activity and new orders. We remain bullish on new orders from semi-subs, new product categories such as accommodation semis and also FPSO/FLNG related orders.

The LOI from Det norske is the first significant new order win for Sembcorp Marine in the year. For 2013 we are building in new orders of SGD 6.5bn, which though lower vs 2012 is quite sizeable, in our view, given absence of Petrobras’ chunky orders.