Sembcorp Marine Strikes S$351 Million FPSO Conversion Deal

The Jurong Shipyard will convert an oil tanker to a Floating Production Storage and Offloading vessel (FPSO) for Teekay Petrojarl Production AS.

In a statement, Sembcorp Marine said the conversion contract for the MT Arc II (ex MT Arc), an Aframax tanker, includes detailed engineering, installation and integration of 16 topside modules, installation of spread mooring and power generation systems, accommodation upgrading, and extensive piping and electrical cabling works.

The vessel, which will be renamed FPSO Petrojarl Cidade de Itajai, is scheduled for delivery in the 1st quarter of 2012.

“The award of this key contract is an affirmation of Jurong Shipyard’s proven expertise in offshore conversion, our strong execution capabilities as well as our high standards of workplace safety and health. We would like to thank Teekay for placing their confidence in us and we look forward to a fruitful partnership ahead,” Mr Don Lee, Senior General Manager of JSPL's Offshore Division said.

Mr Peter Lytzen, President & CEO of Teekay Petrojarl Production AS said, “We are delighted to have signed our first FPSO contract with Jurong Shipyard and see this as the start of long and mutually rewarding relationship. JSPL has built a reputation as a 1st class offshore construction yard with a strong track record in delivering successful turnkey projects. We are very confident JSPL will deliver to Teekay a quality product that meets our expectations in every respect and we’re looking forward to taking the FPSO into operation.”