Newly-minted Tuas integrated yard unlocks greater potential for SembMarine

Larger and grander projects are coming its way.

Then new yard of the marine arm of Sembcorp has been quick to deliver for the company, as SembMarine has recently inked a new FSO building contract.

According to a report by OCBC, SembMarine will design and build a new floating, storage and offloading vessel for a subsidiary of MODEC Inc. The schedule for delivery is in 1Q18.

“The FSO unit will be SMM’s first FSO newbuilding secured on a full turnkey project basis including engineering, procurement, construction and commissioning,” OCBC said.

OCBC says the new contract is only a sign of things to come for SembMarine, as it is expect to undertake larger projects brought about by its new integrated yard at Tuas.

According to William Gu Wei Guang, head of SembMarine Rigs and Floaters, the contract would be its 24th project working with MODEC.

“When completed, the FSO will be deployed at Maersk Oil’s Culzean field, the largest new oil and gas field to have been discovered in the North Sea for a decade, and recently approved by the UK Oil & Gas Authority for development,” William said.