Sembcorp’s Jurong shipyard secures $886m FPSO conversion contract for Libra

Scheduled for completion in 2016.

Sembcorp Marine continues to clinch big time contracts for a diverse set of projects.

In a press release, the company announce that its wholly-owned subsidiary Jurong Shipyard Pte Ltd has secured a US$696 million contract to convert a shuttle tanker into a floating, production, storage and offloading (FPSO) vessel for OOGTK Libra GmbH & Co KG, a joint venture between Brazil’s Odebrecht Oil & Gas and Teekay Offshore.

The contract involves the conversion of the Navion Norvegia shuttle tanker to an FPSO that includes detailed engineering, installation and integration of topside modules, installation of external turret and power generation, accommodation upgrading as well as extensive piping and electrical cabling works.

Here’s more from Sembcorp:

Scheduled for completion in the third quarter of 2016, the FPSO will have the capacity to produce 50,000 barrels of oil per day and 4 million cubic metres of natural gas per day. The block covers approximately 1,550 square kilometres in water depths of around 2,000 meters (6,500 feet). The reservoir depth is around 3,500 meters below the sea floor (11,500 feet). Brazil’s ANP has estimated that total gross peak oil production could reach 1.4 million barrels per day.

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, 2014. Including the above mentioned contract, Sembcorp Marine’s new contracts secured year-to-date stands at S$3.7 billion.