Sembcorp Marine unit to build sophisticated drilling rig for Gulf Drilling Int'l

It's a US$218.5m worth of contract set to deliver a rig that can operate in depths of 400 feet and provide accommodations with full hotel services.

According to a release by Sembcorp Marine, the company's subsidiary, PPL Shipyard has secured a US$218.5 million contract to build a jack-up rig from Gulf Drilling International Ltd (Q.S.C.) (GDI), one of the largest Middle East drilling companies.

Scheduled for delivery in the first quarter of 2013, the new rig will be built based on PPL Shipyard’s Pacific Class 400 series, an established proprietary design which represents the latest generation of high-specification jack-up rigs that are capable of operating in water depths of 400 feet and drilling to depths of 35,000 feet. Equipped with technologically advanced drilling capabilities, the rig isspecially customised for the intended project and has accommodation for 150 personnel with full hotel services. On delivery, this jack-up rig will be the most
technologically advanced drilling rig operating in Qatar.

Dr Benety Chang, Deputy Chairman of PPL Shipyard said “We are pleased that Gulf Drilling International has chosen our latest proprietary Pacific Class 4T00 series, a proven design that has been well-accepted by the industry. Since the launch of this Pacific Class 400 series, five such jack-ups have been ordered with one unit delivered and operating in West Africa. Another rig will soon be delivered and is scheduled for deployment in Thailand.”

“PPL Shipyard’s ownership of the Pacific Class 400 design gives us the flexibility of design control and the ability to customise turnkey solutions to suit our customers’ unique project requirements. Our ability to deliver early and meet Gulf Drilling International’s commitments was an added attraction for this particular rig contract. We would like to thank Gulf Drilling International for their trust and confidence in PPL Shipyard and are committed to the timely delivery of this jack-up rig. On completion, the rig would proceed to work in Qatar.”

Mr Ibrahim Al-Othman, the Chief Executive Officer of Gulf Drilling International said “We are pleased to be placing this order with PPL. We are most familiar with the PPL rig designs and consider them to be very suitable for the
requirements of our clients here in Qatar. PPL is well known as a high quality rig builder and we are pleased to have placed our first order with them. I look forward to adding another high-spec premium rig to our fleet and am confident that this rig will perform to our clients’ satisfaction.”

Barring unforeseen circumstances, Sembcorp Marine expects a positive contribution to its earnings from the contract. However, the contract is not expected to have any material impact on the consolidated net tangible assets per share of Sembcorp Marine for the year ending December 31, 2012.