SBI Offshore clinches rig contract from "Middle East-Chinese" consortium

SINGAPORE - Catalist-listed SBI Offshore has won a US$24 million (S$30 million) contract to provide design and engineering services for a jack-up drilling rig, it told the Singapore Exchange on Tuesday.

The contract was awarded by a "Middle East-Chinese consortium which comprises six parties that have varied interests in oil and gas activities", it said in a statement.

It did not name them.

The jack-up drilling rig will be designed for operating in the Middle East or Asia and will be able to operate in water depths of up to 110 meters.

SBI said work on the rig is expected to begin during the second half of this year, which is also the second half of its financial year ending Dec 31.

"The design and engineering contract is significant as it underscores our ability to move up the value chain and secure higher-value projects in new markets," said SBI Offshore executive chairman Chan Lai Thong.

The company said it would build on this contract to "offer related services and capabilities in the construction of onshore and offshore drilling rigs to the consortium and other international players in the sector".

SBI Offshore shares ended 0.7 cent higher at 14.5 cents on Tuesday.