Sembcorp Marine secures $296m order to build jack-up rig

A unit of marine and offshore engineering group Sembcorp Marine has clinched a US$236 million (S$296 million) contract to build a jack-up rig, the Singapore-listed group said on Wednesday, May 21, 2014. -- PHOTO: BLOOMBERG
A unit of marine and offshore engineering group Sembcorp Marine has clinched a US$236 million (S$296 million) contract to build a jack-up rig, the Singapore-listed group said on Wednesday, May 21, 2014. -- PHOTO: BLOOMBERG

SINGAPORE - A unit of marine and offshore engineering group Sembcorp Marine has clinched a US$236 million (S$296 million) contract to build a jack-up rig, the Singapore-listed group said on Wednesday.

Jurong Shipyard, a subsidiary of Sembcorp Marine, will build the tailor-made rig for new customer Hercules North Sea and deliver it by the second quarter of 2016.

The rig will be designed to operate in waters of 400 feet and drill to depths of 30,000 feet, Sembcorp Marine said. It will be chartered out to Maersk Oil and Gas for deployment in the British sector of the North Sea.

Hercules North Sea is a unit of Nasdaq-listed Hercules Offshore, which offers jack-up drilling and liftboat services with a fleet of 36 jack-up rigs and 24 liftboats.

"This reaffirms Jurong Shipyard's position as a customer-oriented yard in providing tailor-made rig designs and solutions for our customers," said Mr William Gu, Jurong Shipyard's general manager of its offshore division.

Hercules Offshore chief executive and president John T. Rynd said: "We are pleased to partner with Jurong Shipyard as we believe in Jurong Shipyard's strong track record in delivering quality rigs customised for our clients."

Sembcorp Marine's total new orders secured so far this year now stand at $1.93 billion, including the latest contract. The group's net order book has reached $13.2 billion, with deliveries extending into 2019.

The new order is not expected to materially affect Sembcorp Marine's consolidated net tangible assets per share or earnings per share for the current financial year.