Sembcorp Marine's subsidiary inks US$214.3 million contract to supply jack-up rigs

A subsidiary of Sembcorp Marine - PPL Shipyard - inked a US214.3 million (S$271.3 million) contract with a unit of Marco Polo Marine (MPM) to supply a turnkey jack-up rig.

The contract includes an option for two similar jack-up rig units to be exercised by MPM, the company said on Wednesday.

The rig is scheduled for delivery in the fourth quarter of 2015, and is able to operate in deeper waters of 400 ft and drilling high pressure and high temperature wells to depths of 30,000 ft.

Mr Seah Lee Yun Feng, the group chief executive of MPM, said the agreement with PPL Shipyard "marks the start of a significant leap forward in terms of our operations and service offerings".

Managing director of PPL Shipyard, Wong Teck Cheong, said supplying MPM with its maiden offshore drilling rig is proof of the industry's recognition for the firm's ability to "deliver quality rigs on schedule and within budget".

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 Dec 31 this year, but could yield a positive contribution to its bottomline.

Sembcorp Marine's shares closed down one cent to $4.03 on Wednesday.

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