SINGAPORE - Singapore rigbuilder Sembcorp Marine (SembMarine) expects to clinch an engineering, procurement and construction contract estimated at US$490 million (S$665.8 million) from Norwegian oil group Statoil Petroleum.

The two parties have signed a letter of intent after SembMarine was selected through a tender process. The actual awarding of the contract has yet to take place.

Under the contract, SembMarine's rigs and floaters unit will provide turnkey services on newbuild floating production storage and offloading (FPSO) hull and living quarters for the Johan Castberg field development.

The letter of intent is not expected to have any material impact on net tangible assets and earnings per share for the year ending Dec 31.