sinopec orders 229mil rig

Courtesy of Rigzone:

Sembcorp Marine Wednesday, September 17, 2008


PPL Shipyard, a subsidiary of Sembcorp Marine, has secured a contract from Sinopec International (Hong Kong) Co, a subsidiary company of China Petroleum & Chemical Corporation, to build a PPL Shipyard Pacific Class 375 Offshore Jackup rig at a value of US $229 million.

This is the first newbuild jackup rig to be constructed outside of China. Scheduled for delivery in the first quarter of 2011, the rig will be owned and operated by the Shanghai Offshore Petroleum Bureau, a subsidiary of China Petroleum & Chemical Corporation (Sinopec).

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This high performance jackup rig will be built based on PPL Shipyard's proprietary design Pacific Class 375 and proprietary components. It will be equipped to drill high pressure and high temperature wells at 30,000 feet whilst operating in 375 feet of water. It will have accommodation with full catering and amenities for 120 persons.

Mr Tan Kim Yung, Senior General Manager in PPL Shipyard, said: "We are pleased that Sinopec International (Hong Kong) Co has chosen PPL Shipyard to place its first jackup rig order. This is significant as it will be the first jackup drilling rig to be constructed outside China for China Petroleum and Chemical Corporation. We are delighted to be part of this milestone. The Pacific Class 375 high performance and deep drilling jackup rig continues to be a popular design, well accepted by the industry and fetching some of the highest dayrates. To-date, a total of 27 jackup rigs have been ordered based on this design with 13 units delivered and 14 units currently under various stages of construction with deliveries till 2011."

This contract is not expected to have any material impact on the net tangible assets and earnings per share of Sembcorp Marine for the year ending December 31, 2008.