Sembcorp Marine's PPL Shipyard secures US$240 mln contract to build a jack-up rig
Sembcorp Marine announces, that its subsidiary PPL Shipyard has secured a US$240 million contract to build a new jack-up drilling rig from BOT Lease Co., Ltd, a leasing company of The Bank of Tokyo-Mitsubishi UFJ which is under the umbrella of Mitsubishi UFJ Financial Group. The contract value may be higher on additional specification requirements to be negotiated among the parties involved, the company said in its press release.
Scheduled for delivery at the end of October 2016, the new rig (to be named Hakuryu 14) will be built based on PPL Shipyard’s established proprietary Pacific Class 400 (PC 400) design. This latest generation of high-specification jack-up rigs is capable of operating in deeper waters of 400 feet and drilling high pressure and high temperature wells to depths of 35,000 feet. The rig design features two million pounds hook load and the latest drilling equipment for improved drilling efficiencies along with offline handling features and simultaneous operations support. It will have accommodation for 150 persons with full catering and amenities.
This will be the second jack-up rig that PPL Shipyard is building for BOTL, with Japan Drilling Co., Ltd (JDC) once again being the project coordinator as well as providing the project management team during the rig construction phase. The first unit, named Hakuryu 12, is presently under construction with contractual delivery at end January 2015. PPL Shipyard also built the Hakuryu 10, a PPL Shipyard proprietary Pacific Class 375 series, for JDC - that unit was delivered in June 2008 and is currently chartered to Total E&P Indonesia.
“Since the launch of this Pacific Class 400 series, eighteen such jack-ups have been ordered with nine units delivered and operating in West Africa, Gulf of Thailand, South East Asia, Qatar and the Middle East. This clearly shows the PC400 is a proven design well accepted by the industry. This jack-up rig order reflects the owner’s confidence in the premium jack-up rig market and in PPL Shipyard’s design capabilities, efficient project execution, and track record for quality and timely deliveries.”
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 December 31, 2014.
About BOT Lease Co., Ltd
BOT Lease is an affiliate leasing company of The Bank of Tokyo-Mitsubishi UFJ, Ltd., providing a broad array of equipment finance and leasing products and solutions for companies located throughout Japan and internationally.
About Japan Drilling Co., Ltd
Japan Drilling is Japan's sole offshore drilling company listed on the Tokyo Stock Exchange. Founded in 1968 and headquartered in Tokyo, Japan, it has been providing high quality offshore drilling services for many energy companies worldwide.
About Sembcorp Marine
Sembcorp Marine is a leading global marine and offshore engineering group with over 50 years of experience and proven capabilities in repair, specialised shipbuilding, building of high-specification jack-up rigs, fast-track construction of ultra-deepwater semi-submersible rigs, conversion of floating production and storage facilities as well as the engineering and construction of offshore platforms.
Headquartered in Singapore, Sembcorp Marine has a network of six shipyards in Singapore – Jurong Shipyard, Sembawang Shipyard, SMOE, PPL Shipyard, Jurong SML and Sembmarine Integrated Yard @ Tuas. The 73.3-hectare Sembmarine Integrated Yard @ Tuas Phase I facility commenced operations in August 2013. The Group’s strategic presence spans Indonesia, China, India, United Kingdom and Brazil.
PPL Shipyard, a subsidiary of Sembcorp Marine, is an integrated rig design and rig building yard with proven track record in the building and servicing of jack-up and semi-submersible rigs. To-date, the shipyard has built 57 jack-ups, 6 semisubmersibles and 4 swamp barges. Its flagship jack-up design, the Pacific Class 375 saw a total of 27 units delivered. In 2010, the shipyard launched the enhanced Pacific Class 400 series which saw a total of 18 rigs ordered and a total of 9 units delivered to-date.