China: JES Inks Offshore Accommodation Vessels LOI
The Board of Directors of JES International Holding s Limited announced today that its wholly-owned subsidiary Jiangsu Eastern Heavy Industries Co., Lt d, has signed a letter of intent to construct up to 4 Offshore Accommodation Vessels (OAVs) valued at approximately USD 147 million each.
This letter of intent is signed with the buyer from a Singapore-based offshore company. The eventual arrangement with the buyer is likely to be in the form of an order contract for 1 OAV and 3 options of 1 OAV each. The Group expects to sign the formal agreements with the buyer before May 2013 pending finalisation of certain details of the terms.
The OAVs, a DPII type, are equipped with offshore construction capabilities and is expected to be capable of accommodating about 400 to 500 crews and staffs. The Company will make further announcement(s) as and when there are material developments in relation to these shipbuilding agreements and/or upon the signing of the agreement.
Press Release, March 21, 2013