Oro Negro Orders Two Jack-Up Rigs from Sembcorp Marine

Sembcorp Marine’s PPL Shipyard has secured additional orders for two turnkey contracts worth a combined value of US$417 million from repeat customer Integradora de Servicios Petroleros Oro Negro, S.A.P.I. de C.V. for the construction of two units of jack-up rigs.

Scheduled for delivery at end July 2015 and end of third quarter 2015, these latest pair of high-specification and high-performance deep drilling offshore jack-up rigs will be built based on PPL Shipyard’s proprietary Pacific Class 400 design. Including the earlier contracts of two identical jack-up rigs placed in November 2012 and another two similar rig units in March 2013 respectively, the total number of Pacific Class 400 jack-up rigs ordered by Oro Negro now stands at six units.

Incorporating the latest drilling equipment for improved drilling efficiency, offline handling features and simultaneous operations support, these new rigs will be capable of operating in deeper waters of 400 feet and drilling high pressure and high temperature wells to depths of 30,000 feet. These rigs will be equipped with increased accommodation with full catering facilities and amenities for a complement of 150 people on board in one-man and two-men cabins.

Mr Gonzalo Gil, CEO of Oro Negro, said “We are very pleased to repeat our orders for an additional two jack-up rigs of similar design with our partner yard, PPL Shipyard. All four jack-up rigs currently under construction in the shipyard are progressing well. With these two additional orders, we look forward to taking delivery of the first unit in the fourth quarter of this year, 2 units in 2014 and 3 units in 2015. Once fully operational, these high-specification jack-up rigs will position Oro Negro as a leading player in Mexico’s growing offshore market.”

Mr Wong Teck Cheong, Managing Director of PPL Shipyard said “We are indeed heartened that Oro Negro has chosen our yard for an additional order of two more jack-up rigs of similar design within a short span of three months. This repeat order is a reflection of the optimism the owner has in the jack-up market. It also signifies the trust and confidence that the owner, Oro Negro, has in PPL Shipyard’s design capabilities, its efficient project execution and track record for quality and timely deliveries.”

The contracts are not expected to have any material impact on the consolidated net tangible assets and earnings per share of Sembcorp Marine for the year ending December 31, 2013.

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Sembcorp Marine, July 1, 2013