Singapore: Sembawang Shipyard Bags Repair Contracts Worth USD 102.8 Mln

Sembcorp Marine’s subsidiary Sembawang Shipyard has secured three major contracts totalling S$130 million (USD 102.8 mln), reinforcing its reputation as a world leading shipyard for ship repair and highly specialized offshore & LNG carriers upgrading.

The first contract is awarded by Sonangol Pesquisa e Produção S.A. (SNLPP) for the repair and upgrading of FSO Palanca. Sonangol is a state-owned company, and a subsidiary of Sociedade Nacional de Combustíveis de Angola, E.P

The contract, signed in Luanda, Angola, by Mr. Bento Lourenco, Executive Director of SNLPP, Ms Filomena Oliveira, Vice President of Executive Committee of SNLPP, and Mr Ong Poh Kwee, Managing Director of Sembawang Shipyard, calls for the major repairs and upgrading of the 20-year-old FSO Palanca. Sembawang Shipyard was awarded this milestone contract on the strength of the Shipyard’s capabilities and established track record in the highly specialized and sophisticated field of FSO / FPSO offshore modification, upgrading and repair work.

Major work scope includes the renewal of the vessel’s cargo piping system and pumps, tank blasting and coating, and cables renewal for the entire electrical system. The existing 30-men accommodation block will be re-designed and rebuilt to accommodate 60 men. The new accommodation block will include a new helideck to meet the vessel’s operational requirements.

The vessel is expected to enter Sembawang Shipyard in August 2012 and, upon completion, will return to Palanca Terminal in offshore Angola.

Besides the above FSO upgrading contract, Sembawang Shipyard was also recently awarded two LNG carriers life extension projects from the shipyard’s Favoured Customer Contract (FCC) client, North West Shelf Shipping Service Company, Australia (NWSSSC). NWSSSC is the shipping service provider to the vessel owner, International Gas Transportation Company Limited (IGTC), a North West Shelf Venture company registered in Bermuda.

The 20-year-old LNG vessels Northwest Seaeagle and Northwest Sandpiper are scheduled to enter Sembawang Shipyard in June and September 2012 respectively for major repairs and upgrading which, when completed, will further extend the vessels’ trading lives for another 10 years or more.

The awards further reinforce Sembawang Shipyard’s global leadership position in highly specialized LNG carriers’ life extension work after the successful execution of similar life extension work for NWSSSC’s Northwest Sanderling in 2009, Northwest Snipe in 2010 and Northwest Shearwater in 2011.

Mr. Ong Poh Kwee, Managing Director of Sembawang Shipyard, said: “We would like to thank our partners and customers for selecting Sembawang Shipyard to execute these important contracts and for their trust and confidence in our capabilities. These sophisticated projects demand strong engineering and project management skills to be executed in a safe environment and we are confident that through close collaboration with our partners, we will deliver the projects on time and to owners’ high QHSE standards.”

The above contracts are not expected to have any material impact on the earnings per share and net tangible assets per share of Sembcorp Marine for the year ending December 31, 2012.

(1 Singapore dollar = 0.790764 U.S. dollars)

Sembawang Shipyard, a wholly owned subsidiary of Sembcorp Marine has one of the largest integrated ship repair facilities in Southeast Asia. The shipyard’s world-class reputation is based on the company’s commitment to high quality standards, Health, Safety and Environment standards, timely delivery, superior customer service and innovative solutions. Besides its proven expertise in the sectors of tankers, bulk carriers and container / cargo vessels, the shipyard is also recognised as a specialist in the niche markets such as LNG carrier, passenger ship conversion / upgrading, FPSO conversion, offshore upgrading, conversion and newbuilding, damage repairs and repair of chemical tankers, liquefied gas carriers and navy ships.

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Shipbuilding Tribune Staff, May 17, 2012