The Netherlands: SapuraCrest, IHC Offshore Ink Two Pipelay Support Vessels Deal

SapuraCrest Petroleum Berhad, through its wholly-owned subsidiaries, TL Offshore PLSV1 Ltd  and TL Offshore PLSV2 Ltd, have yesterday entered into a contract with IHC Offshore and Marine B.V., for the construction of two units of 550 tonne pipelay support vessels, at a fixed lump sum price. The two Contracts are both dated 11 January 2012.

Payment Terms

The Consideration will be paid on the following terms for both vessels/Contracts:

1) 10% of the Contract price within 15 banking days after contract signing;

2) The next 10% of the Contract price within 25 banking days after contract signing; and

3) Balance 80% of the Contract price upon delivery of the vessels.

The Builder’s scope of work under the contracts includes the provision and completion of basic design, detailed engineering, procurement, fabrication, construction, testing, commissioning, sea trials and successful delivery of the Vessels.

Vessel 1 and Vessel 2 will be completed and delivered to PLSV1 and PLSV2 within 30 months (30 May 2014) and 33 months (29 Aug 2014) respectively from 30 November 2011.

The construction and purchase of the Vessels under the Contracts will enable PLSV1 and PLSV2 to capitalise on the positive outlook in the installation of pipelines and facilities (IPF) segment in the oil and gas industry, specifically in Brazilian waters, pursuant to Petróleo Brasileiro S.A contracts for charter and operation of Pipe Laying Support Vessels (“Petrobras Contracts”) which was earlier awarded to the Company, via the Company’s wholly owned subsidiary, TL Offshore Sdn Bhd. With the deployment of these Vessels, the company will be able to enhance its market share by growing the revenue stream within its existing core business. After delivery, the Vessels will be slotted to perform the services under the Petrobras Contracts.

The construction and purchase of the Vessels under the Contracts will be funded by internally generated funds and bank borrowings.

[mappress]

Shipbuilding Tribune Staff, January 13, 2012;