HAMILTON, Bermuda and SINGAPORE, June 20, 2005 (PRIMEZONE) -- Jurong Shipyard, a wholly owned subsidiary of SembCorp Marine has secured an EPC contract to build two ultra-deepwater semi-submersible drilling rigs worth a total project value of US$780 million for Seatankers Management Co. Ltd. (Seatankers). Seatankers will give the public drilling company SeaDrill Ltd. the right to acquire the rig at existing contract terms.
Under the contract, Jurong Shipyard will build the 6th generation ultra-deepwater semi-submersible drilling rigs based on the Friede & Goldman (F & G) design. The F & G ExD designed semi-submersible rig is capable of operating in a challenging deepwater arena, in particular in the Gulf of Mexico, offshore Brazil and West Africa, and in dynamic positioning mode in water depths up to 10,000 feet. The semi-submersible rig is also engineered for stability and versatility with operational displacement of 43,400 metric tons at 17 meters draft and 46,750 metric tons at 20 meters draft. The rig will also have 18,000 square feet of usable deck space and more than 7,000 metric tons of variable deck load.
Construction of the first semi-submersible rig takes immediate effect with delivery scheduled in the first quarter of 2008. The second semi-submersible rig, on a three-month option, takes effect in October 2005 with delivery scheduled in the first half of 2009.
Mr. Don Lee, Senior General Manager of Offshore Division said, "Jurong Shipyard is pleased to be awarded this prestigious project, which followed hot on the heels of the successful delivery of two such similar units of ultra-deepwater semi-submersible rigs to a reputable U.S. drilling contractor in the first quarter of this year. This award by Seatankers is testimony of Jurong Shipyard as a premier rig builder and a recognized global player in the offshore market."
"We are very privileged to have the opportunity to work with Seatankers and R S Platou, a leading offshore broker, in concluding this important contract," added Mr Lee.
Mr. John Fredriksen, of Seatankers Management Co. Ltd. said "We have chosen to build the rigs in Jurong Shipyard based on the shipyard's proven track record in building quality rigs. We are extremely pleased to be able to work with such a first class shipyard. It has been of vital importance for us that Jurong is delivering a turnkey project including full completion tests of the units."
Speaking of the market, Mr. Fredriksen added, "We have worked on this project for some time. With only three other Semi-Subs newbuildings presently under construction and with limited yard space available we see this as a very interesting market position. It is intended to inject the contracts into SeaDrill Ltd at original contract terms. The first firm contract is based on 70 % payment by delivery, while the second optional contract has more upfront payments. In order to achieve optimal return for the equity holders in SeaDrill, Seatankers is prepared to remain guarantor of the contract vs the yard. A contract price of US$390 million per unit delivered on a turnkey basis with all owner furnished equipment ( OFE ) including 7500 feet of riser and BOP, is a very attractive price in a market where similar units today achieve TC earnings of US$350-400,000. The contract is expected to give a large boost to SeaDrill's earnings and cashflow per share capacity when the rigs will be delivered."
Jurong Shipyard is a leading shipyard offering integrated solutions in ship repair, shipbuilding, offshore conversion, rig building and offshore engineering. The shipyard has recently delivered two units of the world's most advanced 5th generation ultra-deepwater dynamic positioning semi-submersible rigs to Global SantaFe International using its proprietary designed skidding methodology, which is construction-friendly and safe. This unique and innovative building method has won the shipyard Singapore's Innovation Award of the Year in 2003. Apart from its proven track record in the building and servicing of jack-up and semi-submersible rigs, Jurong Shipyard is also a global leader in the EPC conversions of tankers to floating, production, storage and offloading units (FPSOs), floating storage tankers (FSOs) and floating production units (FPU).
Seatankers Management Co. Ltd, a company based in the Republic of Cyprus. Seatankers has, through its direct affiliation with the investment company Greenwich Holdings, a majority stake in the Bermuda-based drilling contractor SeaDrill Ltd. who currently owns and operates seven offshore rig units including two Jack Up newbuildings presently under construction.
Contact: Tor Olav Troeim : +44 207 824 5530
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