Safin Gulf Contracts Sembcorp’s PPL Shipyard for New Pacific Class 400 Jack-Up

The Pacific Class 400 jack-up drilling rig, a proprietary design of PPL Shipyard, represents the latest generation of high-specification jack-up drilling rigs that are capable of operating in water depths of 400 feet and drilling to depths of 35,000 feet.  Equipped with technologically advanced drilling equipment, the rig is suitable for operations in most of the world’s challenging regions. The rig’s facilities include single room and double-room accommodation for 150 personnel with full hostelry services.

Dr Benety Chang, Deputy Chairman of PPL Shipyard said “We are pleased to participate in the development of Safin Gulf and its evolution into a leading rig-operating company.  With the rig due for delivery in November 2012, Safin Gulf is expected to be successful in securing a charter contract for the rig.”

“We are pleased that Safin Gulf has chosen PPL Shipyard’s Pacific Class 400 design for their new rig fleet as part of their strategic expansion into the offshore business.  The confidence in this design and its capabilities could lead to more of such orders for our proprietary design just as it did with our Pacific Class 375 design.”

Mr Raimonds Namikis, Executive Vice President of Safin Gulf remarked:

“Safin Gulf is undergoing dynamic development with strategic focus in exploring and investing in new markets and opportunities. We see the development of the offshore business as one of such business opportunities. Having strong ambitions within our group and rapid expansion policy in our road-map, we are confident that Safin Gulf would be able to expand its offshore fleet and presence in the Middle East.”

Barring unforeseen circumstances, Sembcorp Marine expects a positive contribution to its earnings from the contract. However, the contract is not expected to have any material impact on the consolidated net tangible assets per share of Sembcorp Marine for the year ending December 31, 2012.

Transocean and Atwood Oceanics both ordered this same class of jack-up rig back in late 2010.  The current price of $213M per rig indicates a price increase of around 10% over the past 14 months.