Sembcorp Marine’s subsidiary Jurong do Brasil Prestacao de Services Ltda (JDB) announced today that they have secured a US$674 million contract for the construction of a total of 8 modules and module integration works for 2 Floating Production Storage and Offloading vessels (FPSO) P-68 and P-71 from Tupi B.V., a consortium owned by majority shareholder Petrobras Netherlands B.V., together with BG Overseas Holdings Ltd and Galp Energia E&P B.V.
As part of the agreement, Tupi B.V. has a similar contract option to construct 4 modules and modules integration for a FPSO to be exercised within 18 months of the contract signing.
Under the contract, the FPSOs P-68 and P-71 will have identical work scopes, comprising the fabrication of 4 modules for each FPSO and module integration works. Scheduled for completion in 60 months, the P-68 and P-71 will be deployed in the Tupi field offshore Brazil. Each FPSO will have a production capacity of 150,000 barrels of oil per day (bopd).
The fabrication of the modules and the integration of the FPSOs will be carried out in Sembcorp Marine’s wholly-owned Brazilian subsidiary Estaleiro Jurong Aracruz.
Mr Martin Cheah, President of Jurong do Brasil and Country Head in charge of Latin America said “We are pleased to be awarded this contract and to support Petrobras and its partners to grow their FPSO fleet in Brazil. Jurong Shipyard, the parent company of Jurong do Brasil, is a key player in the Brazilian Oil and Gas market and has to-date delivered 12 FPSO/FSO/FPU projects to Petrobras. Jurong is proud to be recognised by Petrobras as their key partner and to be entrusted the fabrication and integration of these high-specification FPSOs which will operate in the highly challenging deep pre-salt fields, even though our shipyard Estaleiro Jurong Aracruz is still in its early phase of construction.”
The above contract is 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, 2012.