Sembcorp Marine's Jurong Shipyard Signs $444 Million Contract for Jackup Rigs

By MarEx 2011-08-02 11:24:18

Sembcorp Marine's subsidiary Jurong Shipyard has signed two turnkey contracts worth a total of US$444 million to build another two jackup rigs for a subsidiary of Noble Corporation which had chosen to exercise the two rig options ahead of its original expiration date.  In addition to these two rig options which were granted in December 2010, Noble has also secured options for another two similar jackup rigs based on the same terms and conditions.

Scheduled for delivery in the third and fourth quarters of 2014 respectively, these two new turnkey units will be built based on the same design and specifications as four earlier Friede & Goldman JU3000N units ordered by Noble.  These rigs will be suitable for operations in challenging environments and harsh conditions, including high temperature areas such as the Middle East and in the North Sea.

The brainchild of Jurong Shipyard, Noble and Friede & Goldman, the Friede & Goldman JU3000N design jackup rigs will have an enlarged hull for more operational benefits including ergonomic and efficient accommodation layout, increased deck space and strategic placement of equipment for enhanced efficiency and safety during operations. On completion, these new rigs will be capable of operating in waters of 400 feet and drilling to depths of 30,000 feet.

Mr. Don Lee, Senior General Manager, Jurong Shipyard’s Offshore Division said “We are pleased that Noble has chosen to exercise these two rig options and has opted for two additional units ahead of time as demand for efficient and high-specification premium rigs is expected to continue.  We are delighted to be selected by Noble and to partner them in their strategy to be one of the largest operators of modern, high specification jackup drilling rigs.  We are committed to deliver all these rigs on time."

Mr. David W. Williams, Chairman, President and Chief Executive Officer of Noble Corporation said, “We have opted to exercise these two jackup rig options earlier as we foresee client demand for technically advanced, versatile and efficient rigs in the offshore sector to increase and expand geographically.  We have chosen to opt for two additional units as we believe our strategy of focusing on adding equipment with the latest technology, equipment and capabilities will position our company to benefit from future client demand and the offshore industry expansion.  We look forward to the on-time and on-budget delivery of all six units under construction at Jurong."

The contract is not expected to have any material impact on the consolidated net tangible assets per share and earnings per share of Sembcorp Marine for the year ending December 31, 2011.

Artist's impression of the Friede & Goldman JU3000N jack-up rig, the brainchild of Jurong Shipyard, Noble and Friede & Goldman