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SembMarine gets another rig gig

Sembcorp Marine subsidiary Jurong Shipyard has secured a second contract to complete a semi-submersible rig for SeaDragon Offshore unit Oban B worth $237.3 million, excluding owner-supplied equipment.

SembMarine secured a $247 million contract for a similar rig in April.

The first unit is a fast-track job scheduled for delivery by the end of next year, as it was signed up for a five-year charter with Mexico's Pemex.

The second rig does not have a charter secured yet. But reports last year suggested there may be parties interested in buying it from SeaDragon.

The six-column bare-deck hull, built in a Russian yard, arrived early last month, a Business Times News report said.

Jurong will turn it into one of the world's most advanced harsh-environment ultra-deep-water semi-sub.

The rig, scheduled for delivery by end-June 2011, will be able to operate in water up to 10,000 feet, with a maximum drilling depth of 30,000 feet.

Its ability to operate in all conditions will give it multi-region flexibility to operate worldwide.

"We are delighted to be working with the world-class team at Jurong on this second project, which we are confident will result in a first-class asset for charter in 2011," said Oban B's executive George Sutherland.

Jurong's Lee said: "These two state-of-the-art semi-submersible rigs will complement the range of semi-submersibles that Jurong is building and demonstrates our versatility in undertaking projects with diverse complexities."

"We are pleased that, despite challenges due to the economic downturn and the credit crunch, our order book continues to strengthen," he added.

SembMarine expects positive contributions to earnings from the latest contract for next fiscal year as well as fiscal year 2011.

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