Sembcorp Marine’s subsidiary PPL Shipyard has secured a US$208 million contract to construct a Pacific Class 400 jack-up drilling rig for Perisai (L) Inc, a wholly-owned subsidiary of Perisai Petroleum Teknologi Bhd, with an option to construct an additional unit of a similar specification jackup rig for delivery in the second quarter of 2015.
The price for the option rig is US$210 million with adjustment to certain cost escalation. The Pacific Class 400 jack-up drilling rig is PPL Shipyard’s proprietary design. This design is well established and is an enhanced version of PPL Shipyard's acclaimed and successful Pacific Class 375 design series, of which 27 units are now operating worldwide.
The Pacific Class 400 rig represents the latest generation of high-specification jack-up rigs that are capable of operating in water depths of 400 feet and drilling to depths of 30,000 feet. The rig’s maximum drill centre is cantilevered at 75 feet aft and it has a derrick hook load capacity of 1,500,000 lbs. The rig is equipped with full hotel services for a complement of 150 men on board in 1-man cabins and 2-men cabins. This unit is scheduled for delivery end July 2014.
Dr. Benety Chang, Deputy Chairman of PPL Shipyard said “We are very pleased that Perisai has chosen the Pacific Class 400 design as its maiden jack-up drilling rig design. We have complemented several companies in growing their rig fleet and in expanding their business into the offshore oil and gas sector. We hope to contribute to our partners’ long-term success and sustainable growth in the industry.”
“We would like to thank Perisai for their confidence in entrusting their first unit to PPL. The proprietary ownership of this design gives us the flexibility to customise turnkey solutions to suit our client’s and the field operator's requirement as the needs arise.”
“This unit represents the 8th unit of the Pacific Class 400 series since the launch in 2010.”
En. Izzet Ishak, the Managing Director of Perisai Petroleum Teknologi Bhd said “The construction of the jack-up drilling rig represents a significant moment for the Perisai Group. We are excited by this new class of asset as it represents our entry into the offshore drilling segment specifically in Malaysia and broadly in the Asia Pacific region.
This construction will provide our customers with access to a technologically advanced latest generation drilling rig. The rig’s high specification matches industry best standards with regard to, amongst others, water and drilling depths and load handling capacity of drill pipes. This, together with the extensive and illustrious history of PPL Shipyard, provides Perisai with added confidence as it enters into this new and exciting segment of operations.”
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, 2012.