Sembcorp Marine's PPL Shipyard secures US$220.5 million contract to construct a jack-up rig for Bot Lease Co., Ltd Monday, Jun 03, 2013
Sembcorp Marine’s subsidiary PPL Shipyard has secured a contract to build a jack-up drilling rig from BOT Lease Co., Ltd (“BOTL”), a leasing company of The Bank of Tokyo-Mitsubishi UFJ which is under the umbrella of Mitsubishi UFJ Financial Group. The contract price is US$220.5 million (excluding cost of BOTL’s project management team and pre-operations cost).
Scheduled for delivery at end January 2015, the new rig will be built based on PPL Shipyard’s established proprietary Pacific Class 400 design. This design represents the latest generation of high-specification jack-up rigs that are capable of operating in deeper waters of 400 feet and drilling high pressure and high temperature wells to depths of 30,000 feet. The rig will be designed with the latest drilling equipment for improved drilling efficiencies along with offline handling features and simultaneous operations support. It is equipped with increased accommodation with full catering and amenities for 150 persons.
Japan Drilling Co., Ltd will be the co-ordinator in the project and will provide the project management team during the rig construction phase.
Mr Douglas Tan, Managing Director of PPL Shipyard said “We are pleased that BOT Lease Co., Ltd in collaboration with Japan Drilling Co., Ltd have chosen our latest proprietary Pacific Class 400 series, a proven design that has been well-accepted by the industry. Since the launch of this Pacific Class 400 series, twelve such jack-ups have been ordered with six units delivered and operating in West Africa, Gulf of Thailand, Qatar and Middle East. The jack-up rig order is a reflection of the optimism that the owner has in the jack-up rig market and an endorsement of PPL Shipyard’s design capabilities, efficient project execution, and track record for quality and timely deliveries.
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, 2013.
About PPL Shipyard
PPL Shipyard, a subsidiary of Sembcorp Marine, is an integrated rig design and rig building yard with proven track record in the building and servicing of jack-up and semi-submersible rigs. To-date, the shipyard has built 52 jack-ups, 6 semisubmersibles and 4 swamp barges. Its flagship jack-up design, the Pacific Class 375 saw a total of 27 units delivered. In 2010, the shipyard launched the enhanced Pacific Class 400 series which saw a total of 12 rigs ordered and a total of 6 units delivered to-date.
About BOT Lease Co., Ltd
BOT Lease is an affiliate leasing company of The Bank of Tokyo-Mitsubishi UFJ, Ltd., providing a broad array of equipment finance and leasing products and solutions for companies located throughout Japan and internationally.
About Japan Drilling Co., Ltd
Japan Drilling is Japan's sole offshore drilling company listed on the Tokyo Stock Exchange. Founded in 1968 and headquartered in Tokyo, Japan, it has been providing high quality offshore drilling services for many energy companies worldwide.
