PPL Shipyard, a subsidiary of Sembcorp Marine has secured a contract from repeat customer, Egyptian Drilling Company (EDC) to build a jack-up rig at a contract value of US$220 million. Scheduled for delivery in mid-2010, this latest jack-up rig order is the second consecutive newbuild jack-up rig that EDC has placed with PPL Shipyard. It will be built based on the same PPL Shipyard’s proprietary Baker Marine Pacific Class 375 (BMC Pacific 375) Deep Drilling design and proprietary components. The rig will be equipped to drill high pressure and high temperature wells at 30,000 feet whilst operating in 375 feet of water. It will have accommodation with full catering and amenities for 120 persons.
The 1st rig, currently under construction in PPL Shipyard is scheduled to be delivered to owner in December 2009.
The BMC Pacific 375 Deep Drilling Jack-up design is a proven design, successfully accepted by the Industry and fetching some of the highest charter rates. Since its launch in 2004, a total of 24 jack-up rigs have been ordered based on this design. To-date, 11 units have been successfully delivered to the owners with 13 other units in various planning, engineering and construction phases with deliveries from 2008 to 2010.
This contract is not expected to have any material impact on the net tangible assets and earnings per share of Sembcorp Marine for the year ending December 31, 2008.
