Sembcorp Secures Rig Orders To Build Two Jack Up Rigs For Egyptian Offshore Drilling Company

PPL Shipyard, a subsidiary of Sembcorp Marine, has secured a contract from Egyptian Offshore Drilling Company, S.A.E. (EODC) for the construction of two units of jack-up rigs for a total contract value of around US$425 million.

The pair of high performance jack-up rigs will be built based on PPL Shipyard’s proprietary design Pacific Class 375 mobile offshore drilling unit and proprietary components. It 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.

Mr Tan Kim Yung, Senior General Manager in PPL Shipyard said “We are pleased that EODC have entrusted PPL Shipyard with the construction of its two offshore drilling units for their joint venture company. We envisage that EODC will increase their fleet in the near future in view of the demand for offshore drilling off Egypt. Todate, a total of 26 units of Pacific Class 375 has been ordered with 13 units delivered and 13 units currently under various stages of construction with deliveries till 2011.”

The first unit is scheduled to be delivered at the end of the fourth quarter of 2010 while the second unit will be delivered by end of the first quarter of 2011. On deliveries, these rigs will be contracted to EODC for their offshore operations in Egypt.

The 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.