Sembawang Shipyard Secures Longevity, Upgrading And Damage Repair Contracts Worth S$130 Million And Renews Long-Term Contract With Eitzen Group
Singapore, February 18, 2010: Sembcorp Marine’s subsidiary Sembawang Shipyard has secured major longevity, upgrading and damage repair contracts worth S$130 million, reinforcing its reputation as a world-leading ship-repair yard.
These include the following contracts:
LNG Carrier Longevity Contract for North West Shelf LNG Venture
The Northwest Snipe is scheduled to arrive in the shipyard in September 2010 to undergo sophisticated life extension works which include ballast tanks blasting and coating work, hull structural enhancement, integrated automation system renewal, HVAC and refrigeration system renewal, cargo and ballast valve actuator system replacement and boiler system renewal. This will be Sembawang Shipyard’s second longevity project for the North West Shelf LNG Project following the successful completion of the life extension work on Northwest Sanderling in August 2009. This award further reinforces Sembawang Shipyard’s global leadership position in the specialised LNG carriers’ life extension work.
Damage Repair Contract
The second contract is awarded by Sembawang Shipyard’s regular customer from Taiwan, for major fire damage repair work on its 2005-built product tanker. With a contract value estimated in the region of S$35 million, the scope of work includes major steelwork renewal, complete renewal of the entire accommodation block, major electrical and instrumentation work in the engine room, mechanical work and pipework. Work on the product tanker has just commenced.
Other Projects
Other contracts include three vessel upgrading/repair projects from cruise owners such as Star Cruises (Malaysia), the leading cruise line in Asia Pacific, Carnival Cruise Line (United Kingdom), a subsidiary of Carnival Corporation, the world’s largest cruise ships owner and operator, and PT Pelayaran Nasional Indonesia (Pelni).
Sembawang Shipyard was awarded these contracts on the strength of the shipyard’s capabilities and solid track record for the repairs, refurbishment and modification of passenger ships and more importantly its ability to meet the stringent QHSE (Quality, Health, Safety and Environment) requirements and fixed schedule of cruise ship owners and operators.
Besides the above contracts, other major contracts secured recently by Sembawang Shipyard include the refit and upgrade of two drillships.
Renewal of Long-term Contract with Eitzen Group
Sembawang Shipyard is pleased to announce the renewal of its long-term contract with Eitzen Group. Signed on 28th January 2010 in Singapore, the long-term contract with Eitzen Group is the reaffirmation of the close relationship between Eitzen Group and Sembawang Shipyard. Eitzen Group controls some 100 ships trading worldwide and under this contract, Eitzen Group will continue to send some 6 to 8 ships to the shipyard annually for scheduled and upgrading repairs.
The above contracts are 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, 2010.
About Sembawang Shipyard
Sembawang Shipyard, a wholly-owned subsidiary of Sembcorp Marine, has one of the largest integrated ship repair facilities in Southeast Asia. The shipyard's world-class reputation is based on the company's commitment to high Quality, Health, Safety and Environment standards, timely delivery, superior customer service and innovative solutions.
Besides its proven expertise in the sectors of tankers, bulk carriers and container/cargo vessels, the shipyard is also recognised as a specialist in niche markets such as LNG carriers, passenger ship conversions/upgrading, FPSO conversions, offshore conversions and newbuildings, damage repairs as well as chemical tanker, liquefied gascarrier and navy ship repairs.
Sembcorp Marine