Seatrium jumps 12.6% to S$2.59 after MOU with BP

SHARES of Seatrium surged on Thursday (Feb 13) after it announced its memorandum of understanding (MOU) with BP Exploration & Production, a subsidiary of multinational oil and gas company BP, to conduct engineering works on a floating production unit (FPU) in the Gulf of Mexico.

At 1.20 pm after the midday trading break, the counter was trading at S$2.59, up by 12.6 per cent or S$0.29 from Wednesday’s closing price of S$2.30. The last time it traded at such levels was in February 2018. 

Earlier at 9.41 am, it had risen to S$2.45, up 6.5 per cent or S$0.15. It then climbed further to S$2.49 at 11.31 am, where it was trading up by 8.3 per cent or S$0.19, with 48.6 million shares changing hands. 

Before the market opened, Seatrium announced that it signed an MOU with BP to provide engineering, procurement, construction and commissioning services for the Tiber FPU. 

The FPU is meant to support the development of BP’s deepwater assets in the waters off Mexico and New Orleans as the oil and gas company intends to develop oil fields there.

The agreement builds on Seatrium and BP’s partnership on the Kaskida project, another FPU project for which the company won the contract, it announced in December 2024. 

Seatrium said the award of the contract for the Tiber FPU project will be subject to BP’s final investment decision set to be made later this year, and that both companies will define the scope of the project’s initial works under the MOU. 

Shares of Seatrium ended 6.5 per cent or S$0.14 higher on Wednesday at S$2.30.