SembMarine bags 2 offshore platform projects worth over S$550m

SEMBCORP Marine (SembMarine) has secured two offshore platform contracts worth over S$550 million to fabricate platforms at two oil fields, it said in a bourse filing on Thursday.

The first contract will see it working with its customer North Oil Company (NOC) to fabricate two well-head platforms for the NOC-operated Al Shaheen oil field in Qatar.

The work, due to start by December 2021, covers engineering, procurement, construction, installation, commissioning and offshore brownfield integration of the platforms.

It was awarded under NOC's Gallaf Project, a multi-phase development for maintaining Al Shaheen's production capacity at a plateau of 300,000 barrels of oil per day.

Al Shaheen is the largest oil field in Qatar and contributes to 45 per cent of the country's oil production, said SembMarine.

For its second contract, SembMarine will fabricate certain platforms and bridges for Total E&P Danmark.

These platforms, due to be ready by the first quarter of 2021, will replace in part ageing facilities and sustain daily outputs of 60,000 barrels of oil equivalent at the Tyra field in the Danish North Sea over the next 25 years.

SembMarine said Tyra is the largest gas condensate field in the Danish sector of the North Sea, and it will produce enough gas to power 1.5 million homes in Denmark after its redevelopment.

The contracts will support redevelopment efforts at the Al Shaheen and Tyra fields.

SembMarine's head of offshore platforms Samuel Wong said: "Sembcorp Marine's successful bids in the Gallaf Batch 2 and Tyra projects reinforce our engineering expertise in catering to different geographies and operating environments."

The contracts are not expected to have any material impact on the net tangible assets per share and earnings per share of SembMarine for the financial year ending Dec 31, 2019.

Shares of SembMarine closed unchanged at S$1.28 on Tuesday, the last trading day before Christmas.