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SembMarine inks contract for Shell floating production unit

SEMBCORP Marine has inked a contract with Shell Offshore Inc for work on a floating production unit. 

In an exchange filing on Monday, SembMarine said it will build and integrate the hull, topsides and living quarter's of Shell's Vito semi-submersible Floating Production Unit (FPU).

The contract includes the installation of Shell-furnished equipment, and follows a letter of intent between the two parties announced on Dec 5, 2017. SembMarine told the Business Times that it cannot disclose the value of the contract due to a confidentiality agreement with the customer.

Supported by the Vito FPU’s four-column semi-submersible hull, the topsides weigh 9,200 tonnes, and are designed to produce 100,000 barrels of oil and 100 million standard cubic feet of gas per day.

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The new unit will be located at a water depth of 1,234 metres in Mississippi Canyon Block 984 in the Gulf of Mexico, 241 kilometres south of New Orleans, Louisiana, SembMarine said.

The group expects a positive contribution to its earnings from the contract, but not a material impact on net tangible assets and earnings per share for the year ending Dec 31, 2018.

Shares in SembMarine last traded at S$2.22 on Friday.