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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.

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.

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