Sembmarine's Jurong Shipyard wins US$696m conversion contract

SEMBCORP Marine (Sembmarine) on Monday announced that it has secured a US$696 million contract to convert a shuttle tanker into a floating, production, storage and offloading (FPSO) vessel for OOGTK Libra GmbH & Co KG, a joint venture between Brazil's Odebrecht Oil & Gas and Teekay Offshore.

The contract was clinched by its wholly-owned Jurong Shipyard.

It involves the conversion of the Navion Norvegia shuttle tanker to an FPSO. This includes detailed engineering, installation and integration of topside modules, installation of external turret and power generation, accommodation upgrading as well as extensive piping and electrical cabling works, Sembmarine said.

The vessel is scheduled for completion in the third quarter of 2016.

When completed, it will have the capacity to produce 50,000 barrels of oil per day and four million cubic metres of natural gas per day.

It is expected to be chartered to Petrobras for work on the Libra field in the ultra-deepwater section of Brazil's Santos Basin.

The conversion work will be done at the Sembmarine Integrated Yard @ Tuas.

Including this contract, Sembmarine's new contracts secured year-to-date stands at S$3.7 billion.