Sembcorp Marine amends Transocean accords for two deepwater drill-ships and proceeds with LNG tugs

Tuesday, 08 June 2021
Free Read

Sembcorp Marine, the Singapore-based company specialising in offshore platforms and LNG projects such as conversions and the building of its first LNG-powered tugs, has entered into agreements to amend delivery dates for two ultra-deepwater drill-ships contracted to build for global operator Transocean.

Under the new agreements, which took into due consideration work disruptions arising from the Covid-19 pandemic, the delivery dates of the two vessels have been rescheduled to December 2021 for the first vessel, “Deepwater Atlas”, and May 2022 for the second vessel, “Deepwater Titan”.

Sempcorp said that Transocean had already paid 35 percent and 30 percent of the contract price for “Deepwater Atlas” and “Deepwater Titan” respectively.

The “Deepwater Atlas” contract will also entail, US$50 million payment to JSPL upon delivery, with the remaining sum of approximately US$370M payable in quarterly instalments with accrued interest within five years from the delivery date.

The “Deepwater Atlas” is expected to commence drilling operations on the Shenandoah project in the US Gulf of Mexico in the second half of 2022 for BOE Exploration and Productions LLC of the US.

The “Deepwater Titan” agreement will see Transocean pay JSPL 80 percent of the amount payable upon delivery, or around US$350M, and the remaining 20 percent, or around US$90M, will be payable in quarterly instalments with accrued interest within five years from the delivery date.

The “Deepwater Titan” is expected to commence drilling operations with Chevron USA Inc. in the first quarter of 2023.

The “Deepwater Atlas” and “Deepwater Titan” are the first set of next-generation drill-ships with ultra-deepwater drilling capability to be constructed in Singapore.

They are also the only drill-ships in the world with three million pound hook-load and capable of 20,000 psi drilling operations.

Sempcorp said the drill-ships are designed and equipped to optimise fuel consumption and reduce emissions, supporting the industry’s commitment to a reduction in carbon footprint.

“The completion of the amendment agreements is a significant step forward and underlines the collaborative spirit of all parties and their determination to see two drill-ships built to the highest specifications for ultra-deepwater deployment be put into operation,” said Wong Weng Sun, President and Chief Executive of Sembcorp Marine.

“In the face of challenges stemming from the Covid-19 pandemic, Transocean has demonstrated understanding of the situation and confidence in Sembcorp Marine’s EPC capabilities to complete the two highly complex drill-ship projects,” declared the Sembcorp Marine CEO.

“Excluding these two drill-ships, Sembcorp Marine has delivered eight drilling rigs to Transocean,” added Wong.

The Singapore yard has also started construction of the first LNG harbour tug that will operate in the port of Singapore, on behalf of Jurong Marine Services, a subsidiary of Sembcorp Marine.

The supply contract calls for the construction of up to 12 similar tugs, because Jurong Marine Services plans to replace all of its diesel-powered tugs by 2025.

The tugs will use two 16-cylinder MTU 4000 series M55RN gas engines supplied by Rolls-Royce Power Systems, which will most likely be used for the rest of the series.

The first unit is expected to be completed in the fourth quarter of 2021 and will have a bollard pulling power of around 65 tons, enough to handle container ships, oil tankers and LNG carriers that go to the port of Singapore.

Related Video

Free Read