January 15, 2007
COSCO wins order for semi submersible
COSCO Corporation (Singapore) Limited has announced that its 51%-owned subsidiary, COSCO Shipyard Group has signed a Letter of Intent ("LOI") with Marine Accurate Well ASA (Maracc) to build a GM4000 semi submersible vessel designed for well intervention services. The contract value is estimated at US$200 million).
The formal contract which is expected to be signed in China later this month has an option for Maracc to exercise for additional three such new vessels.
The GM4000 is a semi submersible vessel designed for well intervention services including a wide range of capabilities like through tubing rotatory drilling and coiled tubing drilling. It is the first purpose-built well intervention unit capable of operating on the Norwegian Continental Shelf all year round.
Mr. Ji Hai Sheng, Vice Chairman and President of the Company and Vice Chairman of COSCO Shipyard Group said, "Our successful investments in offshore marine engineering capacity and capability upgrade over the last two years are beginning to pay off tremendously. Having secured a steady flow of high-value contracts with reputed international oil & gas and offshore marine engineering companies, we are committed in our efforts to continue to deliver world-class products and services to our world-class clientele like Maracc."
Mr. Oyvind Jordanger, Chairman of Norweigian based Maracc said, "We are expecting strong growth in the market for well intervention services in the years to come due to the increasing number of subsea oil & gas wells in production. Conventional drilling rigs traditionally used for well intervention work are experiencing full utilization in exploration and development work. We have chosen COSCO as our trusted partner to meet our demands in this regard due to their high quality standards and strong capability and capacity to take on such technically demanding projects."
The vessel will be built at the Group's COSCO Zhoushan shipyard. The project is expected to take approximately 34 months.
Listed on the main board of the Singapore Exchange, COSCO Corporation is the listed subsidiary of China Ocean Shipping (Group) Company, the largest shipping group in China.