Sembawang Shipyard gets FSO upgrade and LNG ship life extension contracts

sembocorpMAY 17, 2012: Sembcorp Marine's subsidiary Sembawang Shipyard has secured three major contracts totalling S$130 million.

The first contract, from Sonangol Pesquisa e Produção S.A. (SNLPP), is for the repair and upgrading of FSO Palanca. Sonangol is a state-owned company, and a subsidiary of Sociedade Nacional de Combustíveis de Angola, E.P.

The contract, signed in Luanda, Angola, by Mr. Bento Lourenco, Executive Director of SNLPP, Ms. Filomena Oliveira, Vice President of Executive Committee of SNLPP, and Mr. Ong Poh Kwee, Managing Director of Sembawang Shipyard, calls for the major repairs and upgrading of the 20-year-old FSO Palanca. Sembawang Shipyard was awarded this milestone contract on the strength of the shipyard's capabilities and established track record in the specialized field of FSO / FPSO offshore modification, upgrading and repair work.

Major work scope includes the renewal of the vessel's cargo piping system and pumps, tank blasting and coating, and cables renewal for the entire electrical system. The existing 30-man accommodation block will be redesigned and rebuilt to accommodate 60 men. The new accommodation block will include a new helideck to meet the vessel's operational requirements.

The vessel is expected to enter Sembawang Shipyard in August 2012 and, upon completion, will return to Palanca Terminal in offshore Angola.

Besides the Palanca FSO upgrading contract, Sembawang Shipyard was also recently awarded two LNG carriers life extension projects from the shipyard's Favored Customer Contract (FCC) client, North West Shelf Shipping Service Company, Australia (NWSSSC). NWSSSC is the shipping service provider to the vessel owner, International Gas Transportation Company Limited (IGTC), a North West Shelf Venture company registered in Bermuda.

The 20-year-old LNG vessels Northwest Seaeagle and Northwest Sandpiper are scheduled to enter Sembawang Shipyard in June and September 2012 respectively for major repairs and upgrading which, when completed, will further extend the vessels' trading lives for another 10 years or more.

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