Sembcorp Marine wins Petrojarl Varg FPS0 life extension contract

Petrojarl Varg FPSO

OCTOBER 22, 2018 — Sembcorp Marine Ltd reports that its wholly-owned subsidiary Sembcorp Marine Rigs & Floaters Pte. Ltd. has signed an agreement with Varg L.L.C., a wholly-owned subsidiary of Teekay Offshore Partners L.P., for engineering, procurement and construction works related to the modification, repair and life extension of the Petrojarl Varg FPSO.

Once finalized, the contract is estimated to be worth US$166 million.

Scheduled for completion in July 2020, the work scope includes detailed engineering, fabrication, installation and integration of the topside process skid; overhauling of existing internal turret and power generation; and repair and life extension of the vessel’s hull, tanks and various systems onboard.

The Petrojarl Varg FPSO will be operated by Alpha Petroleum Resources Limited for deployment at the Cheviot field development and the Peel satellite accumulation, both of which are located within the U.K. Continental Shelf Blocks 2/10B, 2/15A and 3/11B in the North Sea.

The effectiveness of the agreement remains subject to Alpha Petroleum Resources satisfying certain conditions precedent, including finalization of debt facilities and approval by authorities of its final field development plan for the Cheviot Field.