Cosco finalises offshore vessel deal

8 January 2012 (Last Updated January 8th, 2012 18:30)

Cosco’s Singapore unit has received a $220m order from an unnamed Asian company for the construction of two offshore construction vessels.

Cosco’s Singapore unit has received a $220m order from an unnamed Asian company for the construction of two offshore construction vessels.

The unnamed Asian firm has signed up for the pair of pipe-laying, heavy-lift offshore construction vessels at the company’s Nantong facility in China. The vessels are scheduled to be delivered in the fourth quarter of 2013 and the first quarter of 2014.

Cosco said the contract is not expected to have any material impact on the net tangible assets and earnings of the company for the year ending 31 December 2012.

According to Business Times, SapuraCrest Petroleum’s wholly-owned subsidiary TL Offshore is behind the deal and the company has formalised two separate contracts with Cosco (Nantong) Shipyard for the vessel pair. The company signed a $227m contract last September for the two offshore construction vessels. While signing the contract TL Offshore said that the ship pair will be of same design but have different pricing.

The first vessel was expected to cost $110.2m, while the second vessel was expected to cost $116.7m, SapuraCrest said.

After delivery the vessels will be deployed to perform marine construction contracts for major oil companies.

In December 2011, Cosco won a contract to convert a very large crude carrier (VLCC) into a floating production storage and offloading (FPSO) vessel for an unnamed Japanese shipowner.

The FPSO is designed to operate for 20 years without dry-docking; it will have the capacity to process 28,600m3 per day of liquid and eight million cubic metres per day of gas, and will have a storage capacity of 1,600,000 barrels of oil.

Upon completion of the work at Cosco’s Dalian shipyard in China, the vessel will be deployed in the Cernambi-Sul Field, offshore Brazil.