Sembcorp Marine’s subsidiary Sembawang Shipyard has won a $140m contract from Equinox Offshore Accommodation to convert a ropax vessel to a DP2 accommodation and repair vessel (ARV).

The vessel, to be named ARV3, is expected to arrive in the shipyard in January 2012 for the conversion and modification works.

Conversion of the ARV3 is scheduled to be completed in the fourth quarter of 2012 after which it will be able to provide accommodation and workshop space to support offshore facilities and projects in deep water areas.

Sembawang Shipyard managing director Ong Poh Kwee said: "We believe that with our combined expertise, we will deliver a high quality and sophisticated offshore vessel to meet the stringent requirements of Petrobas, Brazil."

After completion, ARV3 will be deployed to support offshore works in Brazil for five years under a charter contract with Petrobras.

The company said the ship will be a diesel electric DP2 high specification vessel, designed and equipped to provide accommodation and workshop facilities to support projects in deepwater areas.

Equinox Offshore Accommodation CEO Petter Hoie said Sembawang Shipyard is the company’s valued partner in Singapore for its offshore and conversion work and has strongly supported it since its inception.

"We are confident that the ARV3 will be the state-of-the-art DP2 Accommodation Repair Vessel, serving the offshore needs of our valued customer, Petrobas, Brazil," Hoie said.

The contract is not expected to have any material impact on the company’s earning for the year ending December, 2011.

Earlier this October the company’s Jurong Shipyard had won a S$130m ($99.1m) contract from MODEC to convert a very large crude carrier (VLCC) called TAR II to a floating production storage and offloading (FPSO) vessel.

The conversion contract included the installation of an external turret mooring system and process facilities.

The FPSO was scheduled to be delivered to MODEC in the second quarter of 2013.