ST Marine to build two AHTS vessels

14 February 2012 (Last Updated February 14th, 2012 18:30)

ST Engineering's marine arm, ST Marine, has received two shipbuilding contracts worth S$75m ($59.28m) from Swire Pacific Offshore Operations (SPO) to build and outfit two anchor handling tug supply (AHTS) vessels.

ST Engineering’s marine arm, ST Marine, has received two shipbuilding contracts worth S$75m ($59.28m) from Swire Pacific Offshore Operations (SPO) to build and outfit two anchor handling tug supply (AHTS) vessels.

Each of the vessels will have a length of 92m and width of 22m and the order for the AHTS pair follows the order in June 2011 for four AHTS vessels. Construction of the AHTS vessels are scheduled to start in 2013 and expected to be delivered in the second and third quarter of 2014 respectively.

Swire Pacific Offshore managing director Neil Glenn said the company is committed to owning and operating high quality, reliable, environmentally friendly and fuel efficient tonnage, focused on meeting the future needs of the industry.

"We are delighted to be working again with ST Marine on this project," Glenn said.

For these vessels, SPO will supply a larger proportion of the major equipment to be integrated and installed by ST Marine. Each of the vessels will be equipped with the latest dynamic positioning technology and will be Special Purpose Ship 2008 compliant. They will also have adequate tank capacities and clear deck space of about 650sqm for other offshore applications.

Upon delivery the vessel pair will join SPO’s modern fleet supporting the latest generation of semi-submersible rigs operating in deep water and harsh environments. ST Marine president NG Sing Chan said the company’s relationship with Swire continues to strengthen with the award of these two contracts.

"Our continued focus and attention on supporting the oil and gas industry is paying dividends, and we are seeking to diversify our product range further in order to keep pace with the development of the industry and to support Swire’s growth as well," Chan said.

"These contracts add feathers to our cap, testifying to ST Marine’s capability and track record as a shipbuilder for offshore support vessels in this region."

These contracts are not expected to have any material impact on the consolidated net tangible assets per share and earnings per share of ST Engineering for the current financial year. Currently, SPO owns and operates more than 75 offshore support vessels, with a further 22 new vessels scheduled to join its fleet between 2012 and 2015.

SPO said it operates a fleet of vessels with an average age of profile of nine years and they are equipped to support a wide range of offshore activities including drilling, production, exploration, subsea construction, salvage, oil spill response solutions and seismic survey operations.