Sembawang Shipyard wins vessel repair and upgrading deals

20 May 2012 (Last Updated May 20th, 2012 18:30)

Sembawang Shipyard, a subsidiary of Sembcorp Marine, has won three contracts worth S$130m ($102.7m).

Sembawang Shipyard, a subsidiary of Sembcorp Marine, has won three contracts worth S$130m ($102.7m).

Angola’s Sonangol Pesquisa e Producao (SNLPP) has awarded the first contract for the repair and upgrading of the Palanca floating, storage and offloading (FSO) unit.

Work under the contract includes renewal of Palanca’s cargo piping system and pumps, tank blasting and coating, and cable renewal for the entire electrical system of the 20-year-old FSO.

Under the deal, Sembawang will also redesign and rebuild the existing accommodation block on the vessel so it can accommodate 60 people, double its current 30 person capacity, while it will also be equipped with a new helideck to meet the vessel’s operational requirements.

The Palanca FSO is expected to arrive at Sembawang Shipyard in August this year and will return to the Palanca terminal, off Angloa, once work on the vessel is complete.

In 1991, Japan’s Mitsubishi Heavy Industries (MHI) built the 331,880-m3 vessel, which has a storage capacity of almost 2.2 million barrels.

In addition, Sembawang was also awarded two liquefied natural gas (LNG) carrier life extension projects from North West Shelf Shipping Service Company, Australia (NWSSSC), which is the shipping service provider to the vessel owner, and International Gas Transportation (IGTC), a North West Shelf Venture company registered in Bermuda.

The two 20-year old Northwest Seaeagle and Northwest Sandpiper LNG vessels are due to arrive at the yard in June and September, respectively, to undergo major repairs and upgrading, which is expected to extend the vessels lives by at least another ten years.

According to Sembawang Shipyard, the contracts are not expected to have any material impact on the earnings per share and net tangible assets per share for the year ending 31 December 2012.

The order follows a similar programme of work on Northwest Sanderling in 2009, Northwest Snipe in 2010 and Northwest Shearwater in 2011.