Sembcorp Marine's PPL Shipyard Announces A US$195 Million Contract To Sell A Jack-Up Rig To Transocean Ltd

Sembcorp Marine's subsidiary PPL Shipyard has signed a US$195 million contract to sell a jack-up rig, already under construction, to Transocean Ltd, the world’s largest drilling contractor and the leading provider of drilling management services worldwide.
The jack-up rig is based on PPL Shipyard's latest proprietary design, the Pacific Class 400 and is scheduled for delivery in the fourth quarter of 2011. On completion, the rig will be capable of operating in waters of 400 feet and drill to depths of 30,000 feet. Equipped with the latest drilling equipment, the rig will have improved drilling efficiencies with offline handling features and simultaneous operations support. The rig is also equipped with increased accommodation for 150 men instead of 120 men as in the earlier series of Pacific Class 375 jack-up rigs.
Dr Benety Chang, Deputy Chairman of PPL Shipyard said “We are pleased that Transocean has chosen PPL Shipyard as a strategic partner in this contract. We would like to thank Transocean for their confidence in our proprietary Pacific Class 400 high-performance rig design and its advanced drilling capabilities. This rig design has been very well-received since its launch and reflects the growing demand for quality premium high-specification jack-up rigs.”
Transocean currently owns and operates five drilling rigs built by Sembcorp Marine’s yards, including two jack-ups and one semi-submersible supplied by PPL Shipyard and two semi-submersibles built by Jurong Shipyard.
The contract is not expected to have any material impact on the consolidated net tangible assets per share and earnings per share of Sembcorp Marine for the year ending December 31, 2010.
Source: Sembcorp Marine