Brazil OSX Gets Go-Ahead to Start Building Acu Shipyard

- Brazil OSX Gets Go-Ahead to Start Building Acu Shipyard

Monday, June 27, 2011
Dow Jones Newswires
RIO DE JANEIRO
by Jeff Fick & Diana Kinch

Brazilian oil-field services company OSX Brasil said Monday that it had received approval to start construction of a shipyard at the Acu Port complex in Rio de Janeiro state.

OSX will start work next month to build "the largest shipyard in the Americas," the company said. OSX, part of billionaire Brazilian businessman Eike Batista's industrial conglomerate, will partner with South Korea's Hyundai Heavy Industries Co. to build the shipyard, the company said.

Brazil's ship-building industry is undergoing a renaissance as the company ramps up production to meet growing demand from the country's oil and natural-gas industry. Several new shipyards are under construction along Brazil's Atlantic Ocean coast, while many yards that were closed during an industry downturn in the early 1980s are being revived.

Brazil was among the world's largest ship producing countries in the 1980s before a global downturn in the industry saw the local docks shuttered.

Last week, OSX said that it had received approval for a credit line worth up to 2.7 billion Brazilian reais ($1.69 billion) from Brazil's Merchant Marine Fund to finance construction of the shipyard.

OSX plans to build vessels for sister company OGX Petroleo e Gas Participacoes, which will produce crude oil from the Campos Basin off the coast of Rio de Janeiro state. The 2,400-meter docks at the shipyard will have the capacity to build up to 11 floating production, storage and offloading vessels, or FPSOs, at the same time. The FPSOs use hulls about the size of an oil supertanker.

Another OSX sister company, LLX Logistica, which is responsible for construction of Acu port, said Monday it gained an environmental permit to construct a navigation channel within the port. The channel, called TX2, will provide 8,000 meters of quayside, substantially boosting the quayside capacity available on the port's coastal stretch.

Part of the additional quayside space will be used by the OSX shipyard, while the rest is planned for use in loading and unloading of products including steel, coal, granite and oil, LLX said.

Copyright (c) 2011 Dow Jones & Company, Inc.

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TTS Inks Jackup Agreement with Jurong Shipyard

- TTS Inks Jackup Agreement with Jurong Shipyard

Tuesday, June 21, 2011
TTS Group ASA

TTS has signed a Letter of Intent with Jurong Shipyard Pte Ltd in Singapore, for delivery of a high performance drilling equipment packages for a new CJ70 jackup to be built for North Atlantic Drilling Ltd.

The new jack up, named West Linus, is specifically built to operate on the Norwegian Continental shelf and has been contracted to ConocoPhillips for five years. The new rig is an advanced, ultra large, harsh environment, high performance drilling unit matching the specifications of the largest jack ups in the world.

The new drilling equipment package has a value of approximately NOK 350 million plus various optional equipment yet to be decided on. The drilling equipment is scheduled for delivery during 3Q and 4Q 2012. TTS Energy has also granted Jurong Shipyard two options valid until September 30th, 2011 for identical drilling equipment packages.

TTS Energy has previously supplied a similar drilling equipment package to West Elara, which is a CJ70 jackup rig currently being finalized at Jurong Shipyard for North Atlantic Drilling where Seadrill holds a majority share. West Elara has been contracted to Statoil under a five year contract on the Norwegian Continental Shelf.

"We are very pleased to again have been chosen to deliver a high specification rig package to Jurong Shipyard and North Atlantic Drilling," said Johannes Neteland, President & CEO of TTS Group. "This new contract confirms our strong position in the high end drilling equipment market," he added.

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Jurong Shipyard Scores Gig for FSRU Conversion

Jurong Shipyard Scores Gig for FSRU Conversion

Monday, April 25, 2011
Sembcorp Marine

Jurong Shipyard, a wholly-owned subsidiary of Sembcorp Marine, has secured an approximately S$20 million contract from Golar LNG Energy to convert the LNG Khannur, a Liquefied Natural Gas (LNG) tanker, to a Floating Storage and Regasification Unit (FSRU) to be renamed West Java FSRU.

The 125,000-cbm LNG tanker, which arrived in Jurong Shipyard recently, will be converted into a FSRU capable of producing 500 MCFD (million cubic feet per day) of gas, with a regasification capacity of approximately 3.8 MTPA (million metric tonnes per annum).

The West Java FSRU represents Golar's fourth FSRU project for PT Nusantara Regas, a joint venture between Pertamina and PGN. On conversion completion, the vessel will be installed 15km offshore Muara Karang, Jakarta Bay, in Indonesia, where it is contracted to operate until the end of 2022, with provision for further automatic extension options to 2025 subject to certain contract conditions.

The West Java FSRU project will be Indonesia's first LNG regasifaction terminal and represents the first FSRU project in Asia.

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, 2011.

Noble Adds High Specification Jackups to Fleet

Noble Adds High Specification Jackups to Fleet

Monday, March 28, 2011
Noble Corp.

Noble has exercised two of its four options with Sembcorp Marine's subsidiary Jurong Shipyard for the construction of additional high-specification heavy duty, harsh environment JU3000N jackup drilling rigs. This order will bring to four the total number of new jackup rigs the Company will have under construction.

Total delivered costs are estimated at approximately $235 million per rig, including project management, spares, and start-up costs, but excluding capitalized interest. Payment terms are consistent with the order of the two rigs placed in December 2010: 20 percent of the construction price due at contract signing, 20 percent due at steel cutting, and the remainder due at rig delivery. Unit deliveries from the shipyard are expected in the third quarter of 2013 and first quarter of 2014. The Company still has options for up to two additional units which must be exercised by January 1, 2012. As previously disclosed, the option units are priced based on the original unit price, plus a potential escalation factor, with future deliveries scheduled in six-month increments beginning in late 2014.

The Friede & Goldman JU3000N design is an enhanced evolution of the JU2000E design and represents the latest generation of high specification jackup drilling rig with greater capacities and capabilities than most existing units. The rigs, which are approximately 231 feet in length and 270 feet in breadth, will have the capability to operate in water depths up to 400 feet and drill to depths of 30,000 feet. The rigs will each have a seventy-five foot cantilever, 2.5 million pounds of hook load capacity, a high capacity mud circulating system, and a 15,000 psi blow out preventer system. The units are capable of off-line pipe handling and offer accommodations for up to 150 people.

"Noble's fleet evolution is well underway as we focus on adding rigs with superior technology, equipment, and capabilities," said David W. Williams, Chairman, President and Chief Executive Officer, Noble Corporation. "With the addition of two more JU3000N units, Noble will have four out of the eleven jackups in existence or under construction with hoisting capacities of 2.5 million pounds. We expect ultra-premium units such as these to be in high demand and look forward to serving our future customers' growing needs in this key market segment."