Sembcorp Marine

Sembcorp Marine: Upstream has reported that US driller Noble Corp has won from Statoil the Cat-J contract for the chartering of a harsh-environment jack-up rig. It is expected cost US$690m (S$859m) to build. Shipyard contenders for the rig construction contract are Sembcorp Marine's (SMM) subsidiary Jurong Shipyard and South Korea's Daewoo Shipbuilding & Marine. The successful shipyard bidder for this construction contract should be announced within the next few weeks. SMM already has a track record in building jack-up rigs for Noble. It is currently building six Friede & Goldman JU-3000-N design North-sea class jack-up rigs for Noble, whereas Daewoo is vying for its first harsh-environment jack-up rig. UOB Kay Hian maintains their contract win assumptions of $5.0b p.a. for 2013-2015 (2012: $11b). Ytd, SMM has secured $1.7b of new contracts. Should it win this Noble jack-up rig contract, its contract wins will rise to $2.6b which is in line with its $5.0b contract win assumption for 2013. Current orderbook stands at $13.6b (about half of it due to drillships for Brazil) with project deliveries stretching up to 2019.