Sembcorp Marine

Sembcorp Marine: Sembcorp Marine secures landmark ultra-high spec jack-up rig at US$596m from Noble Corp, and an option for an additional unit. The construction will be based on Gusto MSC CJ70 with an enhanced version of Statoil’s “Cat J” specs, and will have capability of operating in water depths up to 150m in harsh conditions and maximum drilling capacity of 10,000 meters. Rig scheduled to be delivered in 1Q16. This new contract was previously highlighted by UOB Kay Hian last week, estimated at a contract cost of US$690m. However, do note that the average cost of a normal jack-up rig is in the range of ~$210m, and the new order at $596m is one of the larger value orders for jack-up rigs. Contenders for this rig construction contract were Sembcorp Marine and South Korea's Daewoo Shipbuilding & Marine. This order brings Sembcorp Marine’s orders to $2.3b year-to-date, 46% of street estimates for FY13 total new orders of approximately $5b.