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ASMI News 2005 : 1st Quarter

Industry News


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Industry News

Record Orders for Singapore-Built Jack-Up Rigs

In the first quarter of 2005, Singapore rigbuilding yards have already won a record number of lucrative contracts to build new jack-up rigs. The recent contracts were the result of increased oil drilling activities and replacement of ageing rigs as oil companies step up their exploration programmes and move into deeper waters.

Singapore's two major players, Keppel Offshore & Marine (KOM) through its subsidiary Keppel FELS, (KFELS), and SembCorp Marine (SCM) have secured the lion's share of new rig orders. Both have clinched all the orders placed world-wide this year for complex jack-up rigs.

Between January to March 2005, both KOM and SCM have inked a total of nine contracts comprising 12 jack-up rigs. The deals are worth a total of nearly S$2.61 billion. The jack-up rig orders are for the KFELS B Class and CJ50 designs from KFELS, and SCM's Baker Marine Pacific Class 375 Deep Drilling Offshore Jack-up Rig design.

Singapore-built rigs are in demand as oil companies venture into deeper offshore waters and harsher environments. Designed as high-performance rigs, they are capable of withstanding harsh conditions with high temperatures and high pressure. The increase in rig orders is a recognition of the strong engineering capabilities and customisation expertise in Singapore. These abilities have set Singapore apart from the competitors and reinforced her lead position in jack-up rigbuilding.

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Increasing Demand for KFELS B Class Rigs

Keppel FELS Clinches Several New Contracts for KFELS B Class and CJ 50 Rigs

Keppel FELS (KFELS) kick-started 2005 on a positive note by clinching five new rig building orders for its KFELS B Class design jack-up rig. With these five latest orders, KFELS will have 11 KFELS B Class jack-ups currently being built and five in operation since the design was introduced in 2000. In a recent development, KFELS has secured the largest series of jack-up contracts to date for four jack-ups of the CJ 50 design.

An order worth US$110 million for a new KFELS B Class jack-up rig came from Petrovietnam Drilling & Well Services Company (PVD), a subsidiary of Vietnam's national oil company, PetroVietnam. The contract was secured after a long bidding period and is Vietnam's second newbuilding project. The new jack-up rig, customised to PVD's requirements, will be capable of operating in water depth of 90 metres and drilling depth of 20,000 feet. It will have accommodation for 110 men. Upon completion in first quarter 2007, the rig will be deployed in offshore Vietnam.

The second KFELS B Class rig is secured from Awilco AS, the offshore arm of The Anders Wilhelmsen Group of Norway. The contract worth US$125 million, includes an option for an additional unit of similar design and capacity as the first, with price adjustment for steel material price and currency fluctuations. The new jack-up rig, to be named Wiflraft, is customised to Awilco's specific requirements. It incorporates the latest design and engineering concepts and is capable of drilling down to 30,000 feet in water depths of up to 400 feet. It is scheduled for delivery in end December 2006.

KFELS won the third contract from Norwegian Sinvest ASA (Sinvest) through its wholly owned subsidiary, Deep Drilling Invest Pte Ltd. Sinvest has signed an agreement with KFELS to exercise the option given in July 2004 to build a third rig. The KFELS Super B Class rig valued at US$132.8 million is scheduled for delivery in mid 2007. Under this same agreement, Sinvest has a further option to build a fourth jack-up rig with KFELS, also with price adjustment for steel price and currency exchange rates. The two earlier identical rigs are currently under construction and making good progress. These rigs, scheduled for delivery next year, have capabilities for drilling High Pressure High Temperature wells up to 35,000 feet at a water depth of 350 feet.

The fourth contract is a repeat order from Odfjell Invest (Odfjell). The US$121 million contract, clinched in March 2005, follows from Odfjell's exercise of its option given when it signed the contract for the first rig in March 2004. This rig is expected to be completed in mid 2006. The second order is scheduled for delivery in second quarter 2007.

The latest contract for a new KFELS B Class rig is valued at US$128.8 million from Seatankers Management Co Ltd. The rig is scheduled for delivery in third quarter 2007.

Apart from these new orders, KFELS has also won a rig upgrading contract from repeat customer Diamond Offshore Services Company, a subsidiary of Diamond Offshore Drilling, Inc. (Diamond). The US$85 million deal is for the upgrading of semi-submersible rig Ocean Endeavour. The rig is expected to arrive in Singapore in May 2005 with completion scheduled for fourth quarter 2006. When completed, Ocean Endeavour will be capable of drilling down to 35,000 feet and be fully outfitted for 8,000 feet moored operations, with design capabilities to operate in up to 10,000 feet of water. It will also have increased crew quarters to accommodate up to 140 personnel, over 6,000 tons of operating variable deck load and increased usable deck space.

In another development, KOM and the HE Group (JCE) of Sweden have invested in a US$95 million semi-submersible accommodation platform in anticipation of expected strong demand for such offshore supporting units. Under the co-operation agreement, a 85/15 percent Special Purpose Company between KOM and HE respectively will own the accommodation platform. Consafe Offshore AB, the wholly owned subsidiary of JCE, would be responsible for marketing, management and operation of the accommodation platform named Safe Concordia.

The ultra-deepwater platform will be built based on KOM's highly successful hull forms of the drilling tenders, West Pelaut, West Menang and West Alliance, currently deployed in deep waters. The six-column unit carries accommodation for 400 persons complete with full recreational facilities. It is compact, cost effective and capable of operating alongside fixed platforms, with a complement of a fully redundant Dynamic Positioning System, a high crane capacity and fire fighting capabilities. It is scheduled for delivery in early March 2005.

In KFELS' largest series of jackup orders secured at any one time, the yard will build four jack-up rigs for A.P. Moller - Maersk A/S (Maersk). The contracts, clinched in March 2005 and worth over S$990 million, are for the CJ 50 design from Marine Structure Consultants. The rigs can operate in water depths of up to 350 feet, and drill high-pressure wells of down to 30,000 feet. The first high efficiency rig will be completed in fourth quarter 2007, while the rest will be delivered consecutively in half-yearly intervals thereafter.

Keppel FELS Christens ENSCO 106

Keppel FELS (KFELS) recently christened its KFELS B Class design jack-up drilling rig, ENSCO 106. The rig is the first KFELS B Class jack-up customised to meet ENSCO's requirement for a larger footprint in the three legs of the jack-up. Completed within budget, the jack-up rig was delivered to ENSCO International Inc (ENSCO) ahead of schedule in end January 2005.

The footprints or spud cans of ENSC0 106 are of larger diameter to give the rig the flexibility to operate in waters where the sea-bed soil conditions are extremely soft. The rig is also equipped with the Rack Phase Differential and Pinion Load monitoring systems developed by Keppel Offshore & Marine's research and development arm, Offshore Technology Development. These systems assist rig personnel in safe deployment at the drilling location. ENSCO 106 will be deployed to Apache Energy Limited for the North West Shelf field in Australia.

In addition, KFELS has also transferred its entire 75% interest in ENSCO Enterprises Ltd II (JVC) to ENSCO Offshore International Company (ENSCO) for a cash consideration of US$80 million. The JVC is part of an alliance agreement with ENSCO to build, own and operate ENSCO 106, which is valued at around US$105 million. KFELS is currently building another jack-up rig, ENSCO 107 for ENSCO. When completed as scheduled in end 2005, it will be the sixth jack-up to be built for ENSCO since 1998. ENSCO is one of the leading offshore oil and gas drilling contractors in the world, and has 53 offshore rigs servicing the domestic and international markets.

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Sembcorp Marine Boosts Orderbook with Several Multi-Million Dollar Contracts

Jurong Shipyard Clinches Three Newbuilding Deals

SembCorp Marine Ltd (SCM) has boosted its newbuilding orderbook with multi-million contracts secured by two of its subsidiary shipyards, Jurong Shipyard Pte Ltd and Sembawang Shipyard Pte Ltd. Jurong Shipyard (JSL) was awarded S$440 million worth of contracts for the new building of two containerships, a jack-up rig as well as the fabrication of a semi-submersible hull. Sembawang Shipyard (SSPL) has also clinched deals worth US$350 million to build topside facilities for a new FPSO and to design and build a heavy lift derrick pipelay vessel, on two separate 50/50 partnership agreements.

One of JSL's contracts, worth S$143 million, is with leading Taiwanese containership operator Wan Hai Lines (Wan Hai) for the construction of two units of 2,646 TEU containerships. This brings the total order from the company to six container vessels. The latest pair of containerships will have similar specifications and requirements as the four units contracted by Wan Hai earlier in 2003. Each vessel will have a high speed of 22.7 knots with a high homogeneous container intake of more than 1,960 TEU at 14 tons per TEU. To be built with 400 reefers, each vessel will be able to carry two-tier high cubes in every cargo hold to meet increasing demand in the Intra Asia and Transpacific trade routes. Construction of the vessels will commence in the second and third quarters of 2005 respectively with deliveries scheduled for 2007.

Besides shipbuilding, Wan Hai and JSL would also be expanding their business relationship to cover ship repair activities. SCM's group of shipyards in Singapore and China would serve as an alliance partner to service the drydocking requirements of Wan Hai's fleet of container ships.

JSL has also entered into a US$131 million (S$215 million) rig building deal with Petrojack AS (Petrojack) of Norway, for the construction of a Baker Marine Pacific Class 375 Deep Drilling Offshore Jack-up Rig, with options for two additional units. The rig will be built to a proprietary design of Baker Marine Pte Ltd, a subsidiary of SCM's PPL Shipyard. Work on the new rig is expected to commence in first quarter 2005, with delivery scheduled in second quarter 2007.

In another agreement worth US$50 million (S$82 million), JSL will fabricate a new deep draft semi-submersible hull design for Atlantia Offshore (Atlantia). The hull is for its Independence Hub gas-processing platform in the ultra deep waters of the Gulf of Mexico. Houston-based Atlantia is the industry leader in providing fast-track, cost-effective solutions for deep water frontier production.

The semi-submersible hull measuring 232 feet in length and width, and 160 feet in height will be built by JSL under a very fast-track schedule. It will entail some 10,000 metric tonnes of steel fabrication, the installation of large marine systems, installation of hull electrical and instrument equipment and systems, as well as the fabrication and erection of hull marine piping systems. The 105-foot deep-draft hull will accommodate a two-level production deck capable of processing 850 million cubic feet of gas per day. When completed, the Independence Hub platform will be located at the Mississippi Canyon Block 920 in a water depth of 8,000 feet. Work commenced in February 2005 with delivery scheduled in first quarter 2006.

Sembawang Shipyard and SMOE to Build New FPSO Topside Facilities

Sembawang Shipyard Pte Ltd (SSPL), a subsidiary of SembCorp Marine, in partnership with SMOE Pte Ltd (SMOE), has signed a Letter of Intent with ConocoPhillips China Inc. (CCI) to fabricate and integrate topsides for a new build Floating Production, Storage and Offloading (FPSO) vessel. SSPL will execute the project in partnership with SMOE under a 50/50 joint venture arrangement.

Both companies have collaborated previously in similar partnership arrangements, and successfully delivered three FPSO projects, including the FPSO topsides currently under construction for the Erha Field Development in Nigeria. The new project is estimated at more than US$200 million (approximately S$321 million), and scheduled for completion in mid-2008.

The new FPSO facility is bound for Bohai Bay, China, where CCI is developing the massive Peng Lai 19-3 Phase II Oil Development Project in cooperation with CNOOC Ltd. When completed, the FPSO vessel will be the largest ever in China. It will measure 300 metres in length, 60 metres in breadth with a depth of 29.4 metres, and onboard storage capacity of 1.8 million barrels of crude oil. The hull will be built in China.

In this project, SSPL and SMOE will provide the secondary structural steel materials and fabricate 15 FPSO topside modules, one flare tower and seven pipe-rack modules, as well as integrate the facilities onto the hull of the FPSO vessel and commission the facilities prior to the vessel's departure for China. The topsides, weighing approximately 35,000 tonnes, will have a processing capacity of 190,000 barrels of oil per day with 510,000 barrels of fluid handled per day.

The second partnership agreement is with Huisman Special Lifting Equipment B.V. (Huisman), also on a 50/50 basis. Both SSPL and Huisman have secured a US$150 million contract from SapuraCrest Petroleum Berhad of Malaysia. They will design and construct a Self-Propelled DP2 Heavy Lift Derrick Pipelay vessel. Sapura 3000 will be built to ABS classification standard. The contract requires the complete engineering, construction, outfitting and commissioning of a 8000T new built hull into a self propelled, DP 2 heavy lift and pipelay vessel with a 330-men accommodation equipped with a Huisman 3000 st heavy lift crane and S-Lay Pipelay system. It also involves fabrication of the heavy lift crane and pipelay equipment, construction of bare steel hull and complete detail 3-D model engineering, systems outfitting and commissioning. Scheduled for delivery in fourth quarter 2006, Sapura 3000 will be deployed in Offshore Malaysia.

PPL Shipyard Secures Three Rig Building Contracts

PPL Shipyard (PPL), a subsidiary of SembCorp Marine, also has a good start to the new year with the clinching of three rig building deals worth US$374.3 million within a span of two months. The new contracts are for its Baker Marine Pacific Class (BMC Pacific) 375 Deep Drilling Offshore Jack-up Rig. The new contracts are worth US$374.3 million in total. One rig order, worth US$133.7 million, was from PT Apexindo Pratama Duta Tbk (Apexindo). The second contract, worth US$119.6 million, was awarded by Deep Drilling Invest Pte Ltd (DDI), a wholly owned subsidiary of Sinvest ASA of Norway. The third project from Wilsuperior Ltd, a subsidiary of Awilco Offshore ASA (Awilco), is valued at US$121 million.

The BMC Pacific design is a proprietary design of Baker Marine Pte Ltd, a subsidiary of PPL. The jack-up rig, which incorporates the Baker Marine Time Tested Proprietary Jacking System, is able to withstand storms without the use of a Rack Chock System. It is equipped with a drilling package that will enable it to drill high pressure and high temperature wells at 30,000 feet while operating in water depths of 375 feet. It has accommodation for 120 men.

Construction of the jack-up rig for Apexindo, is expected to commence in the first quarter of 2005 with delivery scheduled in January 2007. According to Apexindo, its "Rani Woro jack-up, a Baker Marine 300 unit, with its outstanding performances and capabilities, was the determining factor" in its decision to select the new BMC Pacific design. Apexindo is the largest Indonesian oil and gas drilling company. It owns and operates a fleet of rigs and several shallow water submersible swamp barge rigs.

The contract from DDI is the result of an option that PPL granted to DDI in January 2004, and which the latter has now decided to exercise. The contract takes effect in late February 2005 upon finalisation of the terms and conditions of the construction contract. The new contract will include the option for an additional jackup rig with price adjustment for increases in steel price, drilling equipment package and US$ devaluation. Construction of the rig is expected to commence in the second quarter of 2005 with delivery scheduled in the second quarter of 2007.

The order from Awilco is for a new jack-up, to be named Wilsuperior. This contract, which will take effect in June 2005, is the result of Awilco exercising its option given by PPL in May last year. Construction of the rig will begin in third quarter 2005 with delivery expected in second quarter 2007.

With these three new contracts in hand, there are currently six BMC Pacific 375 jack-ups on order since the design was launched in 2004. This includes Petrojack ASA's order for one rig of this design to be built by sister yard, Jurong Shipyard. To date, PPL has built 26 jack-ups and four semi-submersibles.

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ST Marine Secures S$83 Million Newbuilding Project

Singapore Technologies Marine Ltd (STM) has signed a contract to design and construct two Feeder Container Vessels for Shreyas World Navigation Pte Ltd. The contract is valued at approximately S$83 million.

Designed to meet the specific operational requirements of the customer, the 1030 TEU Feeder Container Vessels measure 148 metres in length and are capable of carrying 700 TEU of 14 tonnes homogeneous containers. At a design draft of 7.3 metres, the vessel is capable of achieving a speed of 19 knots. The vessels will be fitted with two cargo cranes along the centre line of the vessels to suit various loading and offloading requirements at different ports of call. The first vessel is expected to be delivered in fourth quarter 2006 and the second vessel in first quarter 2007.

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Jurong SML to Build Tankers for Kuwait Oil

JSML has secured a shipbuilding deal worth S$52 million to build two units of 4,950 dwt tankers for Kuwait Oil Tanker Company (KOTC), the transportation arm of state-owned Kuwait Petroleum Corporation. The double hull tankers, each measuring 83.5m x 19.Om x 8.2m, will have a 4,000 hp medium speed engine with UMS notation.

Classed under Lloyd's Register and in compliance with the latest IMO requirements, each tanker will have five decks of accommodation block at the aft, with 18 single-man cabins fully equipped with airconditioning and heating facilities. The single screw tankers will be built to meet the special transportation needs of KOTC within the Middle East region, including bunkering and ocean-going services. Designed to handle various grades of heavy fuel oil and marine diesel oil, the ship's cargo tanks will be equipped with stainless steel heating coils.

The award of this contract is the first time JSML is building tankers for KOTC. JSML has to date successfully delivered several vessel types comprising fast patrol vessels, containerships, clean product tankers and harbour tugs. Work on the new tankers will commence in February 2005 with delivery scheduled in the second quarter of 2006.

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Keppel Shipyard Clinches S$84 Million FPSO Conversion Deal

Keppel Shipyard (KS) has secured a contract worth S$84 million for the Floating Production Storage & Offloading (FPSO) hull conversion of MST Odin. The contract was awarded by Marathon Petroleum Company (Norway), a subsidiary of Marathon Oil Corporation, a fully integrated energy company engaged in worldwide exploration, development, production and transportation of crude oil and natural gas.

MST Odin will undergo hull upgrading and modification works which involve procurement, construction and installation of the FPSO hull equipment, including shipboard marine systems, cargo, ballast, inert gas, crude oil washing, fire fighting and electrical and instrumentation. The works also entail the fabrication and installation of topside module support structures, green water protection, modification of the mid-ship moon pool into a cargo tank, turret cone/support structures and caissons for seawater lift pumps.

The 87,000 dwt multi-purpose shuttle tanker arrived at KS for the fast-track hull conversion in March 2005. It will be redelivered at end 2005 for integration with the processing facilities by Vetco Aibel, before deployment in the Alvheim field in the North Sea.

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Sembawang Shipyard Refitted 8 Vessels for New FCC Partner

In 2004, Sembawang Shipyard (SSPL) successfully refitted a series of eight vessels comprising four Liquefied Petroleum Gas (LPG) carriers and four Very Large Crude Carriers (VLCCs) for its new Favoured Customer Contract (FCC) partner, TECTO Belgium N.V. and Franceship, Belgium (TECTO). SSPL signed the FCC with TECTO in Belgium in August 2004. With the signing of the long-term contract, SSPL is TECTO's exclusive partner in Singapore for the dry-docking and repairs of its fleet of vessels.

The contract commits both partners to cooperate in ship-repair and related services to increase mutual competitive advantages for both companies. It allows both partners to take a long term view of vessels' refits through joint planning and information sharing to achieve targets in the areas of quality, HSE (Health, Safety and Environment), cost and technology advancement. TECTO and SSPL have a relationship that spanned more than 15 years.

TECTO is a world-renowned quality ship manager for the fleet of vessels owned and operated by world-leading shipowning groups, Compagnie Maritime Beige N.V (CMB) and EXMAR N.V., Belgium. It currently manages a highly-diversified fleet of some 60 vessels comprising bulk carriers, VLCCs, LPG carriers and Liquefied Natural Gas carriers, Ultra Large Crude Carriers, coastal tankers, one Floating Production Storage Offloading unit and one accommodation barge. Among the eight vessels retrofitted by SSPL for TECTO in 2004 were four VLCCs - Luxembourg, Pacific Lagoon, Savoie, and Bourgogne, and four LPG carriers - Polar Befgica, Polar Discovery, Libin and Reqgane. The latter was delivered in end December 2004.

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Pan-United Marine Delivers M.V. YEO TIDE

Pan-United Marine (PUM) successfully delivered in late January M.V. Yea Tide, an Anchor Handling Towing Supply (AHTS) vessel, to Tidewater Marine L.L.C. (Tidewater). The contract for building two 65-metre 7,200 bhp AHTS vessels was awarded by Tidewater in July 2003.

M.V. Yeo Tide was the second AHTS vessel on order from Tidewater. It has a length BP of 58.7 metres, with a design draft of 4.2 metres and maximum draft of 4.9 metres. It can accommodate 28 persons. The first vessel, M.V. Touchet Tide, was delivered in November 2004.

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Jurong Shipyard Delivers THEODOR STORM and SENDJE BERGE

Jurong Shipyard (JSL) successfully delivered its second high performance 2,500 TEU containership, Theodor Storm, on schedule to Reederei Karl Schluter in December 2004. Theodor Storm follows the delivery of sister ship Thomas Mann in October last year to the same owner. Both vessels are from one of the yard's largest and most sophisticated containership series to date.

Built according to JSLs proprietary design, the vessel is equipped with 400 reefer containers, with a total stowage capacity of 2,586 TEU, comprising 1,628 TEU on deck and 958 TEU in the cargo holds. Able to reach a high speed of up of 23 knots, Theodor Storm is ahead of peers in the same league even at an economic speed of 21.6 knots. Designed for optimal performance, the ship's hull and propeller have been specially modified to minimise propeller-induced vibration, reduce pressure pulses and improve the wake field. The vessel has since commenced trading on a five-year charter with Malaysia International Shipping Corporation Berhad.

Another vessel, FPSO Sendje Berge, was also successfully delivered on schedule in December 2004 to Bergesen Offshore dy AS, one of the world's largest shipping companies. This followed a major upgrading operation to enhance her field development, production and storage capabilities. Sendje Berge was converted from VLCC Charlotte to a FPSO in 2000 by JSL.

Some highlights of the operation include the installation of oil fiscal metering module, cargo tank venting system, subsea control system, a new 7MW turbogenerator and HV generator as well as upgrading of the turbine. The operation also involved the installation, hook-up and inter-connection of gas compression and gas dehydration modules, as well as life extension works to increase the vessel's life for an additional four to eight years without drydocking.

The 274,333 dwt Sendje Berge is on charter to leading oil and energy company Addax Petroleum, a subsidiary of Addax & Oryx Group, for exploration and development works in Okwori Field, in the Gulf of Guinea offshore Nigeria. Measuring 349m by 52m by 27m, the FPSO will operate in water depths of approximately 140m, with a production capability of 60,000 bopd, a storage capacity of 2,000,000 bbl, an oil capacity of 38,000 bopd and a gas injection rate of 55 mmscfd.

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Catamaran VLIJ Delivered by Damen

Damen Shipyards Singapore has recently delivered Vlij, a 30-metre long aluminium catamaran to Waterbus B.V., a river bus operator based in the Netherlands. The vessel has a passenger capacity of 130 and crew of two. Its service speed is 21 knots at 15 tonnes deadweight. Classed by Bureau Veritas, the catamaran is powered by two Caterpillar C12 engines and fixed pitched propellers. Vlij will be used as a 'bus' along the canals of the Rotterdam region.

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