Sembcorp Marine, Teekay Offshore Pact on Petrojarl Varg FPSO

Laxman Pai
Monday, October 22, 2018

Sembcorp Marine Rigs & Floaters, a wholly-owned subsidiary of Sembcorp Marine,  has signed an agreement with Varg L.L.C., a wholly-owned subsidiary of Teekay Offshore Partners L.P., for engineering, procurement and construction works related to the modification, repair and life extension of the Petrojarl Varg FPSO.

Scheduled for completion in July 2020, the work scope includes detailed engineering, fabrication, installation and integration of the topside process skid; overhauling of existing internal turret and power generation; and repair and life extension of the vessel’s hull, tanks and various systems onboard. Once finalised, the contract is estimated to be worth US$166 million.

The Petrojarl Varg FPSO will be operated by Alpha Petroleum Resources Limited for deployment at the Cheviot field development and the Peel satellite accumulation, both of which are located within the UK Continental Shelf Blocks 2/10B, 2/15A and 3/11B in the North Sea.

The effectiveness of the agreement remains subject to Alpha Petroleum Resources satisfying certain conditions precedent, including (i) Alpha Petroleum Resources finalising their debt facilities with a consortium of lenders and (ii) the approval by relevant authorities of Alpha Petroleum Resources’ final field development plan for the Cheviot Field.

Sembcorp Marine expects a positive contribution to its earnings from the contract. However, the contract is not expected to have any material impact on the net tangible assets and earnings per share of the Group for the year ending December 31, 2018.

Categories: Offshore Energy FPSO Ship Repair & Conversion

Related Stories

US Pressure on India Could Propel Russia's Shadow Oil Exports

RINA Wins FEED Contract for Petronas’ Flagship CCS Project in Malaysia

Eni-Petronas Gas Joint Venture Up for Launch in 2026

Shell’s Brazil-Bound FPSO Starts Taking Shape

SBM Offshore Starts Construction of FSO for Trion Oil Field off Mexico

Seatrium Secures ABS Backing for Deepwater FPSO Design

Saipem Wins FEED Contract For Abadi LNG Project FPSO Module In Indonesia

China Starts Production at Major Oil Field in Bohai Sea

China Rolls Out 17MW Floating Wind Turbine Prototype

MODEC and Terra Drone Renew FPSO Drone Inspection Partnership

Current News

Malaysia’s Petronas and Oman’s OQEP Strengthen Oil and Gas Ties

Southeast Asia’s 2GW Cross-Border Offshore Wind Scheme Targets 2034 Buildout

Pharos Energy Kicks Off Drilling Campaign Offshore Vietnam

Viridien to Shed More Light on Malaysia’s Offshore Oil and Gas Potential

US Pressure on India Could Propel Russia's Shadow Oil Exports

Energy Drilling’s EDrill-2 Rig Starts Ops for PTTEP in Gulf of Thailand

RINA Wins FEED Contract for Petronas’ Flagship CCS Project in Malaysia

ABL Secures Rig Moving Assignment with India's ONGC

Pakistan, Türkiye Deepen Oil and Gas Ties with Offshore Indus-C Block Deal

Eni-Petronas Gas Joint Venture Up for Launch in 2026

Subscribe for AOG Digital E‑News

AOG Digital E-News is the subsea industry's largest circulation and most authoritative ENews Service, delivered to your Email three times per week

https://accounts.newwavemedia.com