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

Ventura Offshore’s Semi-Sub Rig to Keep Drilling for Eni in Asia

SBM Offshore, SLB to Optimize FPSO Performance Using AI

Aesen, DOC JV Targets Subsea Cable Logistics

Timor Gap Boosts Stake in Finder Energy’s Timor-Leste Oil Fields

MDL Secures Cable Laying Job in Asia Pacific

PV Drilling Takes Ownership of Noble Corporation’s Stacked Jack-Up Rig

DOF Secures Moorings Hook-Up Job in Asia Pacific

Marco Polo Picks Salt Ship Design for Next-Gen Offshore Energy CSOV

CNOOC Brings Online Another Oil and Gas Project in South China Sea

MODEC and Terra Drone Renew FPSO Drone Inspection Partnership

Current News

Ventura Offshore’s Semi-Sub Rig to Keep Drilling for Eni in Asia

SBM Offshore, SLB to Optimize FPSO Performance Using AI

MODEC Ramps Up Hammerhead FPSO Work After ExxonMobil's Go-Ahead

Aesen, DOC JV Targets Subsea Cable Logistics

Timor Gap Boosts Stake in Finder Energy’s Timor-Leste Oil Fields

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

Russia Targets 2028 for Sakhalin-3 Gas Project Start Up

Seatrium Secures ABS Backing for Deepwater FPSO Design

MDL Secures Cable Laying Job in Asia Pacific

Hibiscus Petroleum Starts Drilling at Teal West Field off UK

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