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

PTTEP Acquires Southeast Asia’s Offshore Block from Chevron’s Hess Unit for $450M

Valeura Energy, PTTEP Partner Up on Gulf of Thailand Blocks

China Starts Production at Major Oil Field in Bohai Sea

Dutch Contractor Completes Malaysia’s Largest 'Rig-to-Reef' Decom Project

EnQuest Picks Up Offshore Oil and Gas Block in Brunei

Valeura Makes Progress with Multi-Well Drilling Campaign in Gulf of Thailand

MODEC, Carbon Clean to Advance FPSO-Mounted Carbon Capture Tech

Fugro Lands Deepwater Gas Field Job in Southeast Asia

TMC Books Compressors Orders for FPSO and LNG Vessels

India Stretches Bids Deadline for 13 Offshore Deep-Sea Mineral Blocks

Current News

PTTEP Acquires Southeast Asia’s Offshore Block from Chevron’s Hess Unit for $450M

Valeura Energy, PTTEP Partner Up on Gulf of Thailand Blocks

Sapura Scoops Over $118M for Chevron, PTTEP Subsea Ops off Thailand

Pandion Energy Divests Interests in Three Norwegian Assets to Inpex

China Starts Production at Major Oil Field in Bohai Sea

Dutch Contractor Completes Malaysia’s Largest 'Rig-to-Reef' Decom Project

China Rolls Out 17MW Floating Wind Turbine Prototype

SBM Offshore’s Jaguar FPSO Enters Drydock in Singapore (Video)

EnQuest Picks Up Offshore Oil and Gas Block in Brunei

CNOOC Finds Oil and Gas in South China Sea

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