Sembawang Shipyard Pte Ltd, a wholly-owned subsidiary of Sembcorp Marine, has secured a S$100 million contract from Dredging, Environmental and Marine Engineering (DEME) to construct a 19,000 tonnes DP2 fallpipe vessel for its subsidiary company, Tideway. Tideway is a fast growing company specialized in offshore dredging, landfall construction and pipeline stabilization works through the operation of amongst others fallpipe rock dumping vessels.
Sembawang Shipyard has been awarded this milestone specialized contract based on the shipyard's capabilities and established track record in the highly sophisticated field of offshore vessels newbuilding, conversion and modification works. In particular, DP 2 / 3 vessels demand strong project management skills, high Health, Safety, Security and Environment (HSSE) standards, proven Engineering, Procurement and Construction (EPC) expertise and strong organisational capabilities.
A fallpipe vessel is a very specialised vessel consisting of a hold in which graded rock is stocked, and a 'fallpipe', at the lower end controlled by an Remote Operated Vehicle (ROV), which places the graded rock material at an exact location. Offshore rock placement is applied mostly to stabilise and protect cables, pipelines and flow lines.
The execution of the Contract involves the complete engineering on the basic design package provided by the owners, construction of the vessel's hull, major outfitting of owner's supplied machinery including owner's furnished equipment, systems outfitting and commissioning. Upon completion, this new generation of environmentally friendly designed fallpipe rock dumping vessel will be equipped with the DP 2 capability to carry out precise rock placement works at a depth of no less than 2,000 metres. Vessel will be classed with Lloyd's Register and will also comply with Lloyd's Environment Protection Code whereby NOx emissions will be largely minimized.
The vessel is scheduled to be delivered in January 2011 for deployment worldwide and will be Tideway's biggest fallpipe vessel.
Mr Ong Poh Kwee, Managing Director of Sembawang Shipyard said: "We are pleased to be chosen by Dredging, Environmental and Marine Engineering Group as its partner to construct this highly specialized vessel to serve the offshore industry. This will be Sembawang Shipyard's 6th Dynamic Positioning (DP) Offshore Construction Vessel and further reaffirms our shipyard's solid track record as the market leader for offshore dynamic positioning vessels newbuildings and conversions. We thank the owners for their trust and confidence in our project management know-how, design, engineering, outfitting and commissioning capabilities."
Mr Alain Bernard, Chief Executive Officer of Dredging, Enviornmental and Marine Engineering Group said "We see Sembawang Shipyard as the right partner for the construction of our newly designed fallpipe vessel as the shipyard has demonstrated its strong track record in handling sophisticated offshore work especially vessels equipped with dynamic positioning capabilities. We are confident that both DEME and Sembawang Shipyard will be able to work closely towards the successful completion and commissioning of this challenging project."
This contract is not expected to have any material impact on the net tangible assets and earnings per share of Sembcorp Marine for the year ending December 31, 2008.