Singaporean offshore services provider Sembcorp Marine has secured the floating storage and offloading (FSO) conversion contract worth SGD56 million (USD41.4 million) from Teekay for the Gina Krog field in the North Sea.
The contract was signed by Sembawang Shipyard, a wholly owned subsidiary of Sembcorp Marine, for the conversion of shuttle tanker Randgrid into an FSO. The shipyard will be involved in fabricating and installing new living-quarter decks on the vessel. It will also involve in the installation of a new helideck, hull reinforcements, refurbishment of submersible turret loading (STL) compartment, installation of offshore crane, loading hose reel package, azimuth thruster, and replacement of two generators, as well as associated piping and additional cabling works.
The conversion works are expected to commence once Randgrid arrives at Sembawang Shipyard in June. Then, the shuttle tanker is scheduled for an 11-month conversion work before heading towards the North Sea under a charter contract between the Norwegian-headquartered Teekay and oil company Statoil.
According to Sembcorp Marine’s filing to the Singapore stock exchange, the contract is not expected to have any material impact on the consolidated net tangible assets per share and earnings per share of the company for the year ending 31 December 2015.
Previously, Sembcorp Marine has signed a letter of intent with the Netherlands-based Heerema Offshore Services for the engineering and construction of a new semi-submersible crane vessel (NSCV) in March. The letter of intent was signed by its wholly owned subsidiary, Jurong Shipyard, and once completed the NSCV will be the largest crane vessel in the world.