Sembcorp Marine inks US$674m construction deal

Eight modules will be built for two FPSO vessels from Tupi.

In a release, Sembcorp Marine secured a contract worth US$674m for the construction of eight modules and module integration works for two FPSO vessels from Tupi B.V. (a consortium owned by Petrobras Netherlands, BG Overseas and Galp Energia E&P).

Scheduled for completion in 60 months, the two FPSOs will be deployed in Brazil. Tupi also has a similar contract option to construct four modules and module integration work for an FPSO which can be exercised within 18 months.

As mentioned in our earlier reports (8 Aug, 22 Aug 2012), SMM is expected to secure FPSO work from Petrobras and hence this
latest announcement is within our expectations. With this contract win, SMM has secured contracts worth about S$9.1b YTD,
accounting for 95.9% of our full year estimate.