SMOE emerges as frontrunner for US$1bln topside project

The contract from PTTEP could potentially lift Sembcorp Marine's YTD orders to about S$2.0bln.

Sembcorp Marine's subsidiary is partnering with Italy-based Saipem for a 20,000-tonne platform topside and 18,000-tonne jacket for PTTEP's Zawtika natural-gas development in Block M9 off Burma.

Construction would be split between SMOE’s Batam facility and Saipem’s new Karimun yard in Indonesia.

Other contenders are Hyundai Heavy Industries, Samsung Heavy Industries, Daewoo Shipbuilding and China’s Offshore Oil Engineering. An award of the contract is likely by June 11.

In addition, SMM is in the running for two Statoil semi-subs (estimated US$900m) and two jack-up rigs (estimated US$380m) from Greece-based operator, Capital Ship Management.

Contract awards could be announced in 3Q11.

CMB Research estimates a contract value of S$500mln for some if the contract were awarded under a 40:60 split.