SBI Offshore Limited has secured a US$24 million contract to provide design and engineering services for a jack-up drilling rig that can operate in water depths of up to 110 meters.
SGX Catalist-listed SBI Offshore said its wholly owned subsidiary, SBI O&M Pte. Ltd., signed the contract with a Middle East-Chinese Consortium which comprises six parties that have varied interests in oil and gas activities.
Under the contract, SBI O&M will provide design, engineering and supervision services for a jack-up drilling rig that will meet requirements of the American Bureau of Shipping Classification A1 for Self-Elevating Drilling Unit. The jack-up drilling rig will be designed for operating in the Middle East or Asian regions.
Work is expected to start during the second half of the financial year ending 31 December 2014 (“FY2014”) and the contract is expected to contribute positively to the Group’s financial performance in FY2014 and FY2015.
The project is in line with the Group’s strategy to offer value-added engineering solutions and drilling equipment for the oil and gas industry. In the past year or so, SBI Offshore has added senior engineers who are highly experienced in design, operations and management of drilling services. Building on the latest contract for design and engineering, the Company will pursue opportunities to offer related services and capabilities in the construction of onshore and offshore drilling rigs to the Consortium and other international players in the sector.
In line with its strategy to pursue larger-scale offshore or land-based oil and gas projects as well as to provide integrated solutions for drilling equipment and systems, the Group announced on 2 July 2014 that it would form a 70%-held joint venture with U.S.-based Axon Energy Products Inc.- a global oilfield equipment manufacturing company.
Chan Lai Thong, Executive Chairman of SBI Offshore, said, “The design and engineering contract is significant as it underscores our ability to move up the value chain and secure higher-value projects in new markets. We are confident that it will augur opportunities for drilling equipment and our own entry as a specialist player in large-scale mainstream oil and gas projects.”