Sembcorp Marine’s subsidiary Jurong Shipyard has signed two contracts for US$540 million each to build two drillships with options for three additional units from a subsidiary of Transocean Ltd (Transocean).

Scheduled for delivery in 2Q 2017 and 1Q 2018, the drillships will be built based on Jurong Shipyard’s proprietary Jurong Espadon III design which represents the next generation of high specification drillships with advanced capabilities for operational efficiency and ultra-deepwater development drilling operations worldwide. Specifically designed for enhanced drilling operations, the drillships are equipped with state-of-the-art drilling facilities, a large moon pool to cater for a larger riser angle and bilge boxes designed for superior motion characteristics. The drillships also feature larger deck space with enclosed riser bay and round mud pits inside the hull for operational efficiency and safety. Equipped with DP-3 (Dynamic Positioning Class 3) capabilities, the drillships will be capable of operating at 12,000 ft water depth and drilling to depths of 40,000 ft, with accommodation facilities for a crew of 220 personnel.

Mr William Gu, General Manager of Jurong Shipyard’s Offshore Division said "We are pleased that Transocean has chosen Jurong Shipyard as a strategic partner to build their drillships with us. We would like to thank Transocean for selecting us and for their confidence in our Jurong Espadon III design and capabilities."

Transocean currently owns and operates six drilling rigs built by Sembcorp Marine’s yards, including three jack-ups and one semi-submersible delivered by PPL Shipyard and two semi-submersibles built by Jurong Shipyard."

The contracts are not expected to have any material impact on the consolidated net tangible assets per share and earnings per share of Sembcorp Marine for the year ending December 31, 2014.

About Sembcorp Marine

Sembcorp Marine is a leading global marine and offshore engineering group with 50 years of experience and proven capabilities in repair, specialised shipbuilding, building of high-specification jack-up rigs, fast-track construction of ultra-deepwater semi-submersible rigs, conversion of floating production and storage facilities as well as the engineering and construction of offshore platforms.
Headquartered in Singapore, Sembcorp Marine has a network of six shipyards in Singapore – Jurong Shipyard, Sembawang Shipyard, SMOE, PPL Shipyard, Jurong SML and Sembmarine Integrated Yard @ Tuas. The 73.3-hectare Sembmarine Integrated Yard @ Tuas Phase I facility commenced operations in August 2013. The Group’s strategic presence spans Indonesia, China, India, United Kingdom and Brazil.

About Jurong Shipyard

Jurong Shipyard, a fully-owned subsidiary of Sembcorp Marine, is a leading shipyard offering integrated services and customised solutions in repairs & rig upgradings, ship conversion, rig building and offshore engineering to a world-wide clientele. Apart from its proven track record in building a diverse range of mobile offshore rigs from shallow to deepwater and harsh environment, Jurong Shipyard is also a global leader in the EPC conversion of tankers to floating production storage and offloading units (FPSOs), floating storage and offloading vessels (FSOs) and floating production units (FPUs).

About Transocean

Transocean (NYSE: RIG) (SIX: RIGN) is a leading international provider of offshore contract drilling services for oil and gas wells. The company specializes in technically demanding sectors of the global offshore drilling business with a particular focus on deepwater and harsh environment drilling services, and believes that it operates one of the most versatile offshore drilling fleets in the world.

Transocean owns or has partial ownership interests in, and operates a fleet of, 79 mobile offshore drilling units consisting of 46 high-specification floaters (ultra-deepwater, deepwater and harsh-environment drilling rigs), 22 midwater floaters and 11 high-specification jackups. In addition, including the newbuild drillships announced herein, the company has nine ultra-deepwater drillships and five high-specification jackups under construction.