STEng – BT

ST Engg wins $30m contract

SINGAPORE Technologies Engineering’s marine unit, ST Marine, sealed a $30 million design, construction and outfitting contract to build a 68-metre seismic survey vessel for Swire Pacific subsidiary Swire Pacific Offshore Operations (SPO).

SPO is one of the world’s most established offshore support providers with over 20 new vessels on order for delivery till 2011. It has done extensive planning for this newbuild vessel and will be providing the vessel’s basic design and major equipment, including the seismic survey equipment. The vessel will be in compliance the American Bureau of Shipping classifications, and will also have Ice Class Notation C.

ST Marine has also been slowly building up its expertise and reputation in the speciality vessel market. Just last month, it secured a contract to convert a platform supply vessel to a geotechnical survey vessel and in July, it got another job to build and outfit a diving support vessel.

Construction for the latest contract is expected to start in May and delivery is scheduled for the second half of 2010. The deal is not expected to have any material impact on the consolidated net tangible assets per share and earnings per share of the group for the current financial year.

‘As one of the global leaders in the offshore marine industry, we remain committed to continuously improving the standards in technical excellence and client-oriented services. Marine services in the seismic survey industry, like exploration and development support, is an exciting field in which we have now established a firm footing. Given ST Marine’s sterling reputation, I believe that we have found a reliable partner that is more than able to deliver a top quality product,’ said SPO deputy managing director Brian Townsley.

‘We are very honoured to partner Swire Pacific Offshore to augment its modern offshore fleet. This contract is a significant milestone in ST Marine’s relationship with SPO and we hope to partner SPO further in its dynamic growth. Through this contract, we shall be building our first seismic survey vessel in Singapore, leveraging our experience of having repaired and converted almost 100 seismic survey vessels,’ said ST Marine president Chang Cheow Teck.

ST Engineering shares closed seven cents lower at $2.29 yesterday.

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