STEng – BT

ST Engg’s US unit gets repeat order for articulated tug barge

SINGAPORE Technologies (ST) Engineering’s US shipyard unit VT Halter Marine has clinched a repeat order to outfit and commission a second 350,000-barrel-capacity articulated tug barge (ATB) unit for OSG Ship Management.

Work will commence in November and is expected to be completed by mid-2010. VT Halter Marine was contracted in April by OSG to undertake similar work on another 350,000-barrel ATB, expected to be delivered by the end of this year. The two units were reportedly uncompleted jobs removed from Mobile-based Bender Shipbuilding by OSG in March due to delays in the delivery schedule.

ST Engineering declined to reveal contract values but they are not expected to have any material impact on its consolidated net tangible assets per share and earnings per share for the current financial year.

However as an indication, VT Halter received a contract to build four smaller units of a similar type of vessel for US$240 million in September 2006. This was a full construction job and included the cost of owner-furnished equipment. The 199.65m by 32m ATBs will be the largest ever built by VT Halter Marine. These state-of-the-art ATBs will be used to perform lightering services and equipped with specialised equipment to meet stringent vapour balancing regulations in the Delaware Bay, where the vessels will trade.

‘Delivering these vessels to an important customer is a top priority for OSG. We selected VT Halter Marine due to their experience in constructing similar types of ships and the company’s high quality of operations, which extends to the quality of vessels they have built, the skills and experience of the shipyard workers and management’s commitment to working with us on this high-profile project,’ said Robert Johnston senior vice-president, OSG Ship Management.

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