FLNG market witnesses Sembcorp winning FPSO contract for Karish field

Leading marine & offshore engineering group, Sembcorp Marine Rigs & Floaters, has apparently secured a vessel contract from TechnipFMC.  If reports are to be relied on, this subsidiary of Sembcorp Marine, in collaboration with the UK company, would be undertaking the procurement, engineering, and construction of the hull & living quarters for a newly build FPSO (Floating production storage and offloading) vessel. Experts believe that the marine giant may have taken this initiative to consolidate its stance in global FLNG market.

Sources state that the contract includes the integration and fabrication of various topside modules along with installations of owner-furnished equipment. During a filing with the Singapore exchange, Sembcorp Marine brings to notice the exact portfolio of the FPSO vessel.  The vessel’s hull is approximately of 227 meters length and 50 meters width, having a total oil storage capacity of 800,000 barrels and a gas production capacity of 8 billion cubic meters per annum. Considering the massive potential of the vessel, experts are of the opinion that the project certainly falls among one of the biggest initiatives that have been lately undertaken across FLNG market.

Working hand in hand with TechnipFMC in such a big project, Sembcorp Marine seems to have made up its mind to challenge the core players of FLNG market. For the record, the proposed vessel would be deployed at Energean Oil& Gas’s flagship Karish and Tanin fields in the Eastern Mediterranean, which is around 90 kms offshore Israel.

The contract is expected not to have any material impact on the per share earnings of the Group and net tangible assets until the end of the last quarter of 2018. Allegedly, SembMarine’s shares closed at S$2.21.

As per the official confirmation, the project is scheduled to be completed in the fourth quarter of 2020.