Stolt Offshore-Sapura JV to operate newbuild deepwater construction vesselNews // September 1, 2005
Stolt Offshore has entered into a co-operation agreement to establish a joint venture (JV) with SapuraCrest Petroleum, the leading Malaysian oil service company, to take over the build and operation of Sapura 3000, a new-build heavy lift and pipelay vessel designed to be the most advanced deepwater construction ship in the growing Asia Pacific region.
Incorporation of the joint venture is subject to Malaysian governmental approval, which is expected by the end of 2005, and finalisation of documentation.
Sapura 3000 is a US$200 million new-build dynamically positioned derrick pipelay vessel, with dual capabilities for conventional shallow water pipelay and very deepwater construction projects.
The vessel is presently under construction in China and is planned to be in service in early 2007.
SapuraCrest Petroleum has built up a strong market share in the Malaysian conventional construction and pipelay, drilling, survey and maintenance markets and is part of the larger Sapura group of companies.
In a statement released on Augist 30th, Stolt Offshore said it believes the deepwater SURF market in Asia Pacific is expected to grow by an average of 15 per cent over the next five years.
The company is targeting a number of deepwater construction projects particularly in Malaysia, Indonesia and Australia in which the Sapura 3000 would play a major role.
The 50/50 JV with SapuraCrest Petroleum will be reported as net income in non-consolidated joint ventures. The financing will be finalised through joint venture borrowings, with a target gearing of 70 per cent, or approximately US$150 million.
Once the vessel is in full operation, full year results are expected to add up to US$150 million per annum to Stolt Offshore's revenue level through SURF and deepwater projects.
Tom Ehret, Chief Executive Officer, said: "This is a significant move for Stolt Offshore into what will be a leading position in the growing deepwater construction market in the Asia Pacific region. In SapuraCrest, we have found the right partner with outstanding local commercial knowledge and by upgrading the Sapura 3000 initial specification, we are pleased to add Stolt Offshore's deepwater technologies and expertise to this joint venture."
"We have a robust business plan to which our partner contributes significantly by means of an annual 150 day charter from a subsidiary of SapuraCrest Petroleum for shallow water work in Malaysian waters. The introduction of the Sapura 3000 into an established conventional market with a small but rapidly growing SURF and deepwater market, in many ways mirrors our introduction of the highly successful Seaway Polaris to the conventional and SURF markets in West Africa," said Mr Ehret.
"With the new-build order for the Sapura 3000 having been placed in December 2004, we have found a way to jointly own and operate this vessel without the need of introducing an additional key construction asset to this region. In summary, our joint venture is building the right asset at the right time to give us a unique competitive position in this emerging deepwater market," Ehret concluded.
Sapura 3000 vessel specifications:
- Length 151.2m/Beam 37.8m
- Builders: Sembawang Shipyard in consortium with Huisman special lifting equipment
- Crane: mast crane with 3,000 short tons lift capacity
- Typical pipelay capabilities: Conventional steep S-Lay, with J-Lay for steel catenary risers, 36in pipe in 400m, 20in pipe in 1,500m and 12in pipe in 2,000m.
- Accommodation for 330 people
- Dynamic Positioning - Class 2