The TA KEROperator - Tanker Operator

INDUSTRY - SINGAPORE REPORT
Singapore – a major
shiprepair hub
Lying strategically between the
MEG/Suez and the Far East,
deviation time is little, or none at
all. The vast anchorages and a
leading international airport lend themselves
to all manner of ship supplies, crew changes,
bunker supplies and afloat repairs, plus other
services.
In addition, companies such as Sembcorp
and Keppel have built up considerable
expertise in repair and conversions, as well as
offshore construction.
For example, in February Sembcorp
Marine’s subsidiary Sembawang Shipyard
secured major longevity, upgrading and
damage repair contracts worth Sing$130 mill,
reinforcing its reputation as a world-leading
shiprepair yard, the company said.
These include the following contracts:
The first was a longevity project awarded
by North West Shelf LNG Venture, one of the
shipyard’s Favoured Customer Contract (FCC)
clients, for the life extension of its LNGC,
orthwest Snipe.
The six partners in the North West Shelf
Venture gas interests are BHP Billiton
Petroleum (North West Shelf), BP
Developments Australia, Chevron Australia,
Japan Australia LNG (MM), Shell
Development (Australia) and Woodside Energy.
orthwest Snipe is scheduled to arrive in the
shipyard in September 2010 to undergo
sophisticated life extension work, which includes
ballast tanks blasting and coating work, hull
structural enhancement, integrated automation
system renewal, HVAC and refrigeration system
renewal, cargo and ballast valve actuator system
replacement and boiler system renewal.
This will be Sembawang Shipyard’s second
longevity contract undertaken for the North
West Shelf LNG Project following the
successful completion of the life extension
work on orthwest Sanderling in August 2009.
Sembawang Shipyard’s has been
particularly successful is winning specialised
LNGC life extension work.
The second contract was awarded by
Sembawang Shipyard’s regular customer from
Taiwan. This was for the repair of major fire
damage to a 2005-built product tanker.
With a contract value estimated in the region
For many years, Singapore
has been a major hub for
shiprepair and conversions.
of Sing$35 mill, the scope of work includes
major steelwork renewal, complete renewal of
the entire accommodation block, major
electrical and instrumentation work in the
engine room, mechanical work and pipework.
Work on this product tanker recently started.
Besides the above, other major contracts
secured recently by Sembawang Shipyard
included the refit and upgrade of two drillships.
Long term business
Sembawang also announced the renewal of its
long-term contract with the Eitzen Group.
Signed on 28th January 2010 in Singapore,
this long-term contract was the reaffirmation
of the close relationship enjoyed between the
two companies, Sembawang said
The Eitzen Group controls some 100 ships
trading worldwide and under this contract, the
company will continue to send some six to
eight ships to the yard annually for scheduled
and upgrading repairs.
However, the shipyard said that the above
contracts were 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
31st December, 2010.
Sembawang Shipyard is a wholly-owned
subsidiary of Sembcorp Marine and has one of
the largest integrated shiprepair facilities in
Southeast Asia. The shipyard's reputation is
based on the company's commitment to high
HQSE standards, timely delivery, superior
customer service and innovative solutions, the
company said.
Besides its expertise in the tankers, bulk
carriers and container/cargo vessel sectors, the
shipyard is also a specialist in niche markets,
such as LNGCs, passenger ship
conversions/upgrades, FPSO conversions,
offshore conversions and newbuildings,
damage repairs, as well as chemical tanker,
LPG carriers and naval vessels.
Rival Keppel also has a number of VLCC
dimensioned drydocks and is involved in
FPSO, FSO and other conversion projects. It
has built up expertise in the area of rig
building and is constructing an FSO for
Lukoil for use in the Caspian Sea.
Drydocks World
There are several other repair and shipbuilding
concerns on the island republic, including
Drydocks World-Southeast Asia, part of the
huge shiprepair/shipbuilding Dubai-based
combine.
Marine activities are focused on four
shipyards in Singapore and Indonesia, namely,
Drydocks World – Graha, Nanindah, Pertama
and Singapore, which between them offer 29
building berths, eight floating docks, and a
specialised rig building yard.
Plans are also in place to expand operations
further on Batam Island with the construction
of a new yard PT Batam Maritime Centre.
Drydocks World – Southeast Asia was
established in April 2008 as a result of the
purchase of Labroy Marine and Pan United
Marine shipyards and is a member of the
Dubai World group of companies.
Furthermore, the integrated shipyards are
supported by the group’s own ship chandlery
service available 24/7.
Following the problems associated with
Dubai World, the group said that Drydocks
World and its subsidiaries were not included in
the proposed restructuring process for Dubai
World and its real estate related subsidiaries.
In a statement issued last November, the
group said that it had been in constructive
dialogue with its lenders for several months
and its financial profile did not require it to be
included in the more wide-ranging
restructuring process envisaged.
Drydocks World had reacted promptly to
the challenges of the global economic
slowdown, which have impacted the shipping
sector globally. The company has
implemented extensive operational
improvements over the past year.
The group continued to have sufficient
financial capacity to service its debt and
remained well positioned to take advantage of
the expected improvements in the shipbuilding
and offshore industries in the coming years,
the statement concluded.
TO
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TANKEROperator March 2010