Sembcorp Marine has signed an Engineering and Construction contract with Heerema Offshore Services B.V. (HOS) to build the world's largest semi-submersible crane vessel (NSCV).

The agreement worth approximately USD1 billion follows an earlier exclusive letter-of-intent signed between Jurong Shipyard Pte Ltd, which is SCM’s wholly owned subsidiary, and HOS in March, 2015.

The new-building will be the largest dual-fuel semi-submersible crane vessel in the world with length of 220 meters (720 feet), width of 102 meters (335 feet) and displacement of 273,700mt.

Image: Sembcorp Marine

The new DP3 semi-submersible crane vessel is designed for the installation and decommissioning of major offshore facilities all around the world. The NSCV’s technical equipment includes two Huisman heavy-lifting offshore cranes, which have a lifting capacity of 10,000 MT each and a large reinforced work deck area.

The vessel will be built at the Sembcorp Marine Tuas Boulevard Yard and it is scheduled to be delivered in the fourth quarter of 2018.

Phase I of Tuas Boulevard yard spans 73.3 hectares. It is equipped with four VLCC drydocks with a total dock capacity of 1.55 million deadweight tons.

Phase II spans 34.5 hectares and will include a steel fabrication facility and another three dry docks, including an offshore dock measuring 255 meters (836 feet) by 110 meters (360 feet) where the new semi-submersible crane vessel will be built.

Jan Pieter Klaver, the Heerema Marine Contractors’ Chief Executive Officer commented:

“We strongly believe in the successful cooperation between Sembcorp Marine and Heerema to build the world’s largest semi-submersible crane vessel. The new vessel's two tub mounted cranes and dual fuel engines will enable Heerema Marine Contractors to offer unparalleled installation and decommissioning services. This will meet our long-term strategy of delivering the best possible services to the global offshore oil and gas industry."

William Gu Wei Guang, Head of Sembcorp Marine Rigs & Floaters, said:

“We are thankful and pleased that HOS has placed their trust and confidence in Sembcorp Marine to deliver the world’s largest heavy lift vessel. With our new facilities at Tuas that boost deeper quayside draft and wider dock space, we are confident that we will be able to meet our customer’s expectations. This is also in alignment with our strategic vision to penetrate into the deep water draft market segment and also serves as a great testimony to our continuous commitment in providing one-stop, tailor-made solutions to our customers.”

The investment in Sembcorp Marine’ new-build is not expected to have any material impact on the net tangible assets and earnings per share of the company for the year ending December 31, 2015.

Heerema Offshore Services B.V. is a subsidiary of Heerema Marine Contractors Nederland Holding SE (HMC), a world leading marine contractor in the international offshore oil and gas industry. HMC excels at transporting, installing and removing offshore facilities. These include fixed and floating structures, subsea pipelines and infrastructures in shallow waters, deep and ultra-deep waters. The company is headquartered in Leiden, the Netherlands.

Sembcorp Marine provides innovative engineering solutions to the global marine and offshore industry, drawing upon more than 50 years of track record. Sembcorp Marine customers include major oil companies, drilling contractors, shipping companies as well as owners and operators of floating production units. They operate shipyards strategically located in Singapore, India, Indonesia, the United Kingdom and Brazil.