Bloomberg News

Sembcorp Marine Gains on First Drill Ship Order: Singapore Mover

February 07, 2012

Feb. 6 (Bloomberg) -- Sembcorp Marine Ltd., the world’s second-biggest oil-rig maker, climbed to the highest in almost a week in Singapore trading after winning its first drill ship order for $793 million.

Sembcorp Marine advanced 2.3 percent to S$4.96 at the close in Singapore, the highest level since Jan. 31. That trimmed its decline over the past 12 months to 8.3 percent, compared with the Straits Times Index’s 7.9 percent slide in the same period.

The Singapore shipyard won the contract from Sete Brasil Participacoes SA to build the drill ship to develop oil and gas fields discovered around the coast of Brazil. Petroleo Brasileiro SA plans to invest $224 billion through 2014 to develop reserves along the country’s coast to boost production.

“Brazilian rig spending is finally trickling in after a long delay,” Nancy Wei, an analyst at UOB-Kay Hian Pte in Singapore, wrote in a note today.

The drill ship will be delivered no later than the second quarter of 2015 from its yard in Brazil, Sembcorp Marine said in the statement today.

Petroleo Brasileiro, or Petrobras as the Brazilian state- owned company is known, said in December that it will start talks directly with Ocean Rig do Brasil Ltda. and Sete Brasil to get better offers after it canceled a bidding to lease 21 drill rigs to be built in Brazil.

--Editors: Garry Smith, Frank Longid

To contact the reporter on this story: Kyunghee Park in Singapore at kpark3@bloomberg.net

To contact the editor responsible for this story: Neil Denslow at ndenslow@bloomberg.net


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