Offshore staff
(Singapore) -- SembCorp Marine Ltd. has acquired two fabrication yards in order to expand its capabilities for rig building, the company says.
The total value of both deals is $116 million.
In the first agreement, SembCorp subsidiary Sembawang Shipyard Ptd. Ltd. acquired Sembawang Corp. Ltd.'s 86 ha on northern Singapore.
The second sale and purchase agreement for the SMOE acquisition involves the signing of an agreement between the Company and SembCorp Utilities Pte. Ltd.
to acquire SCU's entire equity interest in SMOE Pte. Ltd.
The acquisition of SemBeth and SMOE is in line with SembCorp Marine's strategy to expand and grow its rig building and offshore engineering business as well as to expand its core business of ship repair/upgrades, shipbuilding and ship conversion, says the company.
SemBeth, a company incorporated in May 1988 to take over the rig and shipbuilding activities of the Singapore subsidiary of Bethlehem Steel Corp. a rig building yard operational in the 1970s to 1980s.
The acquisition of SemBeth and the 86 ha of SemBeth land, workshops, quays and docks by the Company's subsidiary SSPL will effectively allow SembCorp Marine to own and reorganise the SemBeth land to expand its rig building and offshore engineering business.
It will also allow the flexibility to plan, invest and execute infrastructure to meet new business requirements and market demands and to provide a cushion from rental fluctuations.
SMOE which controls the three subsidiaries of SMOE Indonesia (100%), PT SMOE (90%) (which is held as a stake through SMOE Indonesia) and SCE Pte Ltd (51%), is involved in engineering and construction of offshore platforms and floating facilities for the global oil and gas industry.
SMOE owns two fabrication facilities, one located within SemBeth land and the other within the Kabil Industrial Zone on the eastern shore of Batam Island, Indonesia, comprising 30 ha of fabrication facility and 275 m waterfront land.
The acquisition of SMOE by will strengthen SembCorp Marine Group's position as a player in the offshore oil and gas sector, capitalising on SMOE's fabrication facilities and deriving cost savings by capitalising on the strategic value of land and positive synergies between SMOE and the SembCorp Marine Group.
7/13/06
