SINGAPORE– Sembcorp Marine Rigs & Floaters Pte. Ltd. has signed an agreement with Varg L.L.C., a wholly-owned subsidiary of Teekay Offshore Partners L.P., for engineering, procurement, and construction works related to the modification, repair, and life extension of the FPSOPetrojarl Varg.
Scheduled for completion in July 2020, the work scope includes detailed engineering, fabrication, installation, and integration of the topsides process skid; overhauling of existing internal turret and power generation; and repair and life extension of the vessel’s hull, tanks, and various systems onboard.
Once finalized, the contract is estimated to be worth $166 million.
The FPSOPetrojarl Varg will be operated by Alpha Petroleum Resources Ltd. for deployment at the Cheviot field development and the Peel satellite accumulation, both of which are located within the UK continental shelf blocks 2/10B, 2/15A, and 3/11B in the North Sea.
The effectiveness of the agreement remains subject to Alpha Petroleum Resources satisfying certain conditions precedent, including (i) finalizing its debt facilities with a consortium of lenders and (ii) the approval by relevant authorities of its final field development plan for theCheviot field.