Jurong Shipyard, the wholly-owned subsidiary of Sembcorp Marine, has secured a $130 million contract to carry out pre-conversion works on the Very Large Crude Carrier (VLCC), the MT Suva, to be renamed FPSO P62 for Petrobras Netherlands B.V.

The scope of work involves the hull structure steel renewal, fabrication and installation of new steel work, blasting and painting works, renewal, fabrication and installation of piping, supply of new equipment and extensive refurbishment of accommodation. The vessel is scheduled for completion in 2Q 2011.

The FPSO P62 is part of the 4th Phase of the Roncador Field development plan. It will be installed in about 1,600 metres water depth at the Roncador Field, which is one of the largest oil fields discovered offshore Brazil.

FPSO P62 will be capable of processing more than 180,000 barrels of oil per day, injecting more than 250,000 barrels of water per day, 6 million cubic metres of production gas and with a storage capacity of 1,600,000 barrels of oil. It is designed to remain at the field for up to 25 years without drydocking.

The above contract is not expected to have material impact on the earnings and net tangible assets per share of Sembcorp Marine for the current financial year.