CFA Society Singapore
SINGAPORE (Dec 5): Sembcorp Marine’s wholly-owned subsidiary, Sembcorp Marine Rigs & Floaters, has signed a letter of intent (LoI) with Shell Offshore for the construction of the hull and topside of, as well as the integration of, a single topside module known as the Vito floating production unit (FPU).
The final contract award will depend on the project being sanctioned by Shell and its partners.
The Vito FPU is supported by a four-column submersible floating hull, and will be designed with a throughput capacity of 100,000 bpd of oil and 100 MMSCFD of gas.
In a Tuesday filing, SembMarine says that should the project move forward, the Vito FPU will be a new facility located in the Mississippi Canyon approximately 150 miles south of New Orleans, Louisiana, US, in a water depth of 4,050 ft.
It does not expect the LoI to have a material impact on the group’s net tangible assets (NTA) and earnings for the year ended Dec, 2017.
Shares in SembMarine closed 1 cent lower at $1.91 on Tuesday.