Seatrium awarded letter of intent for deepwater new-build production unit

SEATRIUM : 5E2 0% was awarded a letter of intent by BP Exploration & Production for a deepwater new-build production unit in the US Gulf of Mexico. 

On Wednesday (Jun 5), the offshore and marine specialist said it is expected to carry out certain early engineering works on BP’s Kaskida floating production unit (FPU) project, pending a finalised definitive contract for engineering, procurement, construction and commissioning work. 

The engineering, procurement and construction contract award will be subject to mutually agreed terms and conditions, management approval, and the final investment decision by BP, the group added. 

The Kaskida project, a greenfield development, is located in the Keathley Canyon area of the Gulf of Mexico, about 250 miles south-west of New Orleans. 

“This award reflects our expertise and successful track record of delivering complex FPUs,” said William Gu, executive vice-president, oil and gas (international) of Seatrium.

The letter of intent is not expected to have any material impact on the company’s net tangible assets and earnings per share for the financial year ending Dec 31. 

Shares of Seatrium ended Tuesday 0.6 per cent or S$0.01 lower at S$1.78.