Yangzijiang Shipbuilding (Holdings) said 78%-owned Jiangsu Yangzijiang Offshore Engineering Co. has clinched its debut offshore oil and gas order.
JYOEC has entered into a construction contract with Explorer I Limited, which is wholly-owned by Mena Offshore Investments and managed by Offshore Logistics (Asia Pacific) (OLAP), to construct and deliver one unit of Letourneau Super 116E Class design self-elevating Mobile Offshore Jackup Drilling Rig worth US$170 million ($207 million).
This contract includes an option to construct one additional identical unit.
There are still many permutations to this. Project Delivery to me is a competitive advantage especially for a complex project like this.
People may pay a premium for complex design and good project management.
But at times, cost becomes a factor. I say the turning point for KepCorp and Semb Marine is when these China and Korean ship builders develop the expertise in these two areas. Then the margins will start to shrink.