Singapores SembCorp Marine acquires US shipyard

Singapore oil rig manufacturer SembCorp Marine has completed the purchase of a Texas-based shipyard in a move expected to boost its presence in the oil-producing US Gulf Coast region. SembCorp Marine said its subsidiary PPL Shipyard has acquired a 100% stake in Sabine Industries, Inc and subsidiaries Sabine Offshore Services, Inc and Sabine Shipyards, Inc. It also bought a 25 percent stake in Sabine Vessels, Inc.

The acquisitions cost a $6.4 million. SembCorp Marine is one of two Singapore oil rig builders reaping a bonanza as higher oil prices boost the search for new oil and gas deposits worldwide. The company and rival Keppel FELS Ltd together account for about 80% of the world market for oil rigs, according to industry analysts.

Both hope to benefit from repair contracts for offshore oil rigs and production platforms damaged by Hurricanes Katrina and Rita in the US Gulf of Mexico region. SembCorp Marine is expanding its global profile, adding the US shipyard to its facilities in Singapore, China and Brazil.