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A Sembcorp employee stands near the turret of Tullow Oil's newly completed Floating Production, Storage and Offloading vessel (FPSO) Prof. John Evans Atta Mills at Sembcorp Marine's Jurong Shipyard in Singapore January 20, 2016

Sembcorp Marine said its wholly-owned subsidiary, Sembcorp Marine Rigs & Floaters secured a US$490 million contract from Norway's Statoil Petroleum AS.

The contract involves engineering, procurement and construction of Hull and Living Quarters for a newbuild floating production, storage and offloading vessel (FPSO).

This contract follows the signing of a Letter of Intent between the two parties, announced on November 10.

To be deployed at the Johan Castberg field development in the Barents Sea, about 240km from Hammerfest, Norway, the FPSO will have a hull approximately 55 meters wide and 295 meters long. It will be self-contained for harsh-environment operation, with living quarters accommodating up to 140 personnel, the company said in a regulatory filing.

The project is scheduled for completion in the first quarter of 2020.

The contract is not expected to have any material impact on the net tangible assets and earnings per share of the group for the year ending December 31, 2017.

Statoil, the largest explorer and producer off Norway, explores, transports, refines, and trades oil and natural gas. The company explores oil in Europe, Africa, the Middle East, Asia, and the Americas.

Shares in Sembcorp Marine rose 0.5 percent at S$1.89 on the Singapore Exchange. The stock has gained 31 percent over an year.