Sembcorp Marine on Tuesday said its unit Sembcorp Marine Rigs & Floaters signed a letter of intent with Shell Offshore for the construction of the hull and topside as well as the integration of the Vito floating production unit (FPU).
If the project moves forward, the Vito FPU will be a new facility located in the Mississippi Canyon, about 150 miles south of New Orleans, Louisiana, U.S., the company said in a regulatory filing.
The Vito FPU is designed with a throughput capacity of 100,000 bpd of oil and 100 million standard cubic feet per day of gas.
Shell Offshore, a subsidiary of the Anglo-Dutch company Royal Dutch Shell, owns and operates oil rigs, manufactures drilling equipment, and produces crude oil and natural gas.
Final contract award will be dependent upon Shell and its partners sanctioning the project, the company said.
The letter of intent 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.
Shares in Sembcorp Marine ended down 0.5 percent at S$1.91 on the Singapore Exchange. The stock has gained 32 percent over an year.