SembCorp industries posts 56% drop in third quarter profits
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. REUTERS

Sembcorp Marine on Friday said its unit Sembcorp Marine Rigs & Floaters has signed a letter of intent with Norwegian oil and gas company Statoil for an engineering, procurement and construction contract estimated at US$490 million (S$665.8 million).

Under the contract, SembMarine's rigs and floaters unit will provide turnkey services on newbuild floating production storage and offloading hull and living quarters for the Johan Castberg field development. The actual awarding of the contract has yet to take place.

Statoil is the world's largest offshore operator, with 20500 employees and operations in over 30 countries worldwide. The company sells and transports crude oil, natural gas, petroleum, and chemical products.

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, the company said.

Shares in Sembcorp Marine gained 0.5 percent to S$1.96 on the Singapore Exchange.