TIDMCRO
RNS Number : 6554S
Creon Resources PLC
04 December 2012
For Immediate Release 4 December 2012
Creon Resources Plc
("Creon" or "the Company")
Portfolio Update: $170m drilling rig order secured
The directors of Creon (AIM: CRO), the resources infrastructure
investment company, are delighted to announce that Jiangsu
Yangzijiang Offshore Engineering Co. Ltd. ("YZJOE") has entered
into a contract valued at US$170 million with Explorer I Limited to
construct and deliver one unit of a Le Tourneau Super 116E Class
design self-elevating Mobile Offshore Jack up Drilling Rig. Creon's
46.45% owned joint venture with China's third largest ship building
group, Yangzijiang Shipbuilding (Holdings) Pte Ltd (SP:YZJ), has a
40% holding in YZJOE. Explorer 1 Limited is 100% owned by Mena
Offshore Investments Limited ("MENA") and managed by Offshore
Logistics (Asia Pacific) Pte Ltd ("OLAP").
Delivery of the Rig is anticipated in the second quarter of
2015. It will be built to ABS Classifications and capable of
drilling to 30,000 feet in sea depths of up to 350 feet. The rig
will be fully equipped with state of the art drilling equipment and
will have accommodation for 120 people.
Construction of the offshore mobile drilling rig will take place
at the existing yard of Creon's joint venture partner, Yangzijiang
Shipbuilding, in Jiangsu Province, China.
None of the directors or substantial shareholders of the Company
have an interest, direct or indirect, in the contract.
Glen Lau, CEO of Creon, said:
"This agreement bears testimony to the strength of our joint
venture partner - Yangzijiang Shipbuilding - our ability to source
significant contracts, and the demand in the market for modern
mobile drilling vessels to replace older and shallow water drilling
rigs that are being phased out of the industry.
"Creon will be able to leverage off our partner's existing world
class state of the art yard and infrastructure whilst
simultaneously allowing our joint venture business, YZJ Offshore,
to develop a new facility at the recently acquired shore line land
in Taicang outside Shanghai.
"We are confident that we will be able to build a significant
order book through YZJ Offshore and Jiangsu Yangzijiang Offshore
Engineering Co. Ltd."
Mena Offshore Investments Limited's CEO, Mr Dino Pereira,
commented:
"We were impressed by the professionalism of the management of
Yangzijiang Group, its state-of-the-art yard and facilities. We
believe that Yangzijiang is one of the finest shipbuilders in the
world and should be able to migrate and leverage its experience and
expertise to the jack up rig construction business through YZJ
Offshore. We are likewise impressed by the highly qualified and
experienced management personnel that have been assembled to run
the offshore division. We look forward to forging a close working
relationship with the team."
For further information please contact:
Creon Resources plc
Glen Lau (CEO) Tel: +65 6224 6766
Tel: + 44 (0) 20 7583 8304
Nominated Adviser & Broker
Daniel Stewart
Paul Shackleton/James Felix Tel: + 44 (0) 20 7776 6550
GTH Communications Limited
Toby Hall/Suzanne Johnson-Walsh Tel: + 44 (0) 20 3103 3900
About Creon Resources plc
Creon Resources Plc is an investment company whose policy is to
invest principally but not exclusively in the resources and/or
resources infrastructure sectors.
In July 2012, the Company entered into a joint venture with the
multi-billion dollar, Singapore listed, China based shipbuilding
company, Yangzijiang Shipbuilding (Holdings) Pte Ltd ("YZJ
Holdings"), to invest into the joint venture company, YZJ Offshore
Engineering Pte Ltd ("YZJ Offshore"), a Singapore registered
company set up by YZJ Holdings to be a leading player in the design
and construction of marine offshore oil and gas vessels (jack-up
and semi-submersible rigs). YZJ Offshore has a 40% holding in the
Chinese mainland business, Jiangsu Yangzijiang Offshore Engineering
Co. Ltd ("YZJOE").
To date, Creon has invested US$15.33 million into the joint
venture, with YZJ Holdings and its associates having invested a
further US$14.67 million. The majority of the funds have gone
towards securing land rights to approximately 1.6 million square
metres of prime shorefront land in Taicang, some 50 miles north of
Shanghai on China's east coast.
YZJ Offshore and YZJOE provide marketing, procurement, front end
engineering and design, and management consultancy services for the
construction, fabrication and repair of oil and gas marine vessels
and platforms.
The Directors believe that the offshore marine rig vessel market
is a highly attractive one, underpinned by sustained high global
demand and a high oil price environment, the age and phasing out of
existing rigs in the market, and the increasing requirement for
"floater" structures that are able to operate/drill in deeper water
conditions.
ABOUT OFFSHORE LOGISTICS (ASIA PACIFIC) PTE. LTD.
Offshore Logistics Asia Pacific ("OLAP") was incorporated in
Singapore in 1997. It is one of the biggest surface to sub-sea oil
and gas equipment supplier to the Asian market and is owned and
managed by its CEO, Mr. Dino Pereira.
OLAP is an industry leader in the supply of equipment for the
oil and gas offshore marine industry. It maintains a wide range of
surface and subsea equipment that can be effectively deployed
on-site professionally within a short time. The company also
provides repairs and maintenance as well as storage services and is
the regional representative and sole agent for some renowned
products and services in the oil and gas sector.
OLAP is strategically located within the Loyang Industrial Park
in Singapore with convenient access to the Loyang Offshore Supply
Base that serves as the premier marine hub in Singapore and caters
primarily to the oil and gas offshore marine industry.
ABOUT MENA OFFSHORE INVESTMENTS LIMITED
Mena Offshore Investments Limited is a fund managed by OLAP, and
domiciled in Labuan, Malaysia, primarily to own assets in the oil
and gas market.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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