Singapore rig accident injures 89 workers
BY KYUNGHEE PARK Bloomberg News
Tuesday, December 04, 2012
12/04/12 at 6:52 AM
An under-construction oil rig tilted over during a test Monday at a Sembcorp Marine Ltd. shipyard in Singapore, injuring 89 workers.
Six people were admitted to hospitals for treatment and observation after the accident, which took place at a Jurong Shipyard Pte. yard, Singapore-based Sembcorp said in a statement.
Work on the unit has been halted as the company and the Singapore Ministry of Manpower investigate.
Sembcorp said in an earlier statement that 90 workers were injured and four were admitted to hospitals.
The rig tipped after the jack-up mechanisms on one of its three legs failed, the ministry said, citing a preliminary review. The mechanisms raise and lower a rig's platform.
The accident could delay deliveries for Sembcorp, the world's second-biggest builder of jack-up rigs, and cause extra costs because of the need for repairs. The rig-maker is already contending with new competition as Chinese shipbuilders try to break into the market amid slumping demand for vessels.
"The risk for Sembcorp because of this could be forced delays on projects to do safety reviews," said Vincent Fernando, an analyst at Religare Capital Markets in Singapore. "There could also be impact on profitability due to either penalty payments for late delivery or just costs."
Shares of Sembcorp fell 2.2 percent, reversing earlier gains, in Singapore trading. That was the biggest drop since Nov. 6, the day after it reported a 48 percent decline in quarterly profit.
The Ministry of Manpower said in an earlier statement on its website that one worker was in a critical condition while another 22 were seriously injured.
Sembcorp held $1.75 billion of orders for jack-up rigs, which are used in shallow waters, as of Nov. 5. That was 18 percent of its total backlog. Competition from Chinese and Korean yards for offshore projects has intensified and threatens margins, Singapore-based Keppel Corp., the world's biggest oil-rig maker, said in October.
Yangzijiang Shipbuilding Holdings Ltd., based in Jiangyin, China, announced Monday a $170 million order for a jack-up rig, its first contract for an offshore unit.
Original Print Headline: Shipyard rig falters, injures 89
An oil rig sits at a tilt in a Singapore shipyard Monday. Sembcorp Marine Ltd. said 89 workers were injured after the jack-up mechanisms on one of its three legs malfunctioned. WONG MAYE-E / Associated Press