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Fri 22 Jan 2010 09:27 AM

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Dubai World unit wins vessel building contract

Drydocks World signs deal to build a large vessel for Scottish Highland Intl.

A subsidiary of Dubai-based Drydocks World said on Thursday it signed a contract to build a large offshore construction vessel for Scottish Highland International, part of Coastline Maritime.

Southeast Asia Pte Ltd, which operates four shipyards in Singapore and Indonesia's Batam Island and has fourteen offshore supply vessels under construction, will build a 210-metre ultra large offshore construction vessel, Drydocks said in a statement.

Drydocks World is part of troubled Dubai coglomerate Dubai World, but is not included in its parent company's $22 billion restructuring plans.

The new vessel will be larger than the company's previous two - one still under construction and another delivered in April and operating in the Gulf of Mexico.

Dubai World said in December Drydocks had sufficient financial capability to service its debt.

The ship building arm of Dubai World has a $1.7 billion loan maturing in November 2011. Dubai Drydocks, signed a $2.2 billion loan in October 2008, involving 15 lenders, according to Thomson Reuters.

Bookrunners on that loan included HSBC and Standard Chartered. (Reuters)

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