(EnergyAsia, April 8 2011, Friday) — Sembawang Shipyard, a wholly-owned subsidiary of Singapore’s Sembcorp Marine, said it has signed a long-term alliance contract with Canada’s Teekay Marine Services to provide ship-repair, refurbishment, upgrading and related marine services for its fleet of 137 ships.

Teekay Marine Services is a subsidiary of Teekay Corporation, an international leader in energy shipping which serves the world’s leading oil and gas companies.

This long-term maintenance and refit alliance contract signed in Vancouver, by Graham Westgarth, President of Teekay Marine Services and Wong Lee Lin, Sembawang Shipyard’s executive director, commits to offer the repairs, refurbishment and upgrading of Teekay’s fleet of vessels docking in Singapore to Sembawang Shipyard.

It also supports joint planning, information and experience sharing, thus leveraging complementary resources to achieve sustainable targets in the areas of health, safety, security and environment (HSSE), quality, cost-efficiency and timely deliveries. This partnership will lead to process-based improvements in refits and ship maintenance using best practices of both companies.

Captain Westgarth, President of Teekay Marine Services said:

“This ship-repair alliance is between two companies which are keen on having continuous improvement in their organisations thus enhancing their competitiveness. The alliance will benefit both organisations as we will maximise our ships’ trading days through safe repairs, better planning, quality enhancement and maximisation of resources utilisation.

“Through such processes, we will be able to carry out our dry dockings and upgrades in a safe, efficient and cost-effective way. The selection of Sembawang Shipyard as our exclusive alliance partner in Singapore is in line with Teekay’s global refit strategy to work towards achieving such continuous improvement in repair processes and implementing best practices across Teekay’s entire fleet.

“Sembawang Shipyard is internationally recognised for its safety track record and as one of the most technically competent and efficient repair yards in the world. We have had many positive experiences with Sembawang Shipyard, which laid the foundation for us to enter into this long-term partnership arrangement with the Shipyard. We look forward to a long and successful partnership with Sembawang Shipyard.”

Ms Wong said: “Teekay is a world leader in global shipping and we are indeed pleased to be Teekay’s chosen partner. The Teekay-Sembawang Shipyard alliance is the result of a close collaborative relationship between two like-minded organisations with the intent of accomplishing mutually compatible goals. This innovative alliance enables synergistic value creation resulting from the co-sharing of knowledge, skills and experiences on the technical repairs, the operation of the ships and systems improvements.

“Sembawang Shipyard has a good track record in delivering alliance benefits to our partners. Our alliance structure and processes will bring about continuous improvements in the way Teekay ships are being repaired and upgraded. We look forward to a long-term partnership which will deliver visible mutual benefits to both companies, especially in the areas of HSSE, quality, planning and cost efficiency.”

Sembawang Shipyard said it expects to refit and upgrade between six and eight Teekay vessels each year. In February 2011,

Sembawang Shipyard repaired Teekay’s shuttle tanker, Navion Savonita, which is operated by Teekay Brazil.

Another three vessels are scheduled for repairs in Sembawang Shipyard in the first half of 2011.