08 Mar 2006

PPL Shipyard On Track to Deliver Its First In-house Proprietary Designed Baker Marine Pacific Class 375 Jack-up Rig

PPL Shipyard, a subsidiary of SembCorp Marine is on track to deliver its first in-house proprietary designed Baker Marine Pacific Class 375 Deep Drilling Offshore Jack-up rig to joint venture company, Kristiansand Drilling Pte Ltd (Kristiansand) and Deep Drilling I Pte Ltd.

Kristiansand is a single purpose joint venture company formed between Sembawang Shipyard (S) Pte Ltd, a subsidiary of SembCorp Marine and Deep Drilling I Pte Ltd, a wholly owned subsidiary of Sinvest ASA. The Skeie Group owns 35.5 per cent of Sinvest ASA, a public company listed on the Oslo Stock Exchange. SembCorp Marine holds 82 per cent equity stake in Kristiansand with the Skeie Group holding the remaining 18 per cent.

On delivery in mid-March 2006, Sinvest ASA has the option to purchase the 82 per cent equity interest owned by SembCorp Marine. The option is exercisable within 18 months from the date of delivery.

Guest-of-Honour, Mrs Lim Hwee Hua, Minister of State for Finance and Transport officiates the christening of Deep Driller I this morning at PPL Shipyard in the presence of Mr Goh Geok Ling, Chairman of SembCorp Marine and distinguished guests and customers from overseas.

Deep Driller I is the first of a series of thirteen jack-up rigs to be built based on a design researched and developed by PPL Shipyard and its subsidiary Baker Marine, a company based in Houston, Texas. Serving as the in-house design centre of excellence, Baker Marine has a track record of having designed 57 rigs now operating worldwide. Deep Driller I is a showcase of rig building expertise built up from an impressive portfolio of proven jack-up rig designs and the shipyard’s commitment to leading-edge evolutions in rig technology. The high specification BMC375 Pacific Class jack-up rig has the ability to operate in water depths of up to 375 feet and features increased deck capacity over competing rigs in the same league. Equipped with the time-tested Baker Marine Jacking System, Deep Driller I will be able to withstand storms and offer movement flexibility without the use of a rack chock system. It has the capacity to drill high pressure and high temperature wells of over 30,000 feet and has accommodation for 120 men.

Mr Ong Tian Khiam, Managing Director of PPL Shipyard said, “The confidence and trust that Sinvest ASA and its subsidiary Deep Drilling I placed with us for this jack-up rig design paved the way for a series of jack-up rigs ordered. The BMC375 Pacific Class rig was designed to not just meet, but exceed customer expectations. We are looking forward to the success of the inaugural charter of Deep Driller I in the Indian Ocean.”

Upon delivery, Deep Driller I will be chartered to Hardy Exploration & Production (India) Inc for a Drilling Contract in block CY-OS/2 offshore the East Coast of India for a period of two wells, with an estimated duration of around 130 days. The second contract will commence in direct continuation after Hardy Exploration & Production (India) Inc. for a period of eighteen months plus two optional periods of six months each.

About PPL Shipyard

PPL Shipyard, a subsidiary of SembCorp Marine Ltd, is a rig-building yard with a proven track record in the building and servicing of jack-up and semisubmersible rigs. To-date, it has built 26 jack-ups and 4 semi-submersibles.

About Kristiansand Drilling

Kristiansand Drilling is a single purpose joint venture company formed by Sembawang Shipyard (S) Pte Ltd, a subsidiary of SembCorp Marine and Deep Drilling I Pte Ltd, a wholly owned subsidiary of Sinvest ASA to own Deep Driller I during the period of construction in PPL Shipyard. The Skeie Group owns 35.5 per cent of Sinvest ASA, a public company listed on the Oslo Stock Exchange. Its businesses include long-term financial and strategic investments relating to the offshore industry. It has recently exercised an option to build another jack-up rig. Including this rig, Sinvest ASA will have a total of three rigs under construction in PPL Shipyard.

For media & analysts enquiries, please contact:

Judy Han (Ms)
Senior Vice President
Investor Relations & Communications
Tel No : (65) 6262 7203
Fax No : (65) 6261 0738
Email : judy@sembcorpmarine.com.sg

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