31 Jul 2002

SembCorp Marine in US$357 million Petrobras P-50 FPSO deal

Jurong Shipyard, a subsidiary of SembCorp Marine today announces that it has signed a US$244 million contract to convert a large tanker into a giant floating, production, storage and offloading unit (FPSO). In addition, Jurong Shipyard is also finalising a US$113 million contract for topside module works for the same project. This will be one of the largest contracts secured by Jurong Shipyard.

The contract entails the conversion of a 280,000-dwt very large crude tanker (VLCC) "Felipe Camarao" for Petrobras Netherlands BV (PBNV), a subsidiary of Brazil’s giant state energy company Petrobras. The conversion works will be undertaken together with its overseas shipyard in Brazil, Maua Jurong S.A., which will also fabricate the topside modules for the same project.

The FPSO, to be named P-50 is expected to begin production in 2004. On completion, the P-50 will be one of the largest converted FPSO units in the world with a production capacity of 180,000 barrels of oil per day and six million cubic metres of natural gas a day. The FPSO will be installed in the Albacora Leste oilfield in Brazil’s biggest oil-producing area, the Campos Basin.

The engineering, procurement and construction contract will be executed in two parts. The marine hull conversion will be done in Jurong Shipyard, while the engineering, fabrication, installation, integration and commissioning of the topside modules, including those to be supplied by Petrobras, will be carried out in Brazil by Maua Jurong.

The tanker will undergo life-extension to enable her to operate in offshore oilfields for 25 uninterrupted years. The converted and upgraded FPSO hull will be fitted with new accommodation blocks, offshore rising balconies, process systems, state-of-the-art electrical and control systems, and a prototype mooring system called the DICAS mooring.

The P-50 FPSO will be among the many successful conversion jobs completed by Jurong Shipyard for Petrobras. Over the last few years, the shipyard has delivered the P-37 FPSO, the P-38 FSO and the P-40 FPU to Petrobras, all of which are operating successfully in the Campos Basin, Brazil. Jurong Shipyard is currently converting the P-43 FPSO for the Barracuda oilfield and the FPSO Fluminense that will be installed in the Bijupira-Salema oilfield. Maua Jurong will supply all the topside modules with a combined weight in excess of 28,000 tonnes for both the P-43 and P-48 FPSOs.

About SembCorp Marine and Jurong Shipyard

SembCorp Marine, the marine engineering arm of SembCorp Industries, is a leading global marine engineering group specialising in ship repair, shipbuilding, ship conversion and offshore engineering. With a combined docking capacity of 2.2 million dwt, SembCorp Marine offers one of the largest ship repair, ship conversion, offshore and associated marine facilities through eight strategically located shipyards comprising four in Singapore, two in China and one each in Indonesia and Brazil.

Jurong Shipyard, a wholly owned subsidiary of SembCorp Marine, is a leading yard in ship repair, ship conversion and offshore engineering as well as a niche player in specialist ship construction. Its recent projects include the design and construction of product/chemical tankers of about 11,500 dwt and container carriers of 1,078 TEU to 2,500 TEU. Other shipbuilding projects include 90,000 dwt tankers, multi-purpose cargo vessels, bulk carriers, ocean going tugs, ice breaking tugs and cable laying vessels.

Jurong Shipyard is also currently building two units of the world’s most advanced generation of semi-submersible oilrigs for GlobalSanteFe Drilling, one of the largest drilling contractors in the world, and has an option to build another two units.

For media and investor enquiries, please contact:

Ms Judy Han
Vice President
Investor Relations & Communications
Tel : (65) 6262 7203
Fax : (65) 6261 0738
E-mail: judy@jspl.com.sg

Submitted by Lim Seh Li, Company Secretary on 25/03/2002 to SGX

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