26 Jul 2006

SembCorp Marine’s Brazilian Shipyard Mauã Jurong Secures US$550 Million Gas Platform Construction Contract

SembCorp Marine is pleased to announce that its Brazilian shipyard, Mauā Jurong has secured an Engineering, Procurement and Construction Contract worth US$550 million from Companhia Mexilhāo do Brazil (CMB) for the construction of PMXL-1, a Fixed Gas Production Platform to be installed offshore Brazil.

Construction of the Platform will commence immediately with delivery ex-yard scheduled not later than November 2008. Upon installation by the owner, Mauā Jurong will undertake the hook-up and commissioning of the Platform at the offshore location until “first gas” production at month 36 of the Contract and assisted operation up to month 45.

The Platform comprises of a 12,000 tonne deck including a Natural Gas Production Plant designed to the capacity of 15 Million Cubic Meters per day, with the topsides deck seating on a 180 meters tall tubular structure jacket (weighting 10,500t) duly seated and piled to the seabed through 3,150t tubular steel piles (up to 120m long). The jacket and piles are to be fabricated by Mauā Jurong under owner’s furnished design. The topsides deck and process plant will be purpose-designed by Mauā Jurong in conformance with the Front End Engineering Design as provided by the owner.

PMXL-1 is to be installed at Brazil’s Santos Basin, a fast growing front at the Brazilian Offshore Oil & Gas scenario, with very important Natural Gas findings in recent years. The platform location at the Mexihāo Gas Field which is located 165 miles off the town of Caraguatatuba in the leading industrial state of Sao Paulo, with 172 meters of water depth and a centralized network of gathering pipelines from a set of neighboring producing fields. From PMXL-1, the produced gas will be conveyed through submarine pipelines to the shore gas processing plant and forward to the National Pipeline Grid, both operated by Petrobras – Petrǒleo Brasileiro S.A., Brazil’s national oil company.

CMB is a Project company formed to undertake an Asset Development arrangement with Petrobras.

Mexilhāo Natural Gas production project is a key component of Brazil’s strategy to expand the domestic sources of Natural Gas (mainly Santos and Espirito Santo Basin’s as well as that of associated gas from the huge oil production wells at Campos Basin) in order to ensure the consolidation of such energy source at the Country’s energy matrix, partially supplemented by foreign sources in neighboring South American countries.

Barring unforeseen circumstances, Mauā Jurong expects a positive contribution to its earnings from the contract, the largest single contract secured by the company since its incorporation in 1999. However, the contract is not expected to have any material impact on the earnings and net tangible assets per share of SembCorp Marine for the current financial year.

About Mauā Jurong (Brazil)

A 35 per cent owned joint venture shipyard between Jurong Shipyard, a subsidiary of SembCorp Marine and 65 per cent owned by Synergy Group, a Brazilian managed company, Mauā Jurong’s core activities include ship repair, shipbuilding, fabrication of topside production modules, conversion and construction of floating production and drilling units for deep-water oil and gas exploration and production.

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

Top