21 Jul 2014

Sembcorp Marine’s Sembawang Shipyard Secures Contract Worth About S$600 Million from Saipem SA for the Conversion of Two FPSOs for Kaombo Project in Offshore Angola

Singapore, 21 July 2014 : Sembcorp Marine’s wholly-owned subsidiary Sembawang Shipyard has secured a Floating Storage Production Offloading (FPSO) conversion contract worth about S$600 million from Saipem SA, France for the conversion of Two FPSOs for the Kaombo Project in Offshore Angola.

Sembawang Shipyard was awarded this milestone contract on the strength of its capabilities and established track record in the field of FPSO conversion, modification and upgrading work. Under the contract, the Shipyard is responsible for the conversion of two Very Large Crude Carriers (VLCCs) sister ships into 2 turret-moored FPSOs for the Kaombo project located in offshore Angola, approximately 150 km from the coast.

Major works also include refurbishment of the VLCCs, construction engineering, the fabrication of flare, helideck, upper turret and access structure, integration of the topsides modules (which will be fabricated at Saipem’s Indonesian Yard) and lower turret components, and pre-commissioning of the FPSOs. The two converted FPSO units, owned by Total, will each have an oil treating capacity of 115,000 barrels per day, a water injection capacity of 200,000 barrels per day, a 100 million scfd gas compression capacity and a storage capacity of 1.7 million barrels of oil.

Mr. Ong Poh Kwee, Deputy President of Sembcorp Marine and Managing Director of Sembawang Shipyard, said: “The award is a strong endorsement of our Shipyard’s capabilities in the highly specialised field of FPSO conversion, modification and upgrading work. We thank Saipem for selecting Sembawang Shipyard to execute this prestigious contract and for their trust and confidence in our high Health, Safety, Security and Environment (HSSE) standards, quality, project management know-how, engineering design, outfitting and commissioning capabilities. We are fully committed to work closely with all partners involved in this milestone project for a successful outcome. The buoyant offshore market offers exciting opportunities for both the Shipyard and owners and we look forward to a long-term collaborative partnership with Saipem.”

The first VLCC, Olympia, is expected to enter Sembawang Shipyard in third quarter 2014 while the second VLCC, Antartica, will be in the Shipyard in first quarter 2015. The total project duration will be 32 months.

The above contract is not expected to have any material impact on the consolidated net tangible assets per share and earnings per share of Sembcorp Marine for the year ending December 31, 2014.

About Sembcorp Marine

Sembcorp Marine is a leading global marine and offshore engineering group with over
50 years of experience and proven capabilities in repair, specialised shipbuilding, building of high-specification jack-up rigs, fast-track construction of ultra-deepwater
semi-submersible rigs, conversion of floating production and storage facilities as well as the engineering and construction of offshore platforms.

Headquartered in Singapore, Sembcorp Marine has a network of six shipyards in Singapore – Jurong Shipyard, Sembawang Shipyard, SMOE, PPL Shipyard, Jurong SML and Sembmarine Integrated Yard @ Tuas. The 73.3-hectare Sembmarine Integrated Yard @ Tuas Phase I facility commenced operations in August 2013. The Group’s strategic presence spans Indonesia, China, India, United Kingdom and Brazil.

About Sembawang Shipyard

Sembawang Shipyard, a wholly-owned subsidiary of Sembcorp Marine, has one of the largest integrated ship repair facilities in Southeast Asia. The shipyard’s world-class reputation is based on the company’s commitment to high quality standards, Health, Safety and Environment standards, timely delivery, superior customer service and innovative solutions.

Besides its proven expertise in the sectors of tankers, bulk carriers and container / cargo vessels, the shipyard is also recognised as a specialist in the niche markets such as passenger ship conversion / upgrading/ repairs, LNG carrier repairs, FPSO conversion, offshore conversion and newbuilding, damage repairs and repair of chemical tankers, liquefied gas carriers and navy ships.

About Saipem

Saipem is a global leader in the Engineering & Construction and Drilling businesses, with a strong bias towards oil & gas-related activities in remote areas and deep-waters.

For media and analysts enquiries, please contact:

Ms Lisa Lee
Senior Vice President
Investor Relations & Communications
Tel No : (65) 6262 7107
Fax No: (65) 6261 0738
Email : lisa.lee@sembmarine.com
www.sembmarine.com

For the complete PDF version of this release, please click here.

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