08 Dec 2007

Jurong Shipyard Fast-tracks Delivery of West Sirius Using Award-winning Proprietary Rig Building Techniques

Shipyard’s first turnkey project is on track for delivering first of three Ultra-deepwater 6th Generation Semi-submersible Rigs to Seadrill.

The first of a series of three high-performance, identical design 6th generation semi-submersible rigs – West Sirius – built by SembCorp Marine’s subsidiary Jurong Shipyard for Norway’s Seadrill Limited was named today by Mrs C J Hadden, wife of Mr Steve Hadden, Senior Vice President of Devon Energy Corporation.

The naming of West Sirius marks a major milestone for Jurong Shipyard. This is the shipyard’s first turnkey rig-building project which encompasses engineering, procurement, construction, integration and commissioning (EPIC) elements.

The US$390 million turnkey rig-building contract was first awarded to Jurong Shipyard in June 2005, followed by the second unit at US$404 million in August 2005 and the third unit at US$535 million in May 2007. To be built based on the Friede & Goldman (F&G) ExD design, West Sirius is on track for delivery to owner in the first quarter 2008.

This sophisticated oil-rig was built using Jurong Shipyard’s proprietary award-winning “Load-out & Mating-in-dock” technique, in which the upper and lower hulls were simultaneously constructed and subsequently skidded and mated in the drydock.

The “Load-out & Mating-in-Dock” technique received the Singapore Innovation of the Year award in 2003 from Spring Singapore.

At the same time, the yard employed its newly developed “Transverse Skidding” technique to build and assemble the second rig, West Taurus in close succession. The combination of these two innovative techniques enabled the fast-track construction and sequential assembly of multiple semi-submersibles, while meeting high standards of quality, safety and precision. This pioneering rig-building technique accelerated the delivery time for the semi-submersibles by 4 months, enabling Jurong Shipyard to deliver 2 semi-submersible rigs in a year.

Jurong Shipyard was accorded the Innovation Excellence Award in 2007 by Spring Singapore, in recognition of the yard’s innovation-driven culture and pro-active efforts to encourage creative thinking and problem-solving. The “Transverse Skidding” and “Load-out & Mating-in-Dock” techniques are important showcases of this culture.

At the naming ceremony, Mr Wong Weng Sun, Managing Director of Jurong Shipyard and President & Chief Operating Officer of SembCorp Marine, said: “The award-winning proprietary rig-building technique for constructing multiple semi-submersibles, deployed to fast-track the delivery of West Sirius represents an industry breakthrough and underscores a sharpening of our competitive edge and turnkey capability as a leading player in the global offshore and marine industry.”

“Our success is only possible with the exceptional cooperation and collaboration received from our valued vendors, contractors and partners, Seadrill and Devon, and their faith in our ability to deliver,” added Mr Wong.

West Sirius will be chartered to Devon Energy for operations in the Gulf of Mexico upon delivery in the first quarter of 2008. This highly sophisticated rig, which incorporates the latest in deep sea drilling technologies, will be capable of drilling wells of up to 37,500 feet while operating in dynamic positioning mode in water depths of up to 10,000 feet.

Engineered for stability and versatility, West Sirius is equipped with 18,000 square feet of usable deck space, with the ability to carry a variable deck load of up to 8,000 tonnes. This rig is designed with an operational displacement of 43,400 metric tons at 17 metres draft and 46,750 metric tons at 20 metres draft (see attachment for more technical details).

At the naming ceremony, Mr Kjell E Jacobsen, Chief Executive Officer and President of Seadrill Limited, said: “The supply-demand balance for oil and gas will remain high. This will result in high energy prices in the long term. The level of activity in the oil and gas industry will have to increase significantly both in the exploration and production in order to meet the ever-increasing demand for oil and gas. As a result more rigs will be

About Seadrill Limited

Seadrill Limited is a Bermuda-based international offshore drilling contractor with main offices in Norway, Singapore and the UK. Seadrill’s versatile fleet includes harsh- environment semi-submersibles, jack-ups, shallow and deep water tender rigs and deepwater drillships. In addition, Seadrill provides platform drilling, well intervention and engineering services. The company has some 5,400 skilled and highly competent employees, many of these with more than 30 years’ experience, representing over 25 nationalities, operating in 15 countries on five continents.

In addition to the 3 semi-submersible rigs on order with Jurong Shipyard, Seadrill is also building a Baker Marine Pacific Class 375 Deep Drilling Jack-up Rig at PPL Shipyard, another subsidiary of SembCorp Marine.

About Devon Energy Corporation

Devon Energy Corporation is one of the world’s leading independent energy company engaged in oil and gas exploration and production. With operations in United States and Canada, the company also explores for and produces oil and natural gas in select international areas. In addition, it also owns natural gas pipelines and treatment facilities, making it one of North America’s larger processors of natural gas liquids. Devon is a Fortune 500 company and is included in the S&P 500 Index.

About Jurong Shipyard Pte Ltd

Jurong Shipyard, a fully-owned subsidiary of SembCorp Marine, is a leading shipyard offering integrated services and customised solutions in ship repair, shipbuilding, ship conversion, rig building and offshore engineering to a worldwide clientele. Apart from its proven track record in the building and servicing of jack-up and semi-submersible rigs, Jurong Shipyard is also a global leader in the EPC conversion of tankers to floating, production, storage and offloading units (FPSOs), floating storage tankers (FSOs) and floating production units (FPU).

West Sirius is the third high-performance ultra-deepwater semi-submersible rig built by Jurong Shipyard since it first ventured into rig building in 2002. Earlier in 2005, the yard had delivered to GlobalSantaFe Corporation two units of 5th generation F&G ExD design ultra-deepwater semi-submersible rigs constructed using its “Load-out & Mating-in-dock” technique.

Besides the 6 semi-submersible rigs with a total contract value of US$2,733 million on order, other rig projects in progress at the yard include the building up of two baredeck hulls to semi-submersibles, as well as the construction of 2 Baker Marine Pacific Class 375 (BMC Pacific 375) deep-drilling jack-up rig units, 1 harsh-environment jack-up rig and a heavy-lift jack-up barge. One unit of the BMC Pacific 375 jack-up rig was delivered to owner in 3Q 2007.

For analyst & media enquiries, please contact:

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

West Sirius – A Landmark Success
One Team: Quality, Safety & Reliability

Principal Specifications:

Length 98.82 m
Beam 78.68 m
Height(Keel to Main Deck) 36.0 m

Lower Hull
Length 98.82 m
Beam 20.12 m
Depth 8.54 m

Length 15.86 m
Beam 15.86 m
Corner Radius 3.96 m

Upper Hull
Length 74.42 m
Beam 74.42 m
Height 8.6 m

Operating Draft 20.0 m
Accommodation 180 persons
Water Depth 10,000 feet
Drilling Depth below Rotary 37,500 feet

West Sirius is the first of three 6th Generation Friede & Goldman ExD design ultra-deepwater dynamic-positioning semi-submersible rigs that Jurong Shipyard is building for Norway’s Seadrill Limited under a turnkey contract using its breakthrough “Load-out & Mating-in-Dock” technique.