28 Feb 2005

SembCorp Marine’s Subsidiary Jurong Shipyard Secures US$50 Million (S$82 Million) Contract

Jurong Shipyard, a subsidiary of SembCorp Marine has been awarded an approximately US$50 million (S$82 million) contract from Houston based Atlantia Offshore. This base contract amount is for the fabrication of Atlantiaís new deep draft semi-submersible hull design for the Independence Hub gas-processing platform in the ultra deep waters of the Gulf of Mexico.

The semi-submersible hull, measuring 232 feet in length and width and 160 feet in height will be built by Jurong Shipyard under a very fast track schedule that entails some 10,000 metric tonnes of steel fabrication, installation of large marine systems, installation of hull electrical and instrument equipment and systems, and fabrication and erection of hull marine piping systems. Work commenced in February 2005 with delivery scheduled in the first quarter of 2006.

The 105-foot deep-draft hull will accommodate a two-level production deck capable of processing 850 million cubic feet of gas per day. When completed, the Independence Hub platform will be located at the Mississippi Canyon Block 920 in a water depth of 8,000 feet.

Mr. Don Lee, Senior General Manager in charge of Offshore said "̀We are very excited to be working with the industry leader Atlantia Offshore in providing fast track, cost effective solutions for deep water frontier production. This development project represents a very unique working partnership involving multiple operators and we are very happy to be part of the team. Jurong Shipyard is totally committed to making this project a success capitalizing on its recent experience on completing two ultra-modern deep water semi-submersible drilling rigs Development Driller I and II."

Dr. Dwayne Breaux, VP Operations of Atlantia Offshore said "̀Atlantia is very pleased to be working with Jurong Shipyard on this record setting project. Jurong’s performance on the large semi-submersible drill rigs shows both commitment and innovation, the qualities we at Atlantia look for in our fabrication partners. Atlantia has full confidence that Jurong will execute this project with Safety first and still deliver a quality project on time."

A consortium of five independent exploration and production companies known as the Atwater Valley Producers, a midstream energy company, Enterprise Products Partner, LP, and Cal Dive International, Inc. have come together to facilitate the development of this multiple ultra-deepwater, natural gas discoveries in the previously untapped Eastern Gulf of Mexico.

Barring unforeseen circumstances, SembCorp Marine expects a positive contribution to its earnings from the contract. However, this contract is not expected to have any material impact on the net tangible assets and earnings per share of SembCorp Marine for the year ending December 31, 2005.

About Jurong Shipyard

Jurong Shipyard, a wholly owned subsidiary of SembCorp Marine, is a leading shipyard offering integrated solutions in ship repair, shipbuilding, ship conversion, rig building and offshore engineering. It has recently delivered one unit of the world’s most advanced generation of semi-submersible rigs to GlobalSantaFe with the second unit scheduled for delivery in the first quarter of 2005.

About Atlantia Offshore

Atlantia Offshore Limited is a member of IHC Caland group. Based in Houston, Texas, it is a leading full service provider of deepwater floating platforms for the oil and gas industry. IHC Caland group is a holding company of international marine technology-oriented companies, working mainly as suppliers to the offshore oil service, dredging and shipping industries on a global basis.

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