07 Feb 2003

SembCorp Marine’s subsidiary, Sembawang Shipyard awarded a S$34 million Complete Outfitting and Commissioning Project for an Offshore Dynamic Positioned Pipelay Construction Barge

Sembawang Shipyard Private Limited (Sembawang Shipyard), a wholly-owned subsidiary of SembCorp Marine Ltd (SembCorp Marine), has secured a major contract from Consolidated Projects Ltd (CPL) to complete, outfit and commission an Offshore Dynamic Positioning Class 3 pipe-lay/construction barge, with fleet member Jascon 5 and built to American Bureau of Shipping Classification rules with notation ABS + A1 Barge + PAS + DPS3 “Pipelay”. The vessel will be operated by Offshore Contractors Ltd (OFFCON).

Sembawang Shipyard was awarded this specialized contract against strong international competition based on the shipyard’s strength and established track record in the highly specialised and sophisticated field of conversion and modification work on offshore vessels, which demands strong project management skills, high Health, Safety and Environment (HSE) standards, proven Engineering, Procurement and Construction (EPC) expertise and strong organisational capabilities.

One of the most challenging aspects of this major contract requires the shipyard to undertake part of the basic design and detailed Engineering, Procurement and Completion of the project, i.e. detailed engineering, outfitting and commissioning of a new barge hull that is now currently being constructed in China, into a DPS 3 self-propelled pipe-laying and construction barge. The new hull, measuring 140m in length, 40.6m in breadth and 8.75m in depth, is expected to arrive in the shipyard in March 2003 and henceforth, will undergo 8.5 months of completion work in Sembawang Shipyard.

Due to the fast track nature and tight schedule of the project, a strong and experienced Project Management Team will be critical to manage significant aspects of the project integrating high-end complete 3-D modeling of the vessel structure as well as outfitting, installation and commissioning. This contract also calls for the detailed engineering of specialised utility systems such as the HVAC, fuel, compressed air, water and the complete electrical, hi-tech power distribution systems.

Other major work includes the installation of owner furnished equipment such as SAS pipe laying equipment, Huisman 800T heavy lift crane, a TTS/Norlift 36 T pedestal crane, 5 Caterpillar diesel generator sets, 8 HRP Azimuth thrusters with Caterpillar engines, a Kongsberg Simrad Dynamic Positioning System and a pipelay stinger and A frame. The shipyard will also undertake the complete engineering and outfitting of an accommodation deckhouse for a complement of up to 350 persons.

In the words of Mr Kasper Bosma, Project Manager of Consolidated Projects Limited, “Sembawang Shipyard is competitive in terms of price, quality and experience. The shipyard has demonstrated its track record to handle sophisticated offshore work, which requires strong Engineering, Procurement and Construction capabilities. We are confident that both Consolidated Projects Ltd and Sembawang Shipyard will be able to work closely towards the successful completion and commissioning of the Jascon 5”.

Mr Ong Poh Kwee, Executive Director of Sembawang Shipyard, said “We are very pleased to be chosen by Consolidated Projects Ltd for the Jascon 5 project, as this marks another milestone achievement for Sembawang Shipyard in the area of offshore projects. We thank CPL for its trust and confidence in our project management know-how, design, engineering and commissioning capabilities". Upon completion, the Jascon 5 will be deployed worldwide, sailing to the jobsites at 8 knots under its own power.

Barring unforeseen circumstances, SembCorp Marine expects a positive contribution to its earnings from the contract. Revenue from the contract will be recognised according to the SembCorp Marine’s revenue recognition policy based on the percentage of completion method measured by reference to the value of work performed relative to the total contract value over the duration of the contract.

About Sembawang Shipyard

Sembawang Shipyard is a wholly-owned shipyard of SembCorp Marine, the marine engineering arm of SembCorp Industries Ltd. Sembawang Shipyard 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 superior customer service, innovative solutions, quality, and strict Health Safety and Environment standard.

Sembawang Shipyard has more than three decades of experience and proven track record in ship repair and offshore conversions, servicing an average of 200 vessels of all types annually for an international clientele in the oil, bulk, chemical and gas trades. In particular, Sembawang Shipyard is the chosen exclusive alliance shipyard for Shell International Trading and Shipping Company Limited (UK), BP Shipping (UK), BHP Billiton (Australia) and Jo Tankers AS (Norway), for the repairs and refits of their fleets in the Far East. Additionally, Sembawang Shipyard’s other long -term partners includes Tschudi & Eitzen Shipmanagement AS (Norway) and Alaska Tanker Company (USA).

Besides the traditional sectors of tankers and bulkers, Sembawang Shipyard is a recognised specialist in niche markets of passenger ship conversions/refurbishment, FPSO/FSO conversions, offshore vessels conversions, complex lengthening conversions, chemical tankers, liquefied gas carriers, dredgers, offshore rigs and navy ship repairs. Besides regular drydocking and repair work, the shipyard is currently carrying out the jumboisation of a dredger, which when completed, will be the world’s largest dredger, and the conversion of a DP Class 3 crane barge. In July 2002, Sembawang Shipyard became the first shipyard in South East Asia to achieve ISO14001 Environmental System Award by Det Norske Veritas Ltd. The award is a firm endorsement of the shipyard’s commitment and efforts towards environmental preservation and protection.

For media & investor enquiries, please contact:

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

For further information or clarification the project, please contact:

Ms Lee-Lin Wong
General Manager
Sembawang Shipyard Pte Ltd
Tel : 65-67506021
Fax: 65-6781025

Email: leelin@sembmarine.com