25 Oct 2006

SembCorp Marine’s Subsidiary Sembawang Shipyard Awarded Drillship Upgrading Contract By Neptune Marine Oil & Gas Limited

Sembawang Shipyard, a wholly-owned subsidiary of SembCorp Marine, has secured a S$30 million contract from Neptune Marine Oil & Gas Limited, Scotland, for the upgrading and reactivation of drill ship, Neptune Explorer. Neptune Marine Oil & Gas Limited is a growing quality offshore drilling contractor with product focus on drill-ships and other mobile offshore assets and with market focus on Mediterranean, Black Sea, Middle East, India and South East Asia.

Sembawang Shipyard was awarded this contract on the strength of its capabilities and established track record in repairs and refurbishment of offshore rigs and drill ships and more importantly, on its ability to meet Neptune Marine Oil & Gas Limited’s schedule and QHSE (Quality, Healthy, Safety and Environment) standards.

The Neptune Explorer is expected to undergo 6 months of major upgrading and reactivation work in the shipyard from end October 2006. Major work-scope contracted to Sembawang Shipyard includes an estimated 1,700 tons of steel renewal and new installation, complete overhaul and repairs to the marine systems and rebuilding of accommodation spaces.

Mr Idar A. Iversen, President and Chief Executive Officer, Neptune Marine Oil & Gas Limited, said of the award “The selection of Sembawang Shipyard to carry out Phase II of this important project is based on the shipyard’s track record in meeting schedule deadlines and quality and safety commitments. The shipyard has also clearly demonstrated its track record to handle sophisticated offshore work, which requires strong engineering, procurement and project management capabilities. We are confident that both Neptune Marine and Sembawang Shipyard will be able to work closely towards the successful upgrading and reactivation of our drill ship Neptune Explorer.”

Mr Ong Poh Kwee, Managing Director of Sembawang Shipyard said “We are very pleased to be chosen by Neptune Marine Oil & Gas Limited for this major reactivation project. This award marks yet another milestone achievement for Sembawang Shipyard in the highly specialized offshore drillships’ upgrading market. We thank Neptune Marine for their trust and confidence in our project management know-how for this sophisticated project. Sembawang Shipyard hopes that this project will be the start of a good and long-term relationship with Neptune Marine Oil & Gas Limited.”

Sembawang Shipyard is proud to have successfully upgraded a series of offshore jack ups and drillships since 2002 for established and major offshore operators. Besides the Neptune Explorer, the shipyard is currently upgrading 2 other drillships and constructing a Baker Marine designed Pacific Class 375 Deep Drilling jack-up rig.

Barring unforeseen circumstances, SembCorp Marine expects a positive contribution to its earnings. However, the 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, 2006.

About Sembawang Shipyard

Sembawang Shipyard Pte Ltd, a wholly-owned shipyard of SembCorp Marine, has one of the largest integrated ship repair and conversion facilities in Southeast Asia. With more than three decades of experience and proven track record in ship repair and offshore conversions, the shipyard’s world-class reputation is based on the company’s commitment to superior customer service, innovative solutions, quality, and strict Health Safety, Security and Environment standards.

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. Sembawang Shipyard’s other long-term partners includes Alaska Tanker Company (USA), ASP Shipmanagement Group (UK), ConocoPhillips Inc (USA), Euronav Shipmanagement B.V. (Belgium), Exmar Shipmanagement B.V. (Belgium), Northwest Shelf Shipping (Australia), TESMA (Norway, Denmark, Singapore), TMT Ltd (Taiwan) and V Ships Group (Monaco).

Besides the traditional sectors of tankers and bulkers, Sembawang Shipyard is a recognised specialist in the niche markets of FPSO/FSO conversions, offshore vessels conversions and newbuildings, complex lengthening conversions, passenger ship conversions / refurbishment, chemical tankers, liquefied gas carriers, offshore rigs and navy ship repairs.

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