28 Feb 2005

SembCorp Marine’s Subsidiary, Sembawang Shipyard in Partnership with Huisman Special Lifting Equipment B.V., Secures a US$150 Million Contract to Construct a Self-Propelled DP2 Heavy Lift Derrick Pipelay Vessel from SapuraCrest Petroleum Berhad, Malaysia

Sembawang Shipyard, a wholly-owned subsidiary of SembCorp Marine, in partnership with Huisman Special Lifting Equipment B.V. (Huisman), has secured a US$150 million contract from SapuraCrest Petroleum Berhad, Malaysia, to design and construct a Self-Propelled DP2 Heavy Lift Derrick Pipelay Vessel. The vessel will be built to American Bureau of Shipping classification standard. Huisman is the Dutch specialist in the design and manufacture of heavy lifting and pipelay equipment for the offshore industry.

Sembawang Shipyard has been awarded this major specialized contract against strong international competition based on the shipyard’s capabilities and established track record in the highly specialised and sophisticated field of offshore vessels conversion and modification work. In particular, DP2 / DP3 vessels demand strong project management skills, high Health, Safety and Environment (HSE) standards, proven Engineering, Procurement and Construction (EPC) expertise and strong organisational capabilities.

This project will be executed on a 50 / 50 partnership with Huisman.

The Contract requires the complete engineering, construction, outfitting and commissioning of a 8000T new built hull into a self propelled, DP 2 heavy lift and pipelay vessel with a 330-men accommodation equipped with a Huisman 3000 st heavy lift crane and S-Lay Pipelay system. The execution of this Contract involves carrying out the major works for vessel basic design and fabrication of the heavy lift crane and pipelay equipment, construction of the bare steel hull and complete detail 3-D model engineering, systems outfitting and commissioning. The vessel is expected to be delivered in fourth quarter 2006.

Upon completion, the vessel “Sapura 3000” will be deployed in Offshore Malaysia.

Mr Ong Poh Kwee, Managing Director of Sembawang Shipyard said “We are very pleased to be chosen by SapuraCrest Petroleum Berhad to design and build this highly sophisticated vessel as this award marks another milestone achievement for Sembawang Shipyard in the area of offshore projects. We thank the owners for their trust and confidence in our project management know-how, design, engineering, outfitting and commissioning capabilities ".

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 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, Health, Safety and Environment standard, timely delivery, superior customer service and innovative solutions.

Sembawang Shipyard has more than three decades of experience and proven track record in ship repair and offshore conversions, servicing an average of 220 vessels of all types annually for an international clientele in the oil, bulk, chemical and gas trades.

The shipyard has evergreen alliances with Shell International Trading & Shipping Company Limited, BP Shipping, Jo Tankers and BHP Billiton and long term contracts with Alaska Tanker Company, TESMA Shipmanagement, V. Ships, TMT Ltd, Tecto B.V. and Northwest Shelf Shipping, all of which are internationally renowned shipping companies.

About Huisman-Itrec

Huisman Itrec is a designer and manufacturer of customized complex equipment. These are turn key delivered and commissioned products, which contain a combination of steel structures, mechanical parts, hydraulic or electric drive systems combined with computerised control systems and instrumentation.

In the early eighties Huisman Itrec developed the Heavy Lift Mast Crane. These cranes are now a well-known and accepted standard in the world of heavy shipping and are globally used for transport of heavy cargo. The largest mast crane built so far has a lifting capacity of 800t SWL.

All products are designed and built in accordance with the required international standards and certified by recognised authorities such as Lloyd’s, ABS, NMD, DNV, TUV, etc. Huisman-Itrec is certified to ISO 9001 since August 1995 by Lloyd’s Register Quality Assurance Ltd.

About SapuraCrest Petroleum Berhad

SapuraCrest Petroleum is a listed entity on the Malaysian Stock Exchange. The company is involved in the oil and gas industry by providing niche engineering and technical support services to find, develop, produce and manage petroleum reservoirs. Its key business activities are drilling services, offshore installation and construction services, marine services and operations and maintenance services.

SapuraCrest Petroleum is a member of the Sapura Group of companies, a major Malaysian group with a number of companies listed on the Malaysian Stock Exchange. The group’s core businesses are in the area of energy, technology, industrial, education and defence.

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