Sembcorp Marine Secures its 7th Drillship Contract Worth US$806.4 Million from Sete Brasil

Singapore, November 29, 2012

Sembcorp Marine Ltd, through Jurong Offshore Pte Ltd’s wholly-owned subsidiary, has secured a drillship contract worth US$806.4 million from Sete Brasil Participacoes S.A. (Sete Brasil), for the design and construction of a drillship based on Jurong Shipyard’s proprietary Jurong Espadon drillship design.

This is the 7th unit of a series of drillships that Sembcorp Marine’s subsidiaries have secured since February 2012. Including the six drillships that were announced on 6 February and 8 August this year, all seven drillships will be built based on the Jurong Espadon design, which represents the next generation of high specification drillships with advanced capabilities for operational efficiency and ultra-deepwater operations worldwide. Each of the drillships will be equipped with state-of-the art drilling facilities, a larger deck area, efficient deck arrangement and a large moon pool for enhanced drilling operations as well as DP-3 (Dynamic Positioning Class 3) capabilities and superior motion. The drillship will be capable of operating at 10,000 ft water depth and drilling to depths of 40,000 ft, with accommodation facilities for a crew of 180 personnel.

The 7th drillship unit is scheduled for delivery no later than the third quarter of 2016. These seven ultra-deepwater drillships, with deliveries ranging from 2Q 2015 to 4Q 2019 will be among the first in a series of drillships to be built in Brazil to cater to the oil and gas discoveries in the offshore giant pre-salt fields of the Santos Basin. On delivery, all seven drillships will be chartered to Petrobras for 15 years.

Mr Joăo Carlos Ferraz, Chief Executive Officer of Sete Brasil said “We are pleased to sign this additional drillship unit with our trusted and proven partner, the Sembcorp Marine Group. All seven high specification drillships will be built based on the same design. Given their established track record working in Brazil, we are confident that all of these high-specification drillships will be delivered on time and meeting our schedule. We are confident that Jurong Shipyard and its parent company in Singapore will make our drillship programme a success in Brazil.”

Mr Wong Weng Sun, President and CEO of Sembcorp Marine said “We are honoured to sign the 7th drillship with our Brazilian partner, Sete Brasil. Including the six units of drillship that were secured earlier, we will be a leading builder in drillships in Brazil. We are proud to be recognised as a strategic partner in Brazil’s pre-salt drillships programme for its deepwater oil fields.”

The contract is not expected to have any material impact on the consolidated net tangible assets and earnings per share of Sembcorp Marine for the year ending December 31, 2012.

About Sete Brasil
Sete Brasil is a Brazilian company established in December 2010 and formed by several Brazilian and US finance investors, including banks, private equity companies and the four biggest Brazilian pension funds, besides Petrobras.

About Sembcorp Marine and its subsidiaries
Sembcorp Marine is a leading global marine and offshore engineering group with 49 years of experience and proven capabilities in the building of high-specification jack-up rigs, the innovative fast-track construction of ultra-deepwater semi-submersible rigs, conversion of floating production and storage facilities as well as the engineering and construction of offshore platforms.

Headquartered in Singapore, it has a network of five shipyards in Singapore– Jurong Shipyard, Sembawang Shipyard, SMOE, PPL Shipyard and Jurong SML – with strategic presence spanning Indonesia, China, India, United Kingdom, Brazil and the United States. The Group is currently constructing a 73.3-hectare Integrated Tuas New Yard Phase I facility in Singapore. When fully operational in 2H 2013, the Group’s ship repair, ship conversion and offshore capacity will nearly double from the current 1.9 million dwt.

A key player in Brazil’s offshore oil & gas industry, Sembcorp Marine’s fully-owned subsidiary Jurong Shipyard has been serving the country’s exploration and production sector for more than two decades. The Group has to-date delivered a total of 19 oil & gas exploration, production and storage platforms for Brazilian oilfields. These platforms contribute approximately half of Brazil’s daily output.

Estaleiro Jurong Aracruz Ltda, Sembcorp Marine’s first overseas Integrated New Yard Facility, is strategically located in the municipal of Aracruz in the state of Espirito Santo, Brazil. The wholly-owned locally incorporated 82.5-hectare new Brazilian shipyard, which broke ground in December 2011, is scheduled for full completion at end 2014. Planned shipyard facilities include a 380m x 120m drydock, a 1km berthing quay as well as ancillary piping facilities and steel fabrication workshops. On completion, Estaleiro Jurong Aracruz will have capabilities to undertake the construction of drillships, semi-submersible and jack-up rigs, platforms and supply vessels as well as FPSO integration and topside modules fabrication, in addition to traditional services in drilling rig repairs, ship repairs and modification and upgrade works.

Jurong Offshore Pte Ltd, a wholly-owned subsidiary of Sembcorp Marine is in investment holding while the main activities of its subsidiaries are in the provision of marine/offshore engineering and shipbuilding services.

Sembcorp Industries press release