Singapore: Sembcorp Marine’s Shipyard Wins VLCC into FPSO Conversion Contract

Jurong Shipyard, a wholly-owned subsidiary of Sembcorp Marine, has secured an approximately S$130 million project to convert the Very Large Crude Carrier (VLCC) tanker, the MV “TAR II” (ex STAR II), to a Floating Production Storage and Offloading (FPSO) vessel for MODEC.

This conversion project involves the installation of an external turret mooring system and process facilities, which include gas turbine generators, oil separation, gas injection/gas lift and water injection system. Planned delivery to MODEC is 2Q 2013.

The FPSO is designed to operate for 20 years without dry-docking and it will have production capacity of 100,000 barrels of oil per day and a storage capacity of 1,600,000 barrels of oil.

The FPSO will be delivered to OSX Leasing B.V. for deployment in offshore Brazil, located in water depths of approximately 110 metres.

This conversion project 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, 2011.

About MODEC

MODEC is an international general contractor specializing in engineering, procurement, construction and installation of floating production systems including Floating Production Storage and Offloading (FPSO) vessels, Floating Storage and Offloading (FSO) vessels, Tension Leg Platforms (TLPs), Production Semi-submersibles, Mobile Offshore Production Units (MOPUs) and other new technologies which will meet the challenges of various types of gas production floaters. The Company also provides Floating Production System operation and maintenance services around the world.

About OSX

The FPSO OSX-3 shall join the offshore production fleet owned and operated by OSX Brasil S.A. (Bovespa: OSXB3), a Brazilian publicly held corporation focused in the supply of equipment and services to the Brazilian offshore oil and gas industry. OSX is developing the largest shipyard in the Americas and has an estimated order book of 48 offshore production units, amounting US$ 30 billion approximately, to serve the production demand of its client and sister company OGX, responsible for the largest private-sector exploratory campaign in Brazil.

About Jurong Shipyard

Jurong Shipyard, a fully-owned subsidiary of Sembcorp Marine, is a leading shipyard offering integrated services and customized solutions in ship repair, shipbuilding, ship conversion, rig building and offshore engineering to a worldwide clientele, Apart from its proven track record in the building and servicing of jack-up and semi-submersible rigs, Jurong Shipyard is also a global leader in the EPC conversion of tankers to floating, production, storage and offloading (FPSOs) vessels, floating storage tankers (FSOs) and floating production units (FSU).

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Source: SembcorpMarine, October 4, 2011