Updates On Seadrill's Jack-up Rig, The West Elara With PPL Shipyard

Singapore, Nov 07, 2009

Sembcorp Marine wishes to announce that its subsidiary, PPL Shipyard (PPL) has exercised its right to acquire the second unit of the jack-up drilling rig, the West Elara from Seadrill Limited (Seadrill) based on mutually beneficial revised terms as agreed by all parties in January 2009 (please refer to Company’s SGX-net announcement dated 9 January 2009).

West Elara is currently under construction in the shipyard and is built based on the proven PPL Pacific 375 Deep Drilling Jack-up design. The rig is due for completion in September 2010.

There are buyers who are interested in the jack-up rig. With this acquisition, PPL would have the flexibility to deal with the potential buyers. PPL will pay a sum of US$10.8 million for the acquisition. Further announcement will be made at the appropriate time when the transaction is done.

The first jack-up unit, the West Leda, which PPL is currently constructing for Seadrill is progressing on schedule with progressive payment received on time.

The above 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, 2009.

For media and analysts enquiries, please contact:

Ms Judy Han
Senior Vice President
Investor Relations & Communications
Tel No: 65-6262 7203
Fax No: 65-6261 0738
Email: judy@sembcorpmarine.com.sg
Website: http://www.sembcorpmarine.com.sg

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