Sembcorp Marine's Jurong Shipyard Secures US$384 Million Contract To Build Two Jack-Up Rigs With Options For Another Four Jack-Up Rigs From Seadrill

Oct 18, 2010

Sembcorp Marine's subsidiary Jurong Shipyard (JSPL) has secured orders of US$384 million for two turnkey jack-up rigs with options for another four jack-up rigs from Seadrill.

The total estimated value of the six jack-up rigs, including the four jack-up rig options is expected to surpass the US$1 billion mark. This contract with Seadrill will be the largest order of rigs to-date, reflecting the growing market segment for quality premium high specification jack-up rigs.

Scheduled for delivery in the fourth quarter of 2012 and the first quarter of 2013 respectively, the jack-up rigs represent the latest generation, high specification jack-up drilling rigs with greater capacities and capabilities than current conventional units. These rigs will be built based on the Friede & Goldman JU2000E design and are suitable for operations world-wide, including the southern North Sea. On completion, these new rigs will be capable of operating in waters of 400 feet and drill to depths of 30,000 feet. They will offer improved drilling efficiencies with off-line pipe handling, simultaneous operations support and are equipped with increased accommodation capacity.

Mr Don Lee, Senior General Manager, JSPL’s Offshore Division said "We are pleased that Seadrill has again chosen to partner Jurong Shipyard in their fleet expansion strategy to be the world’s largest operator of modern high specifications rigs. These jack-up rigs will be the 6th and 7th rig orders that Seadrill has placed with JSPL, two of which are currently under construction in the shipyard.”

Mr Alf C Thorkildsen, Chief Executive Officer in Seadrill Management AS, said “We have selected Jurong Shipyard as a partner yard based on its proven track record and project execution capabilities. Jurong Shipyard has set many ‘first successes’ with Seadrill and we are confident that it will continue to perform. The newbuild rigs will further strengthen Seadrill’s status as a leading operator of modern, high quality premium drilling rigs. These orders will position us for additional growth in an increasingly important market segment that can provide further opportunities and earnings growth for Seadrill.”

The contract is not expected to have any material impact on the consolidated net tangible assets per share and earnings per share of Sembcorp Marine for the year ending December 31, 2010.

About Seadrill

Seadrill is a leading offshore deepwater drilling company. The Company operates a versatile fleet of 48 rigs that comprises drillships, jack-up rigs, semi-submersible rigs and tender rigs for operations in shallow to ultradeepwater areas in harsh environment and benign environments. It is listed on the New York Stock Exchange and the Oslo Stock Exchange.

About Jurong Shipyard

Jurong Shipyard, a fully-owned subsidiary of Sembcorp Marine, is a leading shipyard offering integrated services and customised 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 units (FPSOs), floating storage tankers (FSOs) and floating production units (FPU).

For media and analysts enquiries, please contact:

Ms Judy Han
Senior Vice President
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Tel: (65) 62627203
Fax: (65) 62610738

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