1st Jack-up Drilling Rig Order from China’s Sinopec International (Hong Kong) Co for PPL Shipyard

Sep 17, 2008

Singapore, September 17, 2008: PPL Shipyard, a subsidiary of Sembcorp Marine, has secured a contract from Sinopec International (Hong Kong) Co, a subsidiary company of China Petroleum & Chemical Corporation, to build a PPL Shipyard Pacific Class 375 Offshore Jack-up rig at a value of US$229 million.

This is the first newbuild jack-up rig to be constructed outside of China. Scheduled for delivery in the first quarter of 2011, the rig will be owned and operated by the Shanghai Offshore Petroleum Bureau, a subsidiary of China Petroleum & Chemical Corporation (Sinopec).

This high performance jack-up rig will be built based on PPL Shipyard’s proprietary design Pacific Class 375 and proprietary components. It will be equipped to drill high pressure and high temperature wells at 30,000 feet whilst operating in 375 feet of water. It will have accommodation with full catering and amenities for 120 persons.

Mr Tan Kim Yung, Senior General Manager in PPL Shipyard, said: “We are pleased that Sinopec International (Hong Kong) Co has chosen PPL Shipyard to place its first jack-up rig order. This is significant as it will be the first jack-up drilling rig to be constructed outside China for China Petroleum and Chemical Corporation. We are delighted to be part of this milestone. The Pacific Class 375 high performance and deep drilling jack-up rig continues to be a popular design, well accepted by the Industry and fetching some of the highest charter rates. To-date, a total of 27 jackup rigs have been ordered based on this design with 13 units delivered and 14 units currently under various stages of construction with deliveries till 2011.”

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, 2008.

About Sinopec International (Hong Kong) Co
Sinopec International (Hong Kong) Co is a subsidiary company of China Petroleum and Chemical Corporation (Sinopec Corporation). Listed on the domestic and international stock exchanges, Sinopec Corporation is an integrated energy and chemical company with principal businesses in exploration, production and trading of petroleum and natural gas, refining and sales of petroleum products and production and sales of chemical products. The Company’s main assets are in the eastern and southern districts of China, which are enjoying the fastest economic growth in China.

Sinopec Shanghai Offshore Oil & Gas Company
Sinopec Shanghai Offshore Oil & Gas Company, a subsidiary of Sinopec Corporation, has extensive experience in the offshore oil and gas exploration activities. This includes offshore oil and gas exploration and development, management and exploration evaluation research, development construction and production technique.

About PPL Shipyard
PPL Shipyard, a subsidiary of Sembcorp Marine is an integrated rig design and rig building yard with proven track record in the building and servicing of jack-up and semi-submersible rigs. To-date, the shipyard has built 32 jack-ups and 4 semisubmersible rigs.

About Sembcorp Marine
Sembcorp Marine is a leading global marine and offshore engineering group specialising in a full spectrum of integrated services and customised solutions in ship repair, ship building, ship conversion, rig building and offshore engineering to a worldwide clientele. Apart from its proven track record in building and servicing of jack-up and semi-submersible rigs, the group 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 (FPUs). It is also a recognised leader in the engineering and construction of offshore production platforms and floating production facilities for the global oil and gas industry.

Sembcorp Marine.