Cosco Corporation Secures USD356 Million Contract For (2) Two Units Jackup Drilling Rigs

26 May 2011

The Board of Directors of COSCO Corporation (Singapore) Limited (the “Company”) wishes to announce that COSCO (Nantong) Shipyard Co. Ltd., a subsidiary of the Company’s 51% owned subsidiary, COSCO Shipyard Group Co. Ltd., has secured a USD 356 million contract from KS Drilling Pte Ltd, a subsidiary of KS Energy Limited (formerly known as KS Energy Services Limited) to build (2) two units Jack-up Drilling Rig based on the LeTOURNEAU WORKHORSE® Class design.

The rigs will be built to ABS classification, with notation A1, Self Elevating Drilling Unit, HAB+. When completed, these rigs will be one of the world's deepest drilling rigs with drilling depth of up to 35,000 ft, capable of operating in 400 feet water depth and with accommodation for 150 persons onboard. It features an offline stand building capability to handle drill pipes efficiently and is equipped with a capacity hook-load of 2 million pounds, boosting overall rig performance and productivity.

The first rig is scheduled to be delivered in third quarter 2013 and the second rig in first quarter 2014.

None of the directors or controlling shareholders of the Company has any interest, direct or indirect in the contract.

The contract is not expected to have a material impact on the net tangible assets and earnings per share of the Company for the year ending 31 December 2011.

By Order of the Board
Jiang Li Jun
Vice-Chairman and President
26 May 2011

Cosco Corporation (Singapore) Limited, press release