Dolphin July-Aug08.pdf - Jurong Shipyard Pte Ltd

Jul - Aug 2008Sembcorp Marine Celebrateswith the NationMAERSK CONVINCER &HAKURYU-10 Jack-up DeliveriesBlessing of FSO Queensway

YARD NEWSJurong Scores Two Semi-sub Rig Orders at US$1.205 BillionJurong Shipyard, a wholly ownedsubsidiary of Sembcorp Marine, hassecured contracts totalling US$1.205billion – including a US$640 millionturnkey deal from Norway’s SeadrillLimited as well as a US$565 million rigorder from America’s Atwood OceanicsPacific Limited – in the months of Julyand August 2008.Inking the deal: Mr Don Lee, Jurong Shipyard’s SeniorGeneral Manager of Offshore, with Mr Alf. C. Thorkildsen,Seadrill’s Chief Executive Officer & PresidentSteadfast partnership: Alan Quintero, AtwoodOceanics’ Senior Vice President of Operations,engaging in a handshake with Mr Don LeeBoth rigs will be 6th generation Friede &Goldman ExD Millenium design ultra-deepwaterdynamic positioning semi-submersible drillingunits capable of operating in 3,000m waterdepth in harsh environment drilling conditions.Engineered for stability and versatility, the rigswill have an operational displacement of 43,400metric tons at 17m draft and 46,750 metric tonsat 20m draft.Repeat semi-submersible order afourth from SeadrillSeadrill’s fourth repeat order with JurongShipyard calls for the construction of a 6thgeneration ultra-deepwater semi-submersibledrilling rig at a turnkey contract value ofUS$640 million.Scheduled for delivery in December 2011, theultra-deepwater semi-submersible drilling rigwill have specifi cations identical to the earlierthree deepwater semi-submersible drilling rigsordered by Seadrill from Jurong Shipyard,including the fi rst unit West Sirius, the secondunit West Taurus and the third unit West Orion.Second semi-submersible rig orderfrom Atwood OceanicsJurong Shipyard was further awarded asecond semi-submersible rig building contractin August 2008 by Atwood Oceanics Pacifi cLimited (AOPL), a wholly-owned subsidiary ofAtwood Oceanics Inc, with the option for anadditional third unit.The shipyard contract value of US$565million does not include certain ownerfurnished equipment and owner-related costs.Scheduled for delivery in mid-2012, this ultradeepwatersemi-submersible drilling rig unitwill be the eleventh mobile offshore drillingunit of the Atwood Group fl eet.Marking a solid co-operation: Atwood Oceanics Pacific’s Director Mr Anthony H. Dyne (second from right) and ProjectManager Mr Albert Temmen, together with Jurong Shipyard’s Senior General Manager of Offshore Mr Don Lee, and SeniorManager of Offshore Mr Carl WongThe first rig, currently under constructionin Jurong Shipyard for AOPL, is aconventionally moored semi-submersibledrilling unit built based on the same Friede& Goldman ExD design. Scheduled fordelivery in early 2011, this rig is alreadycontracted to Chevron Australia by the owner.Mr John Irwin, Atwood’s President andCEO, stated: “We are pleased to continueour relationship with Jurong Shipyardand take the next step in further buildingour Company’s international deepwatercapability. The ExD Millennium semisubmersiblewill be an excellent unit formeeting our clients’ future deepwater needs.”Mr Don Lee, Senior General Manager ofJurong Shipyard’s Offshore Department,said: “We are pleased that Atwood Oceanicshas entrusted Jurong Shipyard with a secondconsecutive newbuild semi-submersible rig.This is Jurong Shipyard’s twelfth newbuildultra-deepwater semi-submersible rig basedon the Friede & Goldman ExD design. Nineof these rigs, with the exception of thelatest three units, have secured charteredcontracts with reputable and established oilcompanies. This is an excellent testament ofthe rig’s capabilities and the shipyard’s strongturnkey expertise and track record in semisubmersibleconstruction.”Dhirubhai-1 Heads for IndiaIndia’s first deepwater FPSO vessel, Dhirbuhai-1, has set off from Jurong Shipyardon July 28, 2008 after her successful tanker-to-FPSO conversion.Delivered to Norway’s Aker Contracting FP AS, Dhirubhai-1 is bound for the MA D6 fi eld offthe east coast of India under a charter with Reliance Industries Limited. First oil is expected inthe third quarter of 2008.Designed to operate for 10 years without drydocking, the FPSO has a production capacity of60,000 barrels of oil per day and 15 million m 3 of gas per day, a storage capacity of 1.3 millionbarrels of oil, and a liquid injection capacity of 80,000 barrels per day.02Jul - Aug 2008

YARD NEWSAltair Voyager Periodic OverhaulExcellent teamwork between Jurong Shipyard and Chevron ensured a successful periodic overhaul for Altair VoyagerThe month of July saw the return of Altair Voyager, a 156,835 dwt tanker owned by Jurong Shipyard’s long-term alliance partnerChevron Shipping Company, after her last visit to Jurong Shipyard in 2003.The schedule of repair and maintenanceworks for the 274.50m x 50.00m x 25.16mtanker during her three-week stay includeddrydocking and maintenance repairs.The scope of repairs for Altair Voyagerincluded hull painting works as well as hydroblastingand coating in the water ballasttanks and fore-peak tank. Steel repair wasalso carried out in the water ballast tanks toreinforce its durability.Routine overhauling jobs were performed onthe motors, main engine cylinder covers andpistons, cargo pumps and ballast pumps whilethe cargo pipe dresser couplings, anchorwindlass and mooring winches underwenthydro-blasting and a new coating.The excellent teamwork between the repairteams was marked by the project’s incidentfreetrack record and high standards ofquality, safety and reliability. The sailawayof the vessel in the second week of Augustmarks yet another successful repair for theChevron-Jurong partnership.Keel-laying for Newbuild Heavy-lift Jack-up BargeJurong Shipyard commemorated the erection of the first 100 tons of steel for aself-elevating heavy-lift jack-up barge for Aramco Overseas Company B.V. onJuly 4, 2008.Scheduled for delivery in the fi rst quarter of 2010,the heavy-lift jack-up barge is a four-legged, selfelevatingheavy-lift, subsea pipeline repair andmaintenance support unit which is designed foroperations in water depths between 5m to 60min the Arabian Gulf.Group shot: Key representatives from Jurong Shipyard with partners from Aramco Overseas B.V. includingProject Manager Mr Marshad S. Al-Awwad and Project Engineer, Mr Robert C. Munter (7th and 8th fromleft) from Ras Tanura Projects Division, Northern Area Projects Department.A total of two blocks and four spud cans laidduring the ceremonyJul - Aug 200803

YARD NEWSSanko Carriers Make Their CallJurong Shipyard successfully overhauled a pair of JapaneseLPG carriers – the 49,618 dwt Crystal Mermaid and the49,679 dwt Gas Scorpio – from Sanko Ship ManagementCo. Ltd in July 2008.Crystal Mermaid, which last visited in 2006, called at the yard in mid-Junethis year for repairs and drydocking. Major works performed on the 224.0m x36.0m x 20.0m vessel during her three-week stay included the reinforcementof its hull structure, installation of the CO2 system and the Hi-form system,as well as the renewal of the auxiliary boiler and incinerator.Also making her stop was the 230.00m x 36.60m x 20.40m Gas Scorpio,which docked in the yard from late June till early July. Jobs carried outincluded the overhauling of the vessel’s LPG cargo pumps as well as thenew installation of owner-supplied Main Engine Lubrication System and theSimplifi ed Voyage Data Recorder. Other maintenance works which wereconducted include hull cleaning, blasting and painting as well as the fi xing ofsea valves and main engine cylinder heads.Gas Scorpio in the drydockPrior to Crystal Mermaid and Gas Scorpio, Jurong Shipyard had alsocompleted the repairs for Sanko Breeze, a 105, 721 dwt crude oil carriermeasuring 239.00m x 42.00m x 21.30m from Sanko Steamship Co. Ltd, inJune. As part of the repairs, the yard overhauled the vessel’s cargo pumpsat various locations, turbo chargers, and main engine cylinder covers.Oil tanker Sanko Breeze makes her stopLPG gas carrier Crystal Mermaid basking in the sun04Jul - Aug 2008

YARD FEATURE NEWSBlessing of FSO QueenswayOffering their well wishes to the vesselSeeking blessings for FSO Queensway: (From left) Mr Lee Yeok Hoon, Jurong Shipyard’s Executive Director,Mr C. Van Lineberger, Cuu Long’s Deputy General Manager, Mr Alistair McGregor, Tanker Pacific’s Chairmanand Chief Executive Officer, and Dr Vu Ngoc An, Cuu Long’s General Manager, participating in the blessingceremony led by Master Guang Rong.Cheering a job well done onboard the FSOQueenswayBy all counts, August 8, 2008 was an auspicious day to remember. The eighth day of the eighth month not only marked the startof the Olympic Games but also the blessing of Queensway, a newly converted Floating Storage and Offloading (FSO) vessel byJurong Shipyard for Tanker Pacific Offshore Terminals.To usher in prosperity and success for FSOQueensway on her new assignment offshoreVietnam, a blessing ceremony was held for thevessel in the yard, witnessed by managementrepresentatives and project team members fromJurong Shipyard, Tanker Pacifi c, and Cuu LongJoint Operating Company. Among the VIPspresent were Tanker Pacifi c’s Chairman andChief Executive Offi cer Mr Alastair McGregor,Dr Vu Ngoc An, General Manager of Cuu Long,and Mr C Van Lineberger, Deputy GeneralManager of Cuu Long.The ceremony commenced with the openingaddress by Mr Lee Yeok Hoon, ExecutiveDirector of Jurong Shipyard. In it, he thankedTanker Pacifi c for awarding the QueenswayVIPs commemorating the auspicious occasionconversion project to the yard and theircontinued confi dence over the years.“Tanker Pacifi c has always been a goodcustomer and a friend. We have beenassociated with them for the last 25 years andwe value this long relationship and synergywith them,” said Mr Lee.Mr Alistair McGregor of Tanker Pacifi cnoted that the on-time conversion of FSOQueensway, Tanker Pacifi c’s second projectfor both Conoco-Phillips Vietnam and PetroVietnam, is “an astounding achievement”made possible by strong teamwork and“individuals working together collectively toachieve a common goal”.Highlighting the project’s signifi cance, Mr CVan Lineberger of Cuu Long said that FSOQueensway will be a key component of the SuTu Vang Development project, which featuresa newly installed central processing platform.“We are excited about the Queensway and herrole in Su Tu Vang Field – the Golden Lion Field– and our continual development of Block 15-1for Vietnam,” he said.The conversion of the 260.5m x 48.25m x24.1m Queensway comprised the marinehull conversion, turret integration as wellas installation of the mooring, riser, cargooffl oading and power generation systems. Fuelgas treatment skid modules and a helideckstructure were also installed by the yard.Scheduled to sail off for Vietnam in September2008, Queensway is expected to operate for10 years without drydocking with the abilityto withstand up to 100-year storm conditions.Capable of storing 1,140,015 barrels of oil(bbls), the FSO has an extraction capacity of130,000 barrels oil per day (bopd).Alluding to the Olympic theme, Mr Linebergerquipped, “I know that with all the fi ne work thathas gone into the Queensway, it is going todeliver a gold medal to the Gold Lion fi eld.”Jul - Aug 200805

FEATUREMaersk Convincer to Join Sister Rig Offshore BruneiHooray for teamwork! Representatives from Sembcorp Marine, Jurong Shipyard and A.P. Moller-Maersk expressing their elationJurong Shipyard marked the construction completion and official naming of MAERSKCONVINCER, the yard’s second newbuild Baker Marine Pacific Class 375 (BMC Pacific375) newbuild jack-up rig for Denmark’s Maersk Contractors, in a ceremony graced byMr Raymond Lim, Minister for Transport and Second Minister for Foreign Affairs, onAugust 18, 2008.MAERSK CONVINCER was christened byLady Sponsor Mrs Beth Allen, the wife of MrWilliam S. Allen, Senior Vice President of HumanResources, A.P. Moller-Maersk, in the presenceof key stakeholders. The on-time completionof MAERSK CONVINCER follows after thesuccessful delivery of its fi rst sister jack-up unitMAERSK COMPLETER by Jurong Shipyard inMay 2007.Minister Raymond Lim said, “The growth ofMaersk in Singapore has taken place very muchOfficial rig naming by Lady Sponsor Mrs Beth Allenin tandem with Singapore’s own developmentas an International Maritime Centre. Over theyears, the Maersk Group has forged long andclose partnerships with Singapore companies.Indeed, with the completion of this newest rig andMaersk’s newbuilding programme of drilling rigsin Singapore, I am confi dent that the longstandingpartnership between Maersk and Singapore willbe further strengthened.”Scheduled for delivery in September 2008,MAERSK CONVINCER will be deployed forMr W S Wong presenting a token of appreciationto Guest-of-Honour Mr Raymond Limdrilling operations offshore Brunei and one wellin Malaysia under a one-year charter with BruneiShell Petroleum, with options for extension.Its sister unit MAERSK COMPLETER wasalso awarded a similar charter by Brunei ShellPetroleum for the same drilling assignment in thefourth quarter this year in direct continuation ofits current contract with Total E&P Borneo.MAERSK CONVINCER is the third of a seriesof four BMC Pacifi c 375 jack-up rigs built ona turnkey basis by Jurong Shipyard based onSembcorp Marine’s proprietary BMC Pacifi c 375deep drilling offshore jack-up design. Equippedwith a state-of-the-art drilling package, a longreachcantilever and a fully mechanized pipehandling system, the rig is capable of drillinghigh-pressure and high-temperature wells at30,000 feet at more than 375 feet water depth.The rig, featuring an innovative 72 pinion designjacking system, is designed for operationaleffi ciency and performance with a huge jackingcapacity for full preload jacking, as well as a largevariable load, a high liquid mud and bulk mudcapacity, and extensive useable deck space, withaccommodation for 120 men.06Jul - Aug 2008

FEATUREDancers livening up the occasionCause for celebration: Mr Raymond Lim, Minister for Transport and Second Minister for Foreign Affairs, with(from right) Mr K K Tan, Sembcorp Marine’s Group President & CEO, Mr William S. Allen, Maersk Contractors’Senior Vice President of Human Resources, Lady Sponsor Mrs Beth Allen, Mr Claus V Hemmingsen, Partnerof A.P. Moller-Maersk and CEO of Maersk Contractors, Mrs Susanne Hemmingsen, and Mr W S Wong,Managing Director of Jurong ShipyardClinking their champagne glasses to mark MAERSKCONVINCER’s completion successMr Claus V. Hemmingsen, Partner of A.P. Moller-Maersk and CEO of Maersk Contractors, said,“Our cooperation with Jurong Shipyard hasproven to be successful and mutually fl exible.We are very satisfi ed with the smooth andcooperative spirit of the yard. We can see theresult today in MAERSK CONVINCER, a highqualityjack-up rig.”Mr Wong Weng Sun, Managing Director ofJurong Shipyard, said, “The turnkey constructionsuccess of the second Maersk rig – MAERSKCONVINCER – exemplifi es the strongpartnership and close co-operation of the teamsfrom Jurong Shipyard, Maersk Contractors andour key partners. It is our privilege to work withMaersk Contractors on this project and welook forward to continue this excellent workingVIPs touring the rigMAERSK CONVINCER is Maersk Contractors’ second high-performance Baker Marine Pacific Class 375 jack-upon order with Jurong ShipyardJul - Aug 200807

COVER STORYForging Ahead with the NationBirthday wishes for Singapore – Guest-of-Honour Mr Gan Kim Yong , Acting Minister for Manpower, and key representatives from Sembcorp Marine, Jurong Shipyard andthe SMEEU Jurong Shipyard Branch union in celebration.In celebration of Singapore’s 43rd year of Independence, Sembcorp Marine togetherwith subsidiary Jurong Shipyard and the SMEEU (Shipbuilding and Marine EngineeringEmployees’ Union) Jurong Shipyard Branch held a National Day Observance Ceremonyon August 11, 2008 to commemorate the nation’s progress.The event, marked by a fl ag-raising ceremony andthe singing of the National Anthem, was gracedby Guest-of-Honour, Mr Gan Kim Yong, ActingMinister for Manpower.Addressing more than 6,500 staff and residentcontractors, Mr Gan began his speech by praisingJurong Shipyard’s ability to adapt to the changingmarket. He also noted the yard’s commendableachievement in securing no less than 12 semisubmersiblesand fi ve jack-up rig orders frominternational customers over the past six years,with deliveries scheduled up to 2012.Guest-of-Honour Mr Gan Kim Yong dons aceremonial shawl of welcome on his arrivalIn his address, Mr Wong Weng Sun, President& Chief Operating Offi cer of Sembcorp Marineand Managing Director of Jurong Shipyard,acknowledged the hard work and dedication ofemployees and contractor partners in contributingto this strong performance.Cautioning against complacency, Mr Wong said,“While we take heart in this success, we have tomove forward as we continue to face increasingcompetition from emerging markets like India andChina. It is therefore important for us to intensify ourknowledge base and technological advancementthrough R&D and see more continuous innovationin our yard to further our operational effectivenessand effi ciency.”Safety was a major highlight in the speechesdelivered. Mr Gan urged the industry to “commitresources to take substantial steps to improvesafety outcomes”. He lauded Jurong Shipyardfor its continuous investments in Health, Safetyand Environment as well as its comprehensivesafety management systems. The yard was alsocommended by the Minister for its manpowerdevelopment and job re-creation efforts ingrooming Singaporeans for supervisory roles andre-employing employees beyond their retirement.Refl ecting on this year’s National Day theme“Celebrating the Singapore Spirit”, Mr Gan said,“It is this ‘can-do’ spirit which has united us intimes of adversity since independence. With strongcollaboration among government, industry andworkers, we would be well-poised to meet thechallenges ahead of us.”Assembly of employees and resident subcontractorsMr Gan Kim Yong and union members sharing alight momentNational Day 2008 AwardsWSH Innovation Award1 st prizeVISION Team, JurongIntegrated Services2 nd prizeSafe Stage Team,Hull Painting Section3 rd prizeLIFE Team JurongMachinery &Automation5 Million Man-hours without LosttimeIncidents AwardHong RongEngineeringScaffold Safety Poster DrawingCompetition AwardHull Painting Section(Mr Abu Talib rep. byMr Liew Kah Hoe)08Jul - Aug 2008

COVER STORYSponsorship of NDP 08 SPARK!“Shine Singapore!” – Sembcorp Marine’s birthday wish for thenation was poignantly conveyed in this year’s National DayParade (NDP) SPARK! interactive spectators’ display during theAugust 9 NDP celebrations at the Marina Bay.Strong show of support by Sembcorp Marine’s staffHaving a SPARKing fun time!Proudly sponsored by Sembcorp Marine, theSPARK! mass display was an impressive visualfeat involving 30,000 NDP-goers in the seatinggallery holding specially designed SPARKs.Representing energy and vibrancy, eachSPARK symbolizes a dynamic burst of light andforms the message “Shine Singapore” whendisplayed in unison.In addition to the SPARK! mass display,Sembcorp Marine also joined other sistercompanies within the Sembcorp Group in theparade’s marching segment.Sembcorp Marine has always been an activesupporter of Singapore’s National Daycelebrations over the years.Happy 43rd Birthday Singapore!Sembcorp Marine’s birthday greeting vividly expressed through the SPARK! spectators’ displayThis year’s marching participation is the secondconsecutive time for Sembcorp Marine at theMarina Bay integrated fl oating platform.Most signifi cantly, the fl oating platform – thelargest of its kind in the world – was designedand built by the company last year.Sembcorp Marine marching delegates together with contingent members from the Sembcorp GroupMarching on with prideJul - Aug 200809

SCM : AROUND THE YARDSPPL Shipyard Delivers HAKURYU-10Commemorating HAKURYU-10’s success - Key stakeholders in celebration, including Lady Sponsor Mrs Mariko Murata and herhusband Mr Minoru Murata, President of Japan Drilling, PPL Shipyard’s Deputy Chairman Dr Benety Chang and Managing DirectorMr Douglas Tan, as well as Eni Tunisia’s Drilling and Completion Standard Manager Mr Antonino Galletta.HAKURYU-10, Japan Drilling’s first rig to be builtoutside Japan, is the ninth successful BMC Pacific375 rig delivery by PPL ShipyardHAKURYU-10, successfully delivered by Sembcorp Marine’s subsidiaryPPL Shipyard to Japan Drilling Co. Ltd in June 2008, has set sail for theMediterranean Sea offshore Tunisia in August 2008 for its maiden operationwith charterer Eni Tunisia B.V., after completing preparation works andfamiliarization training in the yard.Double dragon: Mr Douglas Tan, Managing Director ofPPL Shipyard, presenting a painting of the HAKURYU-10 jack-up and Hakuryu (which means white dragonin Japanese) to Mr Minoru Murata, President of JapanDrilling.HAKURYU-10, Japan Drilling’s fi rst rig to bebuilt out of Japan, is the ninth of a series of20 jack-up rigs built based on PPL Shipyard’sproprietary Baker Marine Pacifi c Class 375(BMC Pacifi c 375) design.This highly sophisticated jack-up rig is designedwith the ability to drill high pressure and hightemperature wells at 30,000 feet whilst operatingin 375 feet of water. Equipped with a state-of-theartdrilling package for deep water drilling, the rigfeatures a large variable load, a high liquid mudand bulk mud capacity, extensive usable deckspace, and a huge jacking capacity for full preloadjacking, with accommodation for 120 men.Prior to her sail-away, the deep drilling offshorejack-up rig was christened HAKURYU-10 by LadySponsor Mrs Mariko Murata, wife of Mr MinoruMurata, President of Japan Drilling, on July 8, 2008,in a ceremony witnessed by key representativesand stakeholders at PPL Shipyard.Mr Minoru Murata, President of Japan Drilling,said: “The naming of HAKURYU-10 is of specialsignifi cance as the jack-up is our fi rst newbuildrig built overseas and one of the most technicallyadvanced in the market. We are confi dent that theaddition of the HAKURYU-10 to our group’s rig fl eetwill bring strong operational advantages and furtherenhance our competitive edge in the industry.”Egyptian Drilling Awards Second Rig Order to PPL ShipyardPPL Shipyard has secured a repeat contract from customer Egyptian Drilling Company (EDC), a subsidiary of Egypt’snational oil company Egyptian General Petroleum Corporation, to construct another jack-up rig at a contract value ofUS$220 million in July 2008.The rig is the second consecutive newbuildjack-up order that EDC, a joint venture betweenthe Egyptian General Petroleum Corporation(EGPC) and Denmark’s A.P. Moller-MaerskGroup, has placed with PPL Shipyard.This latest jack-up rig is scheduled for deliveryin mid-2010, while the fi rst rig, currently underconstruction in PPL Shipyard, is expected tobe delivered in December 2009.The rig will be built based on PPL Shipyard’sproprietary Baker Marine Pacifi c 375 (BMCPacifi c 375) deep-drilling jack-up design, aproven design successfully accepted by theindustry and fetching some of the highestcharter rates. Since its launch in 2004, a totalof 24 jack-up rigs have been ordered basedon this design as of end August this year,with eleven units successfully delivered tothe owners.10Jul - Aug 2008

SCM : AROUND THE YARDSSMOE to Construct US$400 Million North Sea PlatformSMOE, a subsidiary of Sembcorp Marine, has in July 2008 secured a contract worth someUS$400 million from Maersk Olie og Gas AS for the construction of a new process platform(HBD) to be installed in the Danish sector of the North Sea.The contract entails the provision of engineering, procurement,construction, onshore commissioning, load-out and seafasteningservices for the HBD jacket, piles, topsides, fl are and threeconnecting bridges, which has a total weight of about 16,500 tons,for the Halfdan Phase IV Development Project.The platform topsides will include processing, powergeneration and utility facilities. Construction is expected tocommence in November 2008 with onshore completionscheduled in June 2010.Mr Chew Sang Mon, SMOE’s General Manager forCommercial and Business Development, said: “This is thethird major contract awarded by Maersk Olie og Gas foroperations in the North Sea and the biggest single contractsecured by SMOE to-date. In 1998, we had successfullycompleted two Wellhead Platforms for Maersk Oil Qatar fortheir Al Shaheen Field. This repeat order is a testament ofMaersk Olie og Gas’ confi dence in our turnkey capabilitiesand proven expertise in constructing offshore platforms andability to meet stringent requirements for the North Sea.”First early visualisation of the Halfdan Phase IV developmentSembawang Shipyard to Build DP2 Fallpipe VesselSembawang Shipyard, a wholly-owned subsidiary of Sembcorp Marine, has secured a S$100 million contractin July 2008 from Dredging, Environmental and Marine Engineering (DEME) to construct a 19,000 tonnes DP2fallpipe vessel for its subsidiary company, Tideway, which specialises in offshore dredging, landfall constructionand pipeline stabilization works.A fallpipe vessel is a very specialised vesselconsisting of a hold in which graded rock is stocked,and a ‘fallpipe’, at the lower end controlled by anRemote Operated Vehicle (ROV), which places thegraded rock material at an exact location. Offshorerock placement is applied mostly to stabilise andprotect cables, pipelines and fl ow lines.The execution of the contract involves the completeengineering of the basic design package providedby the owners, construction of the vessel’s hull,major outfi tting of owner’s supplied machineryincluding owner’s furnished equipment, systemsoutfi tting and commissioning. Upon completion,this new generation of environmentally friendlydesigned fallpipe rock dumping vessel will beequipped with the DP2 capability to carry outprecise rock placement works at a depth of noless than 2,000m. The vessel will be classed withLloyd’s Register and will also comply with Lloyd’sEnvironment Protection Code whereby NOxemissions will be largely minimized.The vessel is scheduled to be delivered in January2011 for deployment worldwide and will beTideway’s biggest fallpipe vessel.Mr Alain Bernard, Chief Executive Offi cer of DEME,said: “We see Sembawang Shipyard as the rightpartner for the construction of our newly designedfallpipe vessel as the shipyard has demonstrated itsstrong track record in handling sophisticated offshorework especially vessels equipped with dynamicpositioning capabilities. We are confi dent that bothDEME and Sembawang Shipyard will be able towork closely towards the successful completion andcommissioning of this challenging project.”Mr Ong Poh Kwee, Managing Director ofSembawang Shipyard, said: “We are pleased tobe chosen by DEME as its partner to constructthis highly specialized vessel to serve the offshoreindustry. This will be Sembawang Shipyard’s sixthDynamic Positioning (DP) Offshore ConstructionVessel and further reaffi rms our shipyard’s solidtrack record as the market leader for offshoredynamic positioning vessels newbuildings andconversions. We thank the owners for theirtrust and confi dence in our project managementknow-how, design, engineering, outfi tting andcommissioning capabilities.”Jul - Aug 200811

SCM : FINANCIAL RESULTSRecord Growth in 2Q 2008Analysts and media community being briefed about Sembcorp Marine’s financial performanceMr Wong Weng Sun, Sembcorp Marine’s President &Chief Operating Officer, responding to queriesSembcorp Marine reported strong second quarter growth onAugust 5, 2008 with earnings increasing 51% from $85.1 millionin 2Q 2007 to $128.3 million in 2Q 2008. Group turnover for2Q 2008 grew 32% from $1,051.6 million to $1,386.1 millionfor the corresponding period.Group operating profi ts grew by 51% from $74.0 million in 2Q 2007 to$111.5 million in 2Q 2008. Group pre-tax profi ts rose 51% from $106.7million to $160.7 million for the corresponding period. The increase isattributable mainly to the higher operating margins from rig building and shiprepair businesses and better contribution from associated companies.On a half yearly basis, Group turnover increased by 15% from $2,005.3million in 1H 2007 to $2,302.2 million in 1H 2008, attributable mainly tohigher revenue recognition from rig building, ship conversion/offshore andship repair businesses.Group operating profi ts for 1H 2008 increased by 29% to $190.9million as compared with $148.1 million recorded in 1H 2007.Group pre-tax profi ts saw an increase of 44% from $191.4 millionin 1H 2007 to $275.9 million in 1H 2008. The increase is mainlyattributable to higher operating margins from rig building andship repair businesses and better contribution from associatedcompanies. Group attributable profi ts in 1H 2008 grew by 38% to$219.6 million as compared with $158.8 million in 1H 2007.In line with the Group’s strong performance in 1H 2008, the Boardof Directors recommended a one-tier tax exempt interim dividend of5.0 cents per share. This is 40% higher than the 3.57 cents one-tiertax exempt interim dividend paid in 1H 2007.RevenueYearDescription2Q 2008(S$m)Turnover by Sectors2Q 2008(S$m)Financial Highlights2Q 2007(S$m)2Q 2007(S$m)%change%changeIH 2008(S$m)IH 2008(S$m)IH 2007(S$m)IH 2007(S$m)%changeShip Repair 194.5 183.5 6.0 382.9 346.1 10.6Rig Building 861.3 560.1 53.8 1,345.4 1,114.0 20.8Ship Conversion / Offshore 312.7 262.9 18.9 535.0 460.4 16.2Shipbuilding 1.2 29.3 (95.9) 2.0 55.9 (96.4)Others 16.4 15.8 3.8 36.9 28.9 27.7TOTAL 1,386.1 1,051.6 31.8 2,302.2 2,005.3 14.8IH 2008IH 20072Q 20082Q 20070 250 500 750 1000 1250 1500 1750 2000 2250$ million%changeRevenue 1386.10 1051.60 32 2,302.20 2,005.30 15Gross Profi t 137.90 80.40 72 234.70 160.90 46EBITDA 128.30 88.00 46 223.60 175.30 28Operating Profi t 111.50 74.00 51 190.90 148.10 29Pre-tax Profi t 160.70 106.70 51 275.90 191.40 44PATMI 128.30 85.10 51 219.60 158.80 38EPS, basic (cents) 6.23 *4.14 51 10.62 *7.74 37Networking in progress after the briefing*Adjusted for 2 for 5 Bonus issue in 200712Jul - Aug 2008

SCM : NEWSJurong SML Receives Minister for Defence AwardMr Freddie Woo, Executive Director of Jurong SML, receivingthe prestigious Minister for Defence Award from Mr TeoChee Hean, Minister for DefenceCelebrating the award winJurong SML, a subsidiary of Sembcorp Marine, was awarded the prestigious Minister for Defence Award, the pinnacle awardpresented by the Ministry of Defence (MINDEF) in recognition of employers and civil resource owners who have demonstratedoutstanding efforts and steadfast support for national defence.The Minister for Defence Award was presented to Mr Freddie Woo, JurongSML’s Executive Director, during the Total Defence Awards ceremony, graced byGuest-of-Honour Mr Teo Chee Hean, Minister for Defence, on July 30, 2008.Nominated by the Royal Singapore Navy (RSN), Jurong SML was honoured forits operational readiness, serviceability of assets and commitment towards TotalDefence. In the awards citation, the yard was commended for its exemplaryperformance in the biennal validation exercise held recently in 2007.An active partner of RSN over the years, Jurong SML provides a dedicatedteam and ready facilities for the drydocking, repair and modifi cation of navyvessels, as well as maintenance services to the Police Coast Guards andMaritime and Port Authority of Singapore.The Minister for Defence Award is Jurong SML’s third defence award in fi veyears. It was previously awarded the Distinguished Defence Partner Awardby MINDEF in 2004 and 2006.Visit by the Investment CommunitySembcorp Marine and its subsidiaries Jurong Shipyard and Sembawang Shipyard hosted a group of over 30 fundmanagers and research personnel from Deutsche Securities on August 21, 2008.The visitors met with senior managers from theGroup who shared their insights into the Group’sbusiness and core capabilities. They were alsotreated to a tour onboard the ultra-deepwaternewbuild semi-submersible rig West Taurus inJurong Shipyard as well as an up-close view ofthe mega-FPSO conversion project Hai YangShi You 11 at Sembawang Shipyard for a betterunderstanding of the Group’s operations.A visit to Jurong Shipyard’s steel fabrication facilitiesJust before boarding the semi-submersible WestTaurus in Jurong ShipyardIn front of mega-FPSO conversion project HaiYang Shi You 11 at Sembawang ShipyardJul - Aug 200813

INNOVATIONDeveloping Breakthrough Ballast Water Treatment SystemSembcorp Marine Technology (SMT), the R&D arm ofSembcorp Marine, signed an agreement on August 1, 2008to develop the region’s first chemical-free ballast watertreatment system with technology partners.The project aims to develop a system in line with new regulations fromthe International Maritime Organization that require all newly built vesselsto be fi tted with a ballast water treatment system to minimise the risk ofharmful aquatic organisms being spread by ballast water from ships.Representatives from Sembcorp Marine Technology with partners from NgeeAnn Polytechnic, SIF Technologies, and MemiontecSupported by SPRING Singapore, the project will see SMT workingtogether with Ngee Ann Polytechnic’s Marine & Offshore Centreof Innovation, SIF Technologies, an environmental engineering fi rmspecialising in chemical-free water technology and Memiontec, a waterand waste water treatment company.Setting Industry Standards in WSH InnovationGold award winners from Jurong Shipyard’s Safe Stage Team in celebrationInnovation teams from Jurong Shipyard and Sembawang Shipyard stole the limelight when their creative inventions garneredfive of the eight awards presented at the 11th Marine Industry Workplace Safety & Health (WSH) Innovation Convention, anevent organised by the Association of Singapore Marine Industries and supported by the WSH Council on July 24, 2008.Gold AwardSembawang Shipyard’s Hull Spiderz Team and Mechrosoft Team displayingtheir gold and silver awards respectivelyCongratulations to the winning teams for their achievements in WSH innovation!HP Hook – Safe Stage Team(Jurong Shipyard, Hull Painting Dept)Designed to enhance safety whileworking at heights, the “HP Hook”creates an extended outlet forthe secure hooking of the safetyharness to ‘scallop holes’. The“HP Hook” also doubles up asan additional anchor point for thesecond safety life line to preventfalling and swinging hazards. This signifi cantlyenhances safety and reduces falling hazards duringscaffold work.Semi-Automatic Lifting Gears (Spider Grab)– Hull Spiderz Team (Sembawang Shipyard, Hull Dept)The “Semi-Automatic Lifting Gears” innovation, alsoknown as the “Spider Grab”, is a customised liftingdevice with a semi-automatic locking mechanismto aid the process of lifting and handling irregularshaped outfi tting items. The “Spider Grab” eliminatesthe need to weld eye plates, thus enhancing workeffi ciency while minimising the safety risks andmaterial damage associated with hotwork andgrinding. The device, which can be operated froma distance, also enables workers to keep a safedistance from the lifting works.14Jul - Aug 2008

INNOVATIONProviding Insights Into InnovationMr Wong Weng Sun, President andChief Operating Officer of SembcorpMarine and Managing Director ofJurong Shipyard, was invited bythe Singapore Police Force (SPF)to be a guest speaker at their SPF 3i(Ideas, Improvement and Innovation)Convention 2008 on August 12, 2008.Mr W S Wong, Managing Director of JurongShipyard, relating Jurong Shipyard’s innovationexcellence journeyMr Khoo Boon Hui, the Commissioner of Police,presenting a token of appreciation to Mr W S Wong atthe conventionA strong advocate of continuous R & D and improvement, Mr Wong shared about Jurong Shipyard’s innovation journey and milestones,including winning the Innovation Excellence Award by SPRING Singapore in 2007. In his presentation, he stressed the importance ofintegrating innovation into every aspect of the company and for top management to lead by example to drive innovation across all levels.The insightful sharing by Mr Wong and top innovation teams from the police force was an inspiration to many who left the venue with freshperspectives and new strategies on re-inventing innovation at the workplace.VISION Team from Jurong Shipyard taking home the silver awardJurong Shipyard’s Safe Scaff Team receiving the bronze awardSilver AwardComplete Sensor – VISION Team(Jurong Shipyard, Jurong Integrated Services)The “Complete Sensor”enables the timely detection ofpeople and objects in the pathof traveling machinery such asoverhead cranes, CNC platecutting machines, and weldinggantries to prevent collision incidents. When an obstruction isdetected, the system’s sensing line triggers off a tactile switchwhich temporarily disables the machine. It also comes with anemergency switch which serves as an additional back-up forgreater protection. This innovation has resulted in enhanced safetyin the workshops and greater morale among employees.Rudder Nut Turner – Mechrosoft Team(Sembawang Shipyard, Mechanical Dept)The Rudder Nut Turner isan innovative device whichprovides a stable supportplatform for the refi ttingof the rudder nut duringpropulsion works. This is amore stable and secure alternative than the conventional turntablemethod, where workers are exposed to material falling hazards.The device also enables easier alignment and greater ease whenrefi tting rudder nuts. Besides minimising the likelihood of incidentsand “pinch point” injuries, higher productivity is also achieved withrefi tting time sped up by 35%.Bronze AwardPortable Platform – Safe Scaff Team (Jurong Shipyard, Seah Marine Engineering)The Portable Platform was developed to provide scaffolders a‘temporary platform’ and a secure standing point in the ship’scargohold for the manual distribution of scaffold materialsin areas where air winches cannot be set up. Comprising agrated platform, the light-weight Portable Platform is designedwith 2 secure points made up of 4 hooks to be secured tothe ladders to provide workers with a proper foothold insteadof having to juggle their weight on the ladder. This enhancessafety during the scaffold erection process and leads toincreased morale on the job.Jul - Aug 200815

HAPPENINGSSouthern Ridges Nature TrekLush greenery, fresh air and scenicsights coupled with good companymake for a great walking adventure andan excellent workout.Flag-off by Jurong Shipyard’s Managing DirectorMr W S WongSmile every mile – Journeying through the connectorbridgeMaking their way up the long flight of stepsStriking a pose at the finishing pointMore than 100 management and staff fromJurong Shipyard shared a fun-fi lled day ofexercise on July 19, 2008 when they took part ina half-day trek organised by the Jurong ShipyardRecreation Club through the Southern Ridges,one of Singapore’s latest nature attractions.Flagged off by Jurong Shipyard’s ManagingDirector Mr W S Wong, the walk took participantsfrom the Marang Trail behind Harbourfront MRT,to key attractions along Southern Ridges’ 9kmchain of green open spaces, including the 36m-tallHenderson Wave, the highest pedestrian bridgein Singapore connecting Mount Faber Park toTelok Blangah Park, and HortPark at Alexandra.The trekking party made their fi nal stop at KentRidge Park, where they indulged in a healthyfeast of tropical fruits such as durians, coconuts,mangosteens and longans to quench their thirstand revive their spirits.Celebrating the successful trek with a fruits feastLearning to Communicate EffectivelyEmployees from Jurong Shipyard learnt the techniques behind good interpersonalskills during a two-day Communication and Relationship Management Workshoporganised by the yard’s Human Resource Department on August 14 and 15, 2008.Through interactive role-play and practical examples, this course aimed to impart three important skills to theattendees – supporting and encouraging effective communication at the workplace, facilitating effective workteamand developing and implementing confl ict resolution strategies.Nothing beats learning through role-playRunning the Half-MarathonA group of energetic runners from Jurong Shipyard participated in the SAFRA SingaporeBay Run and Army Half-Marathon on August 23, 2008.Setting off as early as 7.30 am on a Saturday morning, the participants raced from EsplanadeDrive towards the iconic Benjamin Sheares Bridge and through the 350m-wide MarinaBarrage and Suntec City area before fi nishing off at the Padang.A sense of achievement after completing the runThe marathon brought much fun, excitement and a sense of achievement to the participants,who took the chance to deepen their friendships with one another.Dolphin is a bi-monthly publication of Sembcorp Marine Ltd and itssubsidiary Jurong Shipyard Pte Ltd. No part of this newsletter may bereproduced or transmitted by any means or stored in any information storageand retrieval system without the publishers’ written permission.Contact us :The Editorial Team • 29 Tanjong Kling RoadSingapore 628054 • ir@sembcorpmarine.com.sgFor more information, visit us at : www.sembcorpmarine.com.sg • www.jspl.com.sg