Dolphin Nov-Dec08.pdf - Jurong Shipyard Pte Ltd

Nov - Dec 2008Newly Named PETROJACK IV Well on TrackDelivery of WEST TAURUS & EMERALD DRILLERAhead of ScheduleSail-away of FPSO HAI YANG SHI YOU 117

YARD NEWSDelivery of WEST TAURUS Ahead of ScheduleAll smiles at the rig’s delivery successJurong Shipyard, a wholly owned subsidiary of SembcorpMarine, has successfully delivered WEST TAURUS, thesecond of a series of four turnkey 6th generation dynamicpositioningultra-deepwater semi-submersible rigs built forNorway’s leading energy group Seadrill Limited, a weekahead of schedule on November 7, 2008.WEST TAURUS, which follows after the successful delivery of thefi rst sister unit WEST SIRIUS in March 2008, has since set sail onits maiden voyage to Brazil where it will be deployed for developmentdrilling operations under a six-year charter with Petrobras, Brazil’snational oil company.Heralding a major milestone for Jurong Shipyard, WEST TAURUS is thefi rst semi-submersible rig built using the yard’s proprietary “TransverseSkidding” methodology in combination with the “Load-out and Matingin-Dock”technique. By leveraging on these breakthrough techniques,the yard is able to increase its capacity to deliver more than two semisubmersiblerigs a year, while achieving high standards of quality, safetyand reliability.The Friede & Goldman Millennium Class Ex-D design WEST TAURUSis capable of drilling up to 37,500 feet in ultra-deepwaters of up to10,000 feet. Equipped with dynamic positioning capabilities, the rig isdesigned with an operational displacement of 43,400 metric tons at 17metres draft and 46,750 metric tons at 20 metres draft. It has 18,000square feet of usable deck space and is able to carry a variable deckload of up to 8,000 tons.Expressing his delight at the yard’s early rig delivery, Mr Alf C. Thorkildsen,CEO and President of Seadrill Limited, said: “A truly fantastic achievement.The WEST TAURUS is the second semi-submersible drilling rig that JurongWest Taurus, the second of four 6th generation ultra-deepwater Friede andGoldman Millenium Class Ex-D design semi-submersible rigs built by JurongShipyard for Norway’s Seadrill Limited, was delivered ahead of scheduledelivered turnkey to Seadrill and most importantly the completion is aheadof schedule. In these challenging times, it is important for us to deliver andSeadrill congratulates Jurong Shipyard once again for this feat. We nowhave a partnership that delivers on promise and we look forward to moremilestones in the future.”Mr Wong Weng Sun, Managing Director of Jurong Shipyard, said: “Theearly delivery of the WEST TAURUS is a fi rm endorsement of our innovativecapabilities in fast-track rig construction and our status as a leading builderof highly sophisticated semi-submersible rigs. The joint commitment andteamwork by Jurong Shipyard, Seadrill and our project partners, vendorsand contractors have made this milestone achievement a reality.”Key representatives from Jurong Shipyard and Seadrill teams commemorating the success of WEST TAURUS02Nov - Dec 2008

Jurong Bags MODEC FPSO Conversion DealYARD NEWSJurong Shipyard has secured an approximately S$200 million contract to convert the Very Large Crude Carrier (VLCC) tanker,the MV “PSVM” (ex Bourgogne), to a Floating Production Storage and Offloading (FPSO) vessel for MODEC, an internationaloffshore company specialising in the EPIC, operation and maintenance of floating production systems.This conversion contract involves the installation of an external turretmooring system and process facilities, which include gas turbinegenerators, oil separation, gas injection/gas lift and water injectionsystem. Planned delivery to MODEC is scheduled in 1Q 2011.Designed to operate for 20 years without dry-docking, the FPSO willhave a production capacity of 150,000 barrels of oil per day and astorage capacity of 1.6 million barrels of oil.VLCC tanker Bourgogne will be converted into an FPSO to be named MV “PSVM”The FPSO will be delivered to BP for deployment in the Plutão,Saturno, Vênus and Marte (“PSVM”) Fields in Block 31 offshoreAngola, located in water depths of between 1,500 and 2,500m.Sierra in Ship-shapeSierra, a 264.88m x 41.51m x 21.85m tanker owned by SeaRiver Maritime Inc. United States, drydocked inJurong Shipyard in November 2008, more than two and a half years after its last visit in March 2006.Jurong Shipyard’s repair team undertookthe task of providing a thorough inspectionfor the 125,091 dwt tanker, followed by theblasting and painting of the ship’s underwaterhull, main deck and the accommodation areaas well re-tubing of the port and starboardboiler economizers.Superintendent Ms Cecilia Barbara Martingave the go for Sierra’s sail-away in December2008 following the vessel’s successful repaircompletion with zero lost-time incidents.Sierra undergoing repairsSighting of Star IndianaStar Indiana, a 43,956 dwt bulk carrier owned byMasterbulk Pte Ltd and managed by Westfal LarsenManagement AS, was sighted when she made herappearance in Jurong Shipyard between end Octoberto early November 2008 for a series of repairs.The eight-year old bulk carrier which measures 198.5m x31.0m x 19.0m underwent a list of major works comprisinghull blasting and painting, rudder works, aligning the completeshafting system as well as inspection and painting of the gantrycranes main cable reels.Star Indiana leads the wayNov - Dec 200803

YARD NEWSAntares Marks Chevronʼs SixthThe alliance team marking their repair achievementAntares Voyager, the sixth and final Chevron Shipping tanker scheduled for repairs in 2008, called at JurongShipyard from end November to mid December, the second time since visiting in 2007.The 309,996 dwt Very Large Crude Carriermeasuring 333.00m x 58.00m x 31.25munderwent a series of overhauling jobs at theyard, including hydro-blasting and coating of waterballast tanks and fore peak tank, accommodationfront and bridge wing under-deck coating repairs,hull blasting and coating, as well as shaft sealsand cargo pumps overhauling.In line with the Chevron-Jurong hallmark of highquality, health, safety and environment standards,the repairs went smoothly and were completedwithout lost-time incident and to the owner’ssatisfaction.In addition to Antares Voyager, Jurong Shipyardhad completed the repairs for fi ve other Chevrontankers in 2008, including Vega Voyager inNovember, Altair Voyager in August, NeptuneVoyager and Regulus Voyager in May andAntonis I. Angelicoussis in March.Antares Voyager before repairsRepair success: Antares Voyager is the sixth and final Chevron tanker scheduled for repairs in 200804Nov - Dec 2008

YARD NEWSTopic series well coveredElena Topic poised for another chapter in her journeyElena, Olga and Anton – bulkcarriers from Marfin ManagementS.A.M (Monaco Cedex) – were“Topics” well covered by JurongShipyard when they came by for aseries of repairs in recent months.Sail-away of Anton Topic in OctoberThe latest arrival, 49,928 dwt Elena Topic,docked at Jurong Shipyard between midto end November 2008, while 45,483 dwtOlga Topic and 45,496 dwt Anton Topiccalled respectively in September andOctober this year.All three ships underwent standardrepairs including hull blasting and painting,underwater works, cargo hold close-upsurvey, steel plate and sea pipes renewal,sea valves overhaul and installation of newSVDR systemOlga Topic setting off in SeptemberAdditional works in the vessel repair mixincluded tailshaft survey, renewal of thestern tube seal, reinforcing of the hatchcoaming, cargo hold hatch cover packingrenewal and double bottom tank zincanodes installation.Nov - Dec 200805

COVER STORYNewly Named PETROJACK IV Well On TrackPETROJACK IV, the fourth deep-drilling offshore jack-up rig contracted to Jurong Shipyard by LarsenOil & Gas’ subsidiary PetroJack ASA (PetroJack), is well on track for deployment offshore Thailandfollowing its successful completion by the yard within schedule.Naming of PETROJACK IV by Lady Sponsor Mrs Anchulee Gunavibool in the presence of (from left) MrBerge Gerdt Larsen, owner of Larsen Oil & Gas Group, her husband His Excellency Ambassador NopadolGunavibool, Ambassador of Thailand to Singapore, Mr Martin Nordaas, Project Director of PetroJack andGeneral Manager of Larsen Oil & Gas, and Mr Wong Weng Sun, President & Chief Operating Officer ofSembcorp Marine and Managing Director of Jurong ShipyardPETROJACK IV, the fourth Pacific Class 375 deepdrillingjack-up rig by Jurong Shipyard, is onschedule for delivery in January 2009The turnkey construction completionof PETROJACK IV was marked onDecember 13, 2008 in a namingceremony presided by Lady SponsorMrs Anchulee Gunavibool, the wife ofHis Excellency Nopadol Gunavibool,Thailand’s Ambassador to Singapore,in the presence of key representativesfrom the owner PetroJack, the chartererThailand’s PTT Exploration & ProductionPublic Company Limited (PTTEP) andJurong Shipyard.The jack-up rig is scheduled to set sail inmid-January 2009 for a fi ve-year charterwith PTTEP and is expected to begindrilling operations in the Gulf of Thailandby the end of January 2009.PETROJACK IV is the fourth unit of aseries of four jack-up rigs originallyordered by PetroJack ASA, whichsubsequently sold the fi rst and thirdunits to Maersk Contractors. Its sisterrig unit PETROJACK II was successfullyJoyous occasion: Lady Sponsor, VIPs and key representatives rejoicing the rig naming06Nov - Dec 2008

COVER STORYVIPs enjoying their stop-over at the rig’s heli-deckLady Sponsor and VIPs in good cheerdelivered to PetroJack in March 2008and is currently managed by Saipem andoperating in Saudi Arabia under a fouryearcharter with Saudi Aramco.Built based on the Group’s proprietaryPacifi c Class 375 design, PETROJACKIV is designed for operational effi ciencyand performance with a state-of-the-artdrilling package enabling it to drill highpressureand high-temperature wells ofup to 30,000 feet whilst operating in 375feet of water. The rig features extensivedeck space and a large jacking capacityfor preload jacking, with accommodationfor 120 men.Mr Martin Nordaas, Project Director ofPetroJack and General Manager of LarsenOil & Gas, said: “The on-time completionof this high-performance deep-drillingjack-up rig named PETROJACK IV is anoutstanding achievement. We have foundin Jurong Shipyard a trusted partner and ashipyard that delivers on its promiseseven in this challenging environment.PETROJACK IV leaves shortly for a fi veyearcharter with PTTEP, Thailand. Wewish her every success throughout thischarter, and look forward to the formationof the same trusted relationship with thecharterer PTTEP as we have with JurongShipyard.”Explaining the sophisticated controls onboardMr Wong Weng Sun, President & ChiefOperating Offi cer of Sembcorp Marineand Managing Director of JurongShipyard, said: “We would like tothank the teams from both PetroJackand Jurong Shipyard for achieving theturnkey completion of PETROJACK IVon schedule and attaining high standardsof work, in terms of quality and safety. Iwould like to wish PetroJack and LarsenOil & Gas all the best and success withthis high performance jack-up in its drillingoperations in the Gulf of Thailand.”Cheers to the success of PETROJACK IV!Lady Sponsor holding the lucky scroll to usherprosperity and success for PETROJACK IVAdding beauty to the occasion with their gracefuldanceExchanging corporate gifts to mark a successfulpartnershipNov - Dec 200807

SCM : AROUND THE YARDSEarly Delivery of Emerald Driller by PPL ShipyardPPL Shipyard, a subsidiary of Sembcorp Marine, has successfullydelivered the first unit of a series of four Pacific Class 375 deepdrillingoffshore jack-up rigs to Vantage Drilling Co. of USA morethan 48 days ahead of schedule.The Vantage Group had assumed ownership of the four jack-up rigs in mid 2008after acquiring Offshore Group Corp, which had originally ordered the rigs fromPPL Shipyard.To be named Emerald Driller in a ceremony in January 2009, the newly deliveredrig has secured a two-year contract with Pearl Energy for deployment in the Gulfof Thailand, with options for extension.A high-performance jack-up built based on PPL Shipyard’s proprietary Pacifi c Class375 deep-drilling design, Emerald Driller is equipped with high-pressure and hightemperaturedrilling capabilities of 30,000 feet whilst operating in water depths ofup to 375 feet. The rig also has a huge jacking capacity for full preload jacking,high variable deck load, and extensive useable deck space, with accommodationfor 120 persons.Emerald Driller is the first of a series of four proprietarydesign Pacific Class 375 jack-up rigs built by PPL Shipyard forVantage Energy DrillingEmerald Driller is the 12th successful delivery of a series of 23 Pacifi c Class 375jack-up rigs in PPL Shipyard’s rig-building orderbook.Sembcorp Marine Bags Evergreen Favoured Customer ContractSembcorp Marine has been awarded an evergreen favoured customer contract (FCC) from International Gas TransportationCompany Limited (IGTC) to provide repairs, upgrades and other marine services for its fleet of seven LNG ships which areoperated by North West Shelf Shipping Service Company Pty Ltd (NWSSSC) on behalf of North West Shelf Venture.This contract, signed in December 2008 by MrNoel Hart, General Manager of NWSSSC onbehalf of North West Shelf Venture’s parentshipping company IGTC, and Ms Wong Lee-Lin, Executive Director of Sembcorp Marine’ssubsidiary Sembawang Shipyard, signifi esthe fi rst time that a major LNG operatorhas committed to an evergreen long-termmaintenance and refi t contract.With the signing of this evergreen FCCagreement, six Venture-owned Moss-RosenbergLNG carriers and one membrane LNG carrierare scheduled to undergo major refi ts andregular maintenance in the Group’s subsidiariesSembawang Shipyard and Jurong Shipyardrespectively from 2009.Mr Noel Hart, General Manager of NWSSSC,said: “This contract marks another milestonefor NWSSSC and Sembcorp Marine andwill ensure that NWSSSC, on behalf ofInternational Gas Transportation CompanyLimited (IGTC), can continue todeliver safe, reliable and high qualityLNG transportation services to theNorth West Shelf Venture’s NorthAsian customers.”Ms Wong Lee-Lin, Executive Directorof Sembawang Shipyard, said: “This isa signifi cant achievement for SembcorpMarine as it is the fi rst evergreen FCCcontract signed between a renownedLNG ship operator and a Singaporeshipyard group. As part of the Group’s strategyto become the world leader in the repairsand life extension of LNG carriers, we haveachieved an important step in getting into thebig league of specialised LNG carriers refi tand life extension work. We are honouredand grateful to be awarded this contract byNWSSSC. We look forward to delivering valueaddedimprovements for both our organisationsand to setting international benchmarks for themaintenance standard of LNG carriers.”Signing ceremony: Ms Lee-Lin Wong, Executive Director ofSembawang Shipyard and Mr Noel Hart, General Managerof NWSSSCNWSSSC provides advice and expertiseto assist IGTC in managing its fl eet ofseven LNG carriers and ensuring the safe,effi cient and reliable transportation of gason behalf of the North West Shelf Ventureparticipants, BHP Billiton Petroleum PtyLtd, BP Australia Shipping Pty Ltd, ChevronAustralia Transport Pty Ltd, Japan AustraliaLNG (MIMI) Downstream Services Pte Ltd,Shell Development (Australia) Pty Ltd andWoodside Petroleum Holdings Pty Ltd.08Nov - Dec 2008

SCM : AROUND THE YARDSSMOE & Sembawang Shipyard CelebrateFPSO HAI YANG SHI YOU 117 Sail-awayThe FPSO preparing for sail-awayA sail-away success : Hai Yang Shi You 117 is the fourth and by far the largest project jointly undertaken bySMOE and Sembwang ShipyardSembcorp Marine’s subsidiaries SMOE and Sembawang Shipyard witnessedthe sail-away of Floating Production Storage Offloading (FPSO) vessel Hai YangShi You 117 on December 15, 2008 following the successful modularizationand integration of 22 topside modules and hull carry-over work by the yards.Hai Yang Shi You 117 enroute to Peng Lai Field atChina’s Bohai BayThe FPSO will be deployed at China’s secondlargest oilfi eld, the Peng Lai Field in Bohai Bay,where ConocoPhillips China Inc., a unit of theUS-based conglomerate ConocoPhillips, isdeveloping the massive Peng Lai 19-3 PhaseII Oil Development Project in cooperation withCNOOC Ltd.Prior to Hai Yang Shi You 117’s sail-away, bothyards together with ConocoPhillips and CNOOCcelebrated the vessel’s completion and itsimpending sail-away in a ceremony on November24, 2008. Lady Sponsor Mrs Hilde Johanseninaugurated its completion in the presence ofher husband Mr Trond-Erik Johansen, President(Asia Pacifi c) of ConocoPhillips, Mr GeorgeStoraker, President of ConocoPhillips China,Mr Zhou Shouwei, President of CNOOCLimited, as well as senior management andstaff from ConocoPhillips, CNOOC, SMOE andSembawang Shipyard.Notably, Hai Yang Shi You 117 is one of theworld’s largest FPSO and also the largest projecthandled by both yards. SMOE undertook themodularisation of 32,000 tonnes of steel intomodules while Sembawang Shipyard integratedthe modules and handled carry-over work onthe hull measuring 323m long by 63m wide and32.5m high. Apart from its 2 million barrels ofoil storage capacity, the vessel also has a dailyprocessing capacity of 190,000 barrels of oiland 510,000 barrels of fl uid.An Impressive Safety RecordThis project made history with a safetyperformance that was never before achieved.At sail-away, a total of 25 million manhours wererecorded. This is an impressive feat, consideringthat at peak; more than 2,800 men were workingon the job.Frank Jordan, the FPSO Manager forConocoPhillips China noted that 25 millionLTI-free manhours is the best safety recordever achieved in the whole of ConocoPhillips.Speaking from extensive offshore experience,Frank expressed: “In projects, we say quality,safety and schedule. You can have two out ofthree but you can never have all three. But Ithink in this project, we have gotten all three.”In a further testament of its exemplary HSEsystem, the project also achieved recognitionawards from Singapore’s Ministry of Manpowerin 2007 and 2008.VIPs and key representatives commemorating the success of Hai Yang Shi You 117The joint collaboration of SMOE and SembawangShipyard also completed three other LTI-freeprojects, namely, FPSOs ERHA and Sea Eagle,both for Nigeria as well as FPSO NorthernEndeavour for Australia.Nov - Dec 200809

SCM : FINANCIAL RESULTSSembcorp Marineʼs 3Q08 ResultsSembcorp Marine announced a strong 3Q 2008 growthon November 4, 2008 with increased earnings of 73% to$140.9 million.This increase was achieved on a group turnover of $1,144.2 million. Groupoperating profi t increased 92% to $142.1 million in 3Q 2008 from $74.1million in 3Q 2007. Group pre-tax profi t increased by 88% to $180.9 millionfrom $96.4 million in 3Q 2007. The increase is mainly attributable to higheroperating margins from rig building and ship repair businesses and bettercontribution from associated companies.On a nine-month period basis, Group turnover increased by 9% to $3,446.5million from $3,176.4 million in 9M 2007. Group operating profi t increasedby 50% to $333.1 million in 9M 2008 from $222.2 million in 9M 2007.Group pre-tax profi t increased by 59% to $456.8 million from $287.7 millionin 9M 2007. The increase is attributable mainly to higher operating marginsfrom the rig building and ship repair businesses and better contribution fromassociated companies. Group attributable profi t grew by 50% to $360.5million from $240.2 million in 9M 2007.Engaging the Investor CommunityA special post-results briefi ng was organised for analysts fromthe investor community on November 5, 2008 to provide deeperinsights into the Group’s 3Q 2008 performance.Sembcorp Marine’s Group President & Chief Executive Offi cerMr KK Tan together with senior management from the Groupwere present to share their views and respond to queries fromthe analysts.Through the meaningful interactions exchanged, it was clear thatthe briefi ng had succeeded in further strengthening communicationlinks between Sembcorp Marine and its investor community.Financial HighlightsYear 3Q 2008 3Q 2007 % 9M 2008 9M 2007 %Description (S$m) (S$m) change (S$m) (S$m) changeRevenue 1,144.20 1171.10 (2) 3,446.50 3,176.40 9Gross Profi t 158.60 91.40 74 393.30 252.30 56EBITDA 160.50 93.20 72 384.10 270.30 42Operating Profi t 142.10 74.10 92 333.10 222.20 50Pre-tax Profi t 180.90 96.40 88 456.80 287.70 59PATMI 140.90 81.40 73 360.50 240.20 50EPS, basic (cents) 6.84 3.95 73 17.45 11.70 49Mr KK Tan, Sembcorp Marine’s Group President & CEO, sharing hisinsights with analystsOutlookThe current global fi nancial outlook and economic conditions are challenging.The Group however has a strong net order book of $9.9 billion comprisingrig building, ship conversion and offshore projects. This includes new ordersof $5.5 billion secured since January 2008. These projects will providethe Group with a solid base-load, and will keep its shipyards busy withprogressive completion and deliveries from 4Q 2008 until 2012.The Group is in a strong net cash and balance sheet position and expectsthe current year’s overall performance to be stronger than FY 2007.For the future, ship repair demand is expected to remain strong amid globaltightness in yard capacity and support from the Group’s long-term customers.Fundamentals for the offshore sector is also expected to remain intact. In thelong term, exploration and production (E&P) activities will continue, in order toreplace declining global oil and gas reserves and to increase production.The replacement of the ageing world rig fl eet and the demand for deepwaterunits should resume when the global fi nancial crisis abates and economicconditions improve.Although the current fi nancial turmoil has a dampening impact onworld economy and global demand for oil, the Group is confi dent thatthe long-term fundamentals and outlook for the marine and offshoreindustry will remain positive .Ms Judy Han, Sembcorp Marine’s Senior Vice-president of InvestorRelations & Communications, responding to queriesRevenueTurnover by Sectors3Q 2008(S$m)3Q 2007(S$m)%change9M 2008(S$m)9M 2007(S$m)%changeShip Repair 210.7 189.3 11.3 593.6 535.4 10.9Rig Building 631.4 648.6 (2.7) 1,976.8 1,762.6 12.2Ship Conversion / Offshore 285.2 306.2 (6.9) 820.2 766.6 7.0Shipbuilding - 14.8 n.m. 2.0 70.7 (97.2)Others 16.9 12.2 38.5 53.9 41.1 31.1TOTAL 1,144.2 1,171.1 (2.3) 3,446.5 3,176.4 8.59M 20089M 20073Q 20083Q 20070 380 760 1140 1520 1900 2280 2660 3040 3420$ million10Nov - Dec 2008

SCM : NEWSRecord SchoolBAG Contribution of $300,000 to Needy RecipientsSembcorp Marine made a record contribution of $300,000 this year under its School Book Assistance Grant (SchoolBAG)programme to help more needy students and their families during the current economic slowdown.SchoolBAG Recipients“The School Book Assistance Grant is very helpful as itenables me to have the funds to buy assessment booksand stationery items that I need next year. Without havingto worry about raising the money to buy the items, I canbetter concentrate on performing well in next year’sexamination”Pang Kang Jie, Sec 3 student, Christ Church SecondaryRepresentatives from Yuhua Primary School presenting a gift of gratitude to MrWS Wong, President & COO of Sembcorp Marine, in the presence of Guestof-HonourMr K Shanmugam, Minister for Law & Second Minister for HomeAffairs, MP for Sembawang GRC.“The School Book Assistance Grant helps alot in lighteningthe financial load of my family for purchases such asschool uniform, school shoes and daily pocket money”Wong Wei Ting, Pri 4 student, Fuchun PrimaryA total of 1,492 student recipients benefi tedfrom the $300,000 SchoolBAG donation thisyear, representing an 18.88% increase inrecipients from 1,255 last year and a 13.4% risein grant contribution as compared to $264,550in 2007. The number of participating schools hasalso increased from 102 schools in 2007 to 107schools this year.As part of Sembcorp Marine’s CommunityCare and Social Responsibility programme, theSchoolBAG scheme was launched in December2001 to provide fi nancial assistance to helplow-income families subsidise their children’sA young recipient receiving her SchoolBAG grantfrom Mr K Shanmugambasic education expenses, such as schooltextbooks, uniforms and stationery items. Sincethe SchoolBAG programme’s inception sevenyears ago, more than $1.56 million in grants havebeen disbursed to 7,565 recipients studying inthe communities around subsidiary yards JurongShipyard and Sembawang Shipyard.To enable more to benefi t from the SchoolBAGprogramme, the scheme was broadened in 2007with the raising of the combined family incomecriterion from $1,250 to $1,500. Last year, thescheme was also extended to student recipientswith other fi nancial assistance not exceedingmore than $200 for Primary, $400 for Secondaryand $600 for Junior College/Pre-U/ITE levels.The SchoolBAG presentation ceremony atChrist Church Secondary School was gracedby Guest-of-Honour Mr K. Shanmugam,Minister for Law and Second Minister for HomeAffairs, Member of Parliament for SembawangGRC, who presented the grants to studentrepresentatives from the participating schools.Lauding the Group for its community care efforts,Mr K Shanmugam, Minister for Law and SecondMinister for Home Affairs, Member of Parliamentfor Sembawang GRC, said, “I am heartenedto note that even in this challenging economiccondition, Sembcorp Marine in fact has increasedthe grants this year ... (so that) more studentscan qualify. That exemplifi es corporate citizenryand we salute Sembcorp Marine from the bottomof our hearts.”Mr Wong Weng Sun, President & Chief OperatingOffi cer of Sembcorp Marine, said: “We haveincreased our funding for the SchoolBAGscheme to $300,000 this year to reach outto more needy students and their families inlight of the challenging economic situation. Theadditional SchoolBAG funding is a refl ection ofour continuous commitment to make a positivedifference to the community as a sociallyresponsible corporate citizen. Through this,we hope to encourage and inspire our studentrecipients to excel in their studies and realizetheir fullest potential in life.”Student recipients with Guest-of-Honour, Mr K. Shanmugam, Minister for Law & Second Minister for Home Affairs, MP for Sembawang GRC, with key representativesfrom Sembcorp Marine and the Ministry of Education at the SchoolBAG presentation ceremony.12Nov - Dec 2008

SCM : NEWSDouble Platinum and Gold in Singapore H.E.A.L.T.H AwardsSembcorp Marine’s subsidiary yards Jurong Shipyard, Jurong SML and Sembawang Shipyard bagged top accoladesduring Health Promotion Board’s Singapore HEALTH (Helping Employees Achieve Lifetime Health) Award 2008 ceremonyon November 20.Jurong Shipyard and Jurong SML set amilestone by being the fi rst in the industry toachieve the Platinum HEALTH Award, whileSembawang Shipyard took home the GoldHEALTH Award for the second consecutivetime. In addition, Jurong SML was also therecipient of the Smoke-free Award, a specialaward presented to organisations which havein place comprehensive and effective quitsmokinginitiatives at the workplace.The Platinum HEALTH Award – the highestform of recognition in the Singapore HEALTHAward – honours organisations whichhave attained at least two Gold Awardsconsecutively and have demonstratedtangible results in their workplace healthpromotion programmes. The tenure of thePlatinum Award is four years, during which theorganisation is exempted from participating inthe Singapore HEALTH Award.Celebrating together: Sembcorp Marine’s Jurong Shipyard, Jurong SML and Sembawang Shipyardrepresentatives displaying their Singapore HEALTH AwardsMr Wong Peng Kin (in left photo), Jurong Shipyard’s Senior General Manager of Human Resource, and MrLee Chak Tiong (in right photo), Jurong SML’s General Manager, receiving the Platinum Singapore HEALTHAwards from Guest-of-Honour Mr Khaw Boon Wan, Minister for Health, on behalf of their yardsMs Eleana Choy, Sembawang Shipyard’s Managerof Human Resource, receiving the Gold SingaporeHEALTH Award from Mr Lucas Chow, Chairman ofHealth Promotion Board.Singapore HEALTH AwardsJurong Shipyard Jurong SML Sembawang Shipyard• 1 Platinum (2008)• 3 Gold (2004 to 2006)• 4 Silver (2000 to 2003)• 1 Platinum (2008)• 2 Gold (2005 to 2006)• 2 Silver (2003 to 2004)• 1 Bronze (2002)• 2 Gold (2008, 2006)• 2 Silver (2003 to 2004)• 1 Bronze (2002)* Note: In 2007, HPB changed the Singapore HEALTH Awards from an annual event to a biennial eventSuccess FactorsJurong Shipyard and Jurong SML’s“double platinum” achievement along withSembawang Shipyard’s gold award in theSingapore HEALTH Award are attributed totheir comprehensive and effective WorkplaceHealth Promotion (WHP) programmes.The yards encourage employees to lead ahealthy and active lifestyle through a host ofworkplace health promotion programmes ontopics ranging from healthy eating to stressmanagement. Family Wellness Programmesare also organised to help employees achievea healthy work-life balance.To enable the early identifi cation and targetedtreatment of employees with chronic diseases,free annual health screening programmesare also provided to arrest illnesses suchas diabetes, high blood pressure, stroke,hypertension and high cholesterol. Beyondcaring for employees, Jurong Shipyard alsohas a Chronic Disease Medical Plan for RetiredEmployees which subsidises 80% of themedical treatment costs for those diagnosedwith such illnesses during their employment.To encourage a fi t and healthy lifestyle,regular workplace fi tness classes rangingfrom aerobics to belly dancing are held tomake exercise accessible for employees. Inaddition, sporting competitions and outdooractivities are also organised outside of workto promote active living.Tangible ResultsSince embarking on the WHP programme inthe late 90s, the yards have reaped signifi cantresults. Jurong Shipyard has seen markedimprovements in cholesterol and bloodpressure levels over the years as well ashealth screening participation improving from28% in 2000 to almost 78% in 2007. Averagemedical cost per employee has also droppedby one-third for the same period.Jurong SML’s targeted interventions on smokers,hypertension, overweight and diabetes have alsoshown good progress. The yard’s quit-smokinginitiatives and smoking cessation programmein particular have shown notable results, asevidenced by a reduction in the prevalence ofsmoking from 36% in 2002 to 19.2% in 2007.Nov - Dec 200813

HAPPENINGSParticipation in Marine & Offshore Industry ConferenceSenior management representatives from Sembcorp Marine and its subsidiary Jurong Shipyard shared insights duringa marine and offshore industry conference jointly organised by the Association of Singapore Marine Industries andSPRING Singapore on December 10, 2008.With the theme “Meeting Global Challengesand Opportunities in the Marine and OffshoreIndustry”, the conference saw SembcorpMarine’s representative Mr Wee KengHwee, Senior Vice-president of CorporateDevelopment, outlining the Group’s strategiesin meeting the challenges ahead and positioningfor long-term sustainable growth.Conference in progressMr Wee noted that the Group will continuebuilding on the strengths of its Singapore yardsby maximising operational effi ciency as wellas investing in people development, R&D andinnovation. It will also look out for growth andexpansion opportunities into new and emergingmarkets as part of its Global Hub Strategy.Mr Seow Tan Hong, Jurong Shipyard’s SeniorGeneral Manager of Engineering, spoke on“Trends and Challenges in Floating ProductionStorage and Offl oading (FPSO) Conversionsin Singapore”. To stay ahead of technologicaltrends and competition from FPSO newbuildingyards and lower-cost yards in the region,Mr Seow observed that the way ahead is forMr Wee Keng Hwee (on left), Sembcorp Marine’s SeniorVice-president of Corporate Development, and Mr SeowTan Hong (on right), Jurong Shipyard’s Senior GeneralManager of Engineering, sharing their insightsSingapore yards to re-invent themselves,strengthen their capabilities, and move towardshigh-value turnkey projects. He added thatyards can also explore regional partnershipopportunities to leverage on complementarystrengths for synergistic benefi ts.Group Mentoring Relationship ProgrammeAs part of continuous efforts to build a diverse high-performing team, Sembcorp Marine has initiated a Mentoring RelationshipProgramme to encourage effective transfer and sharing of knowledge and skills across functions and the Group.The six-month Mentoring RelationshipProgramme, which commenced in October2008, seeks to provide avenues for knowledgeProviding an overview of the Mentoring RelationshipProgrammeexchange, experience sharing as well as two-waycommunication and feedback among mentors andmentees from the Group and its subsidiary yards.Through various learning activities, scheduledmeetings and communication channels, mentorswill guide mentees towards the achievement ofmentoring objectives and development goals.Apart from enhancing Group synergy andcommunication, the programme also enablesmentors and mentees to acquire fresh insights,broaden perspectives on organisational issues aswell as extend their personal and organisationalnetworks.Mentorship discussion in progressDrilling a Strong Safety CultureConducting a post-exercise briefing for corporateoffice personnelSafety evacuation drills are a vital part of Jurong Shipyard’s strategy of instillingemergency readiness and safety consciousness among its workforce. This year,a total of 34 emergency and fire evacuation drills were conducted, including 12 forworkshops and offices as well as 22 drills onboard ships and rigs at both JurongShipyard’s Tanjong Kling and Pulau Samulun locations.14Briefing workers during a workshop drillNov - Dec 2008Involving both employees and subcontractors,these exercises cover a range of scenarios,providing the opportunity for Health Safetyand Environment personnel to practice theircrisis response techniques and for employeesto familiarise themselves with emergencyevacuation procedures.Evacuating a mannequin during an emergencyexercise onboard

HAPPENINIGSBowling Up a StormDynamic rolls and power strikes were part of the highenergyaction during Jurong Shipyard’s annual bowl-offon November 15, 2008 as 24 teams from the yard and itssubsidiaries pitted their skills at the Jurong Super Bowl.Going for the strike: (from left) Jurong Shipyard’s Managing Director Mr WSWong, Multi-purpose Co-operative Chairman Mr C.V. Nathan, and ExecutiveDirector Mr Lee Yeok Hoon rolling off the eventCategory1 st G4[1386]2 nd Cookies[1230]3 rd JSML (Ladies)[1214]ScoreboardTeamIndividualLadies Men Ladies MenThe Bowlers[2114]JSML (Men)[1949]Commercial[1777]Therese Ching[575]Connie Lim[562]Candy Tan[533]Tan Ah Sim[777]Steven Yeoh[764]Ken Wong[739]The exciting event, organised by the Jurong Shipyard RecreationClub, was rolled off by Jurong Shipyard’s Managing Director Mr WSWong and Executive Director Mr Lee Yeok Hoon as well as SMEEUJurong Shipyard Branch Chairman Mr Tan Ah Chye and JurongShipyard Multi-purpose Co-operative Chairman Mr C.V. Nathan.Besides bowling up a storm, participants also had the chance to strikeup new friendships and build closer networks at the sidelines of thisfriendly tournament.Keeping an eye on the scoreIt’s sweet victory for members of top ladies team“G4”Topping the scoreboard: Men’s category winner“The Bowlers” team displaying their challenge trophyCaring for Your BackAn aching back may be the result of improper posture or excessive strainwhile performing daily tasks or strenuous activity.Pulau Ubin AdventureTo educate employees on backache prevention, a workshop was recently organised forparticipants to learn more about the ailment and ways to minimise its occurrence.Learning stretching techniques to easethe strainA quick stretch goes a long wayAll geared up for some island adventureA group of fun-loving employees from JurongShipyard answered the call of nature byheading to Pulau Ubin on November 15, 2008for some isle adventure.Backache Prevention Tips Avoid sudden strain – Exercise regularly to strengthen supporting muscles andstretch frequently Use a cushion to support the small of your back when seated for prolong periods Sleep on your back with knees raised on a pillow or on your side with a pillowbetween the knees When lifting heavy objects, do not bend down from waist.◆ Size up load and get help if necessary◆ Bend your knees◆ Tuck your chin and keep your back straight◆ Keep the load close◆ Don’t twist from the waistThe wrong way!The right way!Besides engaging in some cycling fun, the adventure partyalso checked out the island’s sights and wildlife during thisfun-filled day-out.Striking a pose on wheelsNov - Dec 200815

HAPPENINGSOfficial Opening of Project Coordination CentreJurong Shipyard’s new Project Coordination CentreMr KK Tan, Sembcorp Marine’s Group President & CEO, snips the ribbon to mark the opening of the newProject Coordination Centre as Mr WS Wong, Sembcorp Marine’s President & COO and Jurong Shipyard’sManaging Director, looks onThe lucky lion performing the “cai qing” (pickingof greens) to symbolise success and blessings forthe new facilityAs part of the yard’s strategy to further enhance its operational capabilities, Jurong Shipyard expanded its facilities with theopening of a new Project Coordination Centre (PCC) on December 22, 2008.The offi cial opening of the Project Coordination Centre was markedby a ceremonial ribbon cutting and plaque unveiling by Mr KK Tan,Sembcorp Marine’s Group President & Chief Executive Offi cer,together with Mr WS Wong, Sembcorp Marine’s President & ChiefOperating Offi cer and Jurong Shipyard’s Managing Director.A pair of lucky lions added to the auspicious atmosphere and joyousmood as they performed the traditional “Cai Qing” (picking ofgreens) to usher in success and blessings for the new facility andthose working there.The four-storey Project Coordination Centre, situated at the yard’sTanjong Kling location, will serve as a strategic hub for the effectiveplanning, coordination and execution of the yard’s ship repair, shipbuilding,ship conversion, rig building and offshore engineering projects.Unveiling the plaque for the new centre amidst the shower of confettiInteracting with management and staff duringthe ceremonyDiscussion in progress in the meeting roomMr KK Tan and Mr WS Wong flanked by the luckylions in the new officeʼGreetings & Happy New Seasonʼs YearDolphin wishes everyone GOOD HEALTH, SUCCESS and BLESSINGS in 2009!Dolphin is a bi-monthly publication of Sembcorp Marine Ltd (Reg. No. 196300098Z)and its subsidiary Jurong Shipyard Pte Ltd (Reg. No. 199908265G). No part of thisnewsletter may be reproduced or transmitted by any means or stored in any16information storage and retrieval system without the publishers’ written permission.Nov - Dec 2008Contact 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