Lenge!Challenge! Conditions

Happenings Proactive Healthcare forfor EmployeesEmployees

Reflecting its care and concern for employees’ The objective of the health screening exercise welfare, Jurong Shipyard conducted its annual was to enable the early detection and prevention health screening from April 24 to 27, 2006. of common ailments such as high cholesterol, high blood pressure and diabetes. Employees

An employee taking a blood test. Business Reg. No.: 199908265G also had their body mass index checked to MICA (P) 004/06/2006 March - April 2006 determine if they fall into the overweight category.

With better awareness of their health condition, PetroMena Orders Second Eagerly signing up for the health screening. employees can then take the necessary follow-up actions to improve their health and Semi-sub atat US$480MUS$480M UnderstandingUnderstanding Health check in progress. well-being. Jurong Shipyard has signed a Letter of Intent AnxietyAnxiety DisorderDisorder with PetroMena AS, a Norwegian company DiscoveryDiscovery VietnamVietnam under the management of Larsen Oil and Gas, in March 2006 to build a second unit of a Friede & Stressful life events can trigger an Goldman ExD design semi-submersible drilling anxiety disorder. To increase employees’ A fun-filled trip to Ho Chi Minh City, rig for US$480 million. understanding of anxiety disorders, Jurong Vietnam, was the ideal weekend getaway Shipyard invited an occupational therapist for a group of holidaymakers from Jurong from Changi General Hospital to conduct Shipyard during the Good Friday holidays an insightful talk on the topic. from April 13 to 16 April, 2006.

A total of 53 participants attended the Organised by the Jurong Shipyard Recreation informative talk on the April 6, 2006, where Club (JSRC), the trip saw employees, along they learnt about the types, causes and with their friends and families, learning more symptoms of anxiety disorders and how about Vietnamese culture through visits to they can be treated. the war memorial and the Cu Chi tunnels, a fort used during the Vietnam War. The group also Representatives signing the letter of intent. Ways to overcome anxiety attacks include sampled native fruits and local delights on confiding in a trusted friend, learning a Dragon Island and explored the Central Market, The second Friede & Goldman ExD design semi- relaxation technique such as deep a shopping haven for bargain hunters. submersible drilling rig will have specifications breathing, meditation and imagery, and The Friede & Goldman ExD design 6th generation dynamic positioning semi-submersible will be built based on a similar seeking professional treatment such as Besides a wonderful time of sight-seeing and substantially identical to the first unit that was design as shown above. psychotherapy in serious cases. discovery, the vacation succeeded in building awarded by PetroMena in October 2005. The 6th closer bonds within the Jurong Shipyard family. generation ultra-deepwater semi-submersible tons at 17 metres draft and 46,750 metric tons shareholder of Oslo-listed DNO ASA (the drilling rig is capable of operating in 3,000 metres at 20 metres draft. The construction contract Norwegian Oil Company AS), said “We have yet water depth under harsh environmental drilling took effect in end March 2006 with delivery again experienced the benefit of maintaining TakingTaking thethe TeambuildingTeambuilding Challenge!Challenge! conditions. Suitable for operation in most of the scheduled not later than 15 December 2009. the professional relationship and cooperation world’s known challenging deepwater arena, enjoyed between the shipyard and our To forge stronger camaraderie and team spirit, greater synergy and enhanced performance the rig is engineered for stability and versatility The founder of Larsen Oil and Gas AS, Mr Berge group…..We are proud to bring this business a Teambuilding Challenge Programme was held through fun-filled games and outdoor activities. with operational displacement of 43,400 metric Gerdt Larsen, who is also Chairman and largest to Singapore in general and to the SembCorp at Sentosa Island on April 24 and 25, 2006 for A highlight of the programme involved Marine group in particular.” staff from various departments. challenging feats with high elements for participants to scale new heights of performance PetroMena AS is a Norwegian company under Participants were further equipped with with courage and confidence. the management of Larsen Oil and Gas, a teambuilding skills for effective communication, company involved in business development, technical, financial and operation management services and investments in the oil and offshore industries. Larsen Oil and Gas is also the Business Manager to drilling companies Petrolia Drilling ASA and Petrojack ASA.

Presently, Jurong Shipyard has a total of four semi-submersible drilling units on order, with A partnership sealed with a solid handshake and champagne - Mr Martin Nordaas, company representative of Larsen Oil and Gas, with Mr Don Lee, Jurong Shipyard’s Senior General Manager of Offshore. deliveries scheduled from 2008 to 2009. 12 Yard News Happenings FourthFourth Jack-upJack-up RigRig Enhancing Safety Awareness OrderOrder SecuredSecured in Steel Fabrication

urong Shipyard has added a fourth Baker Construction of the jack-up rig is expected to J s part of its continuous efforts to maintain Marine Pacific Class 375 Deep Drilling Jack-up commence in May 2006 with delivery scheduled A high safety standards, Jurong Integrated Services Rig worth US$165.5 million to its rig-building no later than December 2008. The jack-up rig (JIS), a subsidiary of Jurong Shipyard, launched orderbook after securing a jack-up construction will be built based on the proprietary Baker a Zero Accident Safety Campaign to further contract from JackInvest I Pte Ltd, a Singapore Marine Pacific Class 375 Deep Drilling design heighten awareness of steel fabrication safety. company managed by Norway’s Larsen Oil and developed by sister yard PPL Shipyard. The rig Gas AS, in April 2006. will be equipped with a drilling package, which enables it to drill high pressure and high temperature wells at 30,000 feet whilst operating on March 27, 2006, together with Executive in 375 feet of water, and has accommodation Director Mr Lee Yeok Hoon and as well as JIS for 120 men. management and staff. also took part in a Safety Quiz whereby prizes were awarded to the winners on April 27, 3D impression of the Baker Marine Pacific Class 375 Deep Chairman and main shareholder of DNO ASA Drilling Offshore Jack-up Rig. Opened to employees and subcontractors, the the last day of exhibition. (the Norwegian Oil Company AS), Mr Berge exhibition showcased informative posters Gerdt Larsen, who is also the founder and major At present, Larsen Oil and Gas AS, the drilling The campaign, along with a 30-day safety to reinforce participants’ knowledge of steel To further reiterate the safety message, shareholder in Oslo-listed PetroJack ASA, contractor for Petrolia Drilling ASA, PetroJack ASA exhibition, was officially launched by Jurong fabrication and hot work safety as well as JIS is planning to organise a Safety Slogan PetroMena AS and Petrolia Drilling ASA, said, and PetroMena AS, is managing construction Shipyard’s Managing Director Mr W. S. Wong, proper equipment handling on the job. Visitors Competition and a Safety Poster Competition “We are very happy to add one more order with programmes valued in excess of US$1.5 billion in July and October respectively as part of the Jurong Shipyard. Yet again, they have shown us with Jurong Shipyard, including four jack-up campaign’s highlights. they are in a position to give us first-class products rigs for PetroJack and two semi-submersibles Affirming the close partnership. at a very competitive price and delivery time." for PetroMena. P-54P-54 enen routeroute toto BrazilBrazil OverhaulOverhaul ofof GazGaz ProgressProgress Choice Careers forfor capablecapable talentstalents

To attract capable individuals and boost various yards were also there to provide career its talent pool, SembCorp Marine and its guidance and professional advice to jobseekers. subsidiary shipyards actively participated in this year’s Career Fair 2006, held at the With a turnout of over 43,000 visitors, Suntec International Convention and Exhibition including students, jobseekers and working Centre from March 2 to 5, 2006. adults, with a range of qualifications and The P-54 after its successful marine hull conversion in Jurong Shipyard. professional levels, the career fair drew a positive Gaz Progress, a LPG tanker owned by The career exhibition, organised by the response, enabling SembCorp Marine to fill a ollowing its successful marine hull conversion at 180,000 bpd, gas compression capability at F Naftomar Shipping & Trading Co. Ltd Singapore Professional Centre and supported Providing Guest-of-Honour Mr Gan Kim Yong, Minister of wide variety of job vacancies, ranging from in Jurong Shipyard, Petrobras 54 (P-54), a Floating 6 million m3/day and water injection capability State for Education and Manpower, an introduction to in Greece, docked at the yard between by the Ministry of Education, was officiated SembCorp Marine’s FPSO conversion capabilities. management to support staff. 3 Production Storage and Offloading (FPSO) vessel, at 39,000 m /day. January 20 and March 7, 2006 for by Mr Gan Kim Yong, Minister of State for set off at end April 2006 for Brazilian sister yard drydocking repairs and overhaul. Education and Manpower, saw the active Mauá Jurong. Converted from the 280,000 dwt involvement of SembCorp Marine’s VLCC Barao de Mauá, the P-54 will undergo the The 55,729 dwt LPG carrier with a cargo representatives from Jurong Shipyard, installation, integration and commissioning of capacity of 76,506 cubic metres underwent Sembawang Shipyard, PPL Shipyard and Jurong topside production modules, fabricated by the major steel works totalling 250 tons, SML Shipyard. Mauá Jurong, in Brazil. renewal of pipes, overhaul of main engine, pumps, heat-exchangers and purifiers, SembCorp Marine’s booth, located within the When completed, the FPSO will be one of the boiler survey and repair of LPG condensers Choice Engineering pavilion, attracted a steady largest converted FPSO units in the world, capable and heaters. flow of visitors who expressed interest in joining of full capacity oil production and treatment On tow to Mauá Jurong, Brazil, for topsides work. The FPSO model drawing much interest. the marine industry. Representatives from the Representatives attending to visitors at the booth. 02 11 Spotlight Yard News May Day Tribute SmoothSmooth SailingSailing forfor Northwest Swan for Management & Union Northwest Swan, a 73,673 dwt LNG carrier, sailed off from Jurong Shipyard in mid April after Two outstanding individuals from Jurong completing its first intermediate survey as part Shipyard’s management and union were of a long-term LNG contract awarded by North nominated by the Shipbuilding and Marine West Shelf Venture (NWS), an LNG consortium Engineering Employees’ Union (SMEEU) to receive equally owned by BP, BHP Billiton, Chevron Shipping, MIMI (a joint Mitsubishi and Mitsui awards during this year’s May Day Dinner company), Shell and Woodside companies. organised by the National Trades Union Congress (NTUC) at the Suntec Convention Centre on April 29, 2006.

The team that made it happen. Jurong Shipyard’s Senior General Manager of Human Resource, Mr Wong Peng Kin, who is guaranteed items as well as drydocking works. Management and union representatives sharing the joy. also SembCorp Marine’s Director of Group Human Through the dedicated efforts of project team Resource, was the recipient of the Medal of relations, as well as employees’ welfare, training accorded the Comrade of Labour Award in members and safety personnel from the owner Commendation Award for his continuous efforts and development. Mr Tan Ah Chye, Chairman recognition of his significant contributions to and project teams, the entire operation was in the promotion of good union-management of the SMEEU Jurong Shipyard Branch, was the union movement and workers. smooth-going with a zero-incident safety record. Recognising workers for exceptional safety performance. The long-term LNG repair contract, awarded by Medal of Commendation Award Recipient Calling at the yard in end March, the LNG carrier, NWS in October 2004, commits the retrofitting Mr Wong Peng Kin which has a membrane design and a cargo and drydocking of nine LNG vessels in the capacity of 138,000 cubic metres, underwent NWS fleet to Jurong Shipyard and sister yard a repair operation involving the overhaul of Sembawang Shipyard for a five-year term with Mr Wong Peng Kin’s firm belief in people welfare initiatives and his close involvement in valves, pumps and compressors, rectification of an option for extension of the contract. Northwest Swan set to sail. empowerment is evident from his active support the Jurong Shipyard’s Multi-purpose Cooperative of continuous training and skills upgrading for Society, which offers better value and returns to employees to develop to their fullest potential. employees through rebates and high dividend Docking of Maersk Series payment. As the Chairman of the Tripartite In 2004, Mr Wong spearheaded the Trainee Marine Job Re-creation Task Force, Mr Wong Four container vessels belonging to AP Moller of ballast tanks and the cleaning of fuel valves overhaul, propeller modified survey and Chargehand Scheme, which later evolved into led the drive in formulating and recommending Maersk called at Jurong Shipyard for repairs and oil tanks. Chastine Maersk departed after rebushing of the rudder pintle. The 30,420 dwt renewal between February 14 and March 17, 2006. successfully completing all repairs and renewals containership, measuring 198.60m x 30.25m x the marine sector Super V Scheme, to train and effective job and salary restructuring measures on March 1, 2006. 17.50m, set off on March 5, 2006, after groom workers, even those without prior for the marine sector. Having participated The first vessel that docked at Jurong Shipyard completing its repairs. experience, for supervisory positions within the actively in the Ministry of Manpower’s Advisory was 104,410 dwt Chastine Maersk, measuring Entering the shipyard next was Nexø Maersk, shipyard. By fostering close rapport and open Committee for the Prevention of Accidents 346.98m x 42.92m x 24.10m. The 15-day which arrived on February 21, 2006. This 12-day The third vessel, Sorø Maersk, a 104,750 dwt communication, Mr Wong paved the way for in Shipbuilding and Shiprepairing Industry repairs encompassed shipside painting, the repair had significant works such as shipside fully cellular containership, called at the Mr Wong Peng Kin, SembCorp Marine’s Senior VP of Group strong union-management synergy between the since 1995, Mr Wong’s commitment towards renewal of steel in tanks, the fitting of stack painting, bow thruster repairs, the cleaning and shipyard two days after Nexø Maersk on Human Resource and Jurong Shipyard’s Senior GM of Human Resource, receiving the Medal of Commendation Award from shipyard and SMEEU. Mr Wong’s people-centred health and safety won him the MOM Safety cones on tanktop in cargohold, the reinforcements renewal of steel repairs at fuel oil tanks, sea the February 23, 2006 for renewal of its stern Mr Lim Boon Heng, NTUC’s Secretary General and Minister tube bearing and container cones. Good in the Prime Minister’s Office. approach is reflected in the numerous employee Commendation Award in 2001. cooperation between the yard and the owners contributed to the successful delivery Comrade of Labour Award Recipient of the vessel on schedule 19 days later. Mr Tan Ah Chye Nysted Maersk, the last vessel in the series dockings, arrived on March 7, 2006. It underwent Mr Tan Ah Chye’s involvement in the trade As Chairman of the SMEEU Jurong Shipyard similar repairs and renewals as sistership Nexø union movement started in 1985 when the house Branch, Mr Tan has supported welfare Maersk, and an additional propeller hub and union was set up in Jurong Shipyard. initiatives for needy employees, including blades tip repair. The yard successfully finished providing loans and sponsoring bursaries for the repair within 10 days and Nysted Maersk set off on March 17, 2006. With a desire to be a voice for the workers, he their children’s schooling expenses. Besides came forward to serve and was elected treasurer focusing on workers’ welfare and benefit, he With dedication and commitment from the of the house union. When the house union also actively builds good industrial relations shipyard and owner repair teams, the Maersk merged into SMEEU, he was co-opted into in the shipyard through close communication series of projects progressed well and were the Executive Committee as Vice-President, and dialogue with management. incident-free. Mr Tan Ah Chye, Chairman of SMEEU Jurong Shipyard a position he still holds. Branch, being presented the Comrade of Labour Award. Family of Maersk vessels in the yard. 10 03 Feature SCM News NamingNaming ofof WanWan HaiHai 313313 StrengtheningStrengthening PresencePresence inin AsiaAsia PacificPacific MaritimeMaritime 20062006 Wan Hai 313, the third of six 2,646 TEU “Jubilee Class” container vessels built by Jurong Shipyard for Taiwanese containership operator With the aim of further strengthening its Wan Hai Lines, was delivered on April 21, 2006, presence in the region, SembCorp Marine shortly after its christening ceremony earlier in and its subsidiary shipyards Jurong Shipyard, the same month. Sembawang Shipyard, PPL Shipyard and Jurong SML Shipyard took part in the Asia Pacific Maritime 2006 exhibition, held from March 22 to 24, 2006.

Mrs Lim Hwee Hua, Minister of State for Transport and Finance, being briefed about the Group’s core expertise by SembCorp Marine’s representatives. Lady Sponsor Mrs Chen-Chang Wan Yun christening the vessel, together with Wan Hai Lines’ Chairman Mr Chen Chao-Hon and Jurong Shipyard’s Executive Director The exhibition, officiated by Guest-of-Honour Mr Lee Yeok Hoon. Celebrating the naming of Wan Hai 313. Forging close ties and networks. Mrs Lim Hwee Hua, Minister of State for Transport and Finance, and various other The containership was officially named Mr Chen Chao-Hon said that newbuild VIPs, saw more than 480 exhibiting companies Wan Hai 313 on April 17, 2006 by Lady Sponsor containership will be a significant addition to taking part. The event was well-attended by Mrs Chen-Chang Wan Yun, who graced the the company’s fleet, enabling Wan Hai Lines to 5,630 visitors from 55 countries including christening ceremony together with her husband further its expansion and growth worldwide. China, Germany, Japan, Korea, Norway, Malaysia, Wan Hai Lines’ Chairman Mr Chen Chao-Hon. Taiwan and the United Kingdom. Also there to witness this significant event Wan Hai 313, a proprietary design of Jurong A gathering of minds. were management and staff from Wan Hai Shipyard, is capable of high homogeneous Lines and Jurong Shipyard, including the container intake of more than 1,960 TEU at 14 Packed with networking events and technical yard’s Managing Director Mr Wong Weng Sun, tons per TEU while travelling at a high speed of forums, the Asia Pacific Maritime 2006 exhibition and Executive Director Mr Lee Yeok Hoon. Lady Sponsor displaying Wan Hai 313’s scroll of blessing. up to 23 knots. Measuring 213m x 32.2m x provided the Group an effective avenue to 16.5m, the container vessel is equipped with promote its offshore and marine engineering In his opening address, Mr Lee Yeok Hoon Mr Lee said, “This containership is a symbol 400 reefers and has a high container-carrying capabilities, as well as opportunities to interact extended his heartfelt appreciation to Wan Hai of our teamwork and resolution to keep our capacity of 2,646 TEU (1,688 TEU on deck and and explore collaborative partnerships with Lines, the largest intra-Asia container carrier, shipyard at the forefront of the very competitive 958 TEU in hold), with the ability to accommodate key industry players and associates from the for awarding Jurong Shipyard the contract to shipbuilding business.” two tiers of high-cube containers in the hold. A meeting point for discussion. Interacting with visitors at the booth. maritime sector. build the six high-specification containerships. Designed with lashing bridges, the hull has been Acknowledging the contributions of the people Expressing his confidence in Wan Hai 313’s specially engineered to minimise propeller- behind the ship’s design and construction, future success, Wan Hai Lines’ Chairman induced vibration for operational performance. Yard Visit byby PanamaPanama DelegatesDelegates

SembCorp Marine played host to a delegation The delegation, led by Panama’s Second Vice- of Panama government dignitaries when President His Excellency Mr Ruben Arosemena, they visited the company’s premises on met with SembCorp Marine’s senior March 1, 2006. management and learnt about the Group’s business and operations during an interactive briefing session.

Sharing session in progress. During the session, SembCorp Marine’s Group President & CEO Mr K. K. Tan, and Senior Vice- The fruitful visit provided guests and hosts President of Corporate Development Mr Wee an avenue to explore future collaboration Keng Hwee, also shared with visitors the possibilities and an opportunity to forge closer Group’s growth strategy and industry outlook. cross-border links and connections.

Marvelling at the spectacular celebration. Cheers to Wan Hai 313’s successful future! Exchanging ideas and insights. 04 09 SCM News Around the Yards 43rd Shareholders’ Meeting PPLPPL SecuresSecures FourthFourth SembCorp Marine, Jurong Shipyard’s parent AGM and EGM proceeded smoothly and the company, held its 43rd Annual General shareholders passed the proposed resolutions Jack-upJack-up RigRig fromfrom AwilcoAwilco Meeting (AGM) and an Extraordinary General set out in the agenda without modification. Meeting (EGM) on April 24, 2006, with the The luncheon reception that followed attendance of more than 100 shareholders. PL Shipyard, Jurong Shipyard’s sister yard, 375 Deep Drilling design, a proprietary design provided a meaningful platform for interaction P The session, which commenced at 11 am as and networking between shareholders has signed another rig building contract developed and owned by Baker Marine Pte Ltd, scheduled, saw lively exchanges and insightful and the management, enabling them to with Awilco Offshore ASA for the construction a wholly owned subsidiary of PPL Shipyard. sharing among the shareholders, the Group’s better understand the Group and its strategic of a fourth Baker Marine Pacific Class 375 The jack-up rig will be equipped with a drilling directors and top management. Both the operations. Registering their attendance prior to the meeting. Deep Drilling Offshore Jack-up Rig. package that will enable it to drill high pressure and high temperature wells at 30,000 feet The contract price for the jack-up rig is whilst operating in 375 feet of water. It has approximately in the region of US$132 accommodation for 120 men. million to US$142 million, pending final agreement on the cost for the drilling Awilco Offshore ASA has a long tradition equipment. The construction contract is an of 40 years’ experience in shipping and option that PPL Shipyard granted to Awilco operating offshore rigs worldwide. Awilco Offshore ASA in 2004 and which the latter Offshore, which owns 18.5% of Petrojack

Shareholders’ meeting underway. A shareholder raising his query for discussion. has now decided to exercise. ASA and 38% of Offshore Rig Services ASA, has invested in seven jack-up drilling rigs Construction of the rig is expected to commence under construction and two accommodation Bronze Award for AnnualAnnual ReportReport 20042004 in May 2006 with delivery scheduled in the units. The company also holds an option for second quarter of 2008. The jack-up rig will be the construction of one further jack-up drilling At the inaugural Singapore Corporate Awards built based on the Baker Marine Pacific Class rig at PPL Shipyard. (SCA), SembCorp Marine’s 2004 Annual Report was awarded the Bronze Award, under the Best The BMC Pacific 375 jack-up rig will be built based on the Annual Report category for Main Board listed above design. companies with a market capitalisation of more P-50P-50 BeginsBegins ProductionProduction atat AlbacoraAlbacora LesteLeste than $500 million.

The celebrated event was officiated by the Senior Mr W. S. Wong, SembCorp Marine’s President & COO and The Petrobras 50 (P-50) FPSO has begun The hull of the P-50 was converted from the Jurong Shipyard’s MD, receiving the Best Annual Report Minister Mr Goh Chok Tong, on March 7, 2006 Bronze Award from Mr J.Y. Pillay, Chairman of Singapore scope of disclosures beyond the minimum production on the Albacora Leste field in the 280,000 dwt Felipe Camarao by Jurong Shipyard Exchange. at the Raffles City Convention Centre. Touted to regulatory requirements in tandem with the Campos basin, offshore Brazil in April 2006, for Petrobras Netherlands B.V., a subsidiary of be the equivalent of the coveted Oscars, the SembCorp Marine’s 2004 annual report, needs of investors and other stakeholders. marking an important milestone in Brazil's goal Brazil’s Petrobras S.A. After the successful marine Singapore Corporate Awards seeks to honour judged by a 13-member panel comprising of attaining self-sufficiency in oil production. hull conversion, the FPSO then sailed off to corporate players and recognise the commitment representatives from accounting, finance, Keeping to high standards of corporate of listed companies and individuals in achieving investment, and media organisations as well as transparency and open communication, the highest levels of corporate governance and institutes of learning, was recognised for its SembCorp Marine also fulfilled both disclosure standards. financial reporting presentation and its wider mandatory accounting standards and voluntary practices issued and recommended by the Council of Corporate Disclosure and

Governance and The Institute of Certified Public The P-50 after her topsides integration and commissioning. Accountants of Singapore. Brazilian sister yard Mauá Jurong for installation, integration and commissioning of topside production modules.

PPL Shipyard, Jurong Shipyard’s sister yard, celebrated the milestone naming of its first in-house proprietary designed Baker Marine Pacific Class 375 (BMC Pacific 375) Deep Drilling Offshore Jack-up rig on March 8, 2006.

Official rig naming Bestowing blessings in progress. on the rig.

Celebrating with an auspicious lion dance. VIPs in attendance.

The jack-up rig, christened “Deep Driller I” by the capacity to drill high pressure and high Guest-of-Honour and Lady Sponsor, Mrs Lim Dotting the eyes to give life to the fortune lions. temperature wells of over 30,000 feet and has Hwee Hua, Minister of State for Transport accommodation for 120 men. and Finance, is owned by Kristiansand Sinvest Group, including Mr Bjarne Skeie, an impressive portfolio of proven jack-up rig Drilling Pte Ltd (Kristiansand), a joint venture Chairman of Sinvest ASA, and Mr Tomas Norrby, designs and the shipyard’s commitment to In his speech, Deep Drilling Invest’s Managing company between SembCorp Marine’s Managing Director of Deep Drilling Invest, leading-edge evolutions in rig technology. Director Mr Tomas Norrby praised the subsidiary Sembawang Shipyard (S) Pte Ltd, along with senior management and staff performance features of the BMC Pacific 375 and Sinvest ASA’s subsidiary Deep Drilling I from SembCorp Marine and PPL Shipyard. The high specification BMC Pacific 375 jack-up jack-up design as one which “the new generation Pte Ltd. Sinvest ASA has the option to purchase rig has the ability to operate in water depths of rigs need to have”. Elaborating on the merits the 82 per cent equity interest owned by Deep Driller I is the first of a series of 14 BMC of up to 375 feet and features increased deck of the design, he said, “Its overall capabilities SembCorp Marine, exercisable within 18 Pacific 375 jack-up rigs built based on a design capacity over competing rigs in the same league. allow these rigs to operate in deeper waters, drill months from the rig’s delivery date. researched and developed by PPL Shipyard Equipped with the time-tested Baker Marine in deeper wells and extend the well centre further and its subsidiary Baker Marine, a company Jacking System, Deep Driller I will be able to than earlier designs…(and also) features larger The landmark naming of Deep Driller I was based in Houston, Texas. The jack-up rig is a withstand storms and offer movement flexibility deck space, larger drilling loads, larger mud and witnessed by distinguished guests from the showcase of rig building expertise built up from without the use of a rack chock system. It has bulk capacities as well as an innovative living quarter design that again result in more onboard storage areas.” A majestic view of Deep Driller I. the way for a series of jack-up rigs ordered. The Deep Driller I will be chartered to Hardy Mr Ong Tian Khiam, Managing Director of PPL BMC Pacific 375 rig was designed to not just Exploration & Production (India) Inc for a Drilling Shipyard, said “The confidence and trust that meet, but exceed customer expectations. We are Contract in block CY-OS/2 offshore the East Sinvest ASA and its subsidiary Deep Drilling I looking forward to the success of the inaugural Coast of India for a period of two wells, with placed with us for this jack-up rig design paved charter of Deep Driller I in the Indian Ocean.” an estimated duration of around 130 days. The second contract will commence in direct continuation after Hardy Exploration & Production (India) Inc. for a period of 18 months plus two optional periods of six months each.

Happy smiles at a joyous occasion: (From right to left) Mr Tan Kwi Kin, Group President and CEO of SembCorp Marine, Dr Benety Chang, Deputy Chairman of PPL Shipyard, Mr Goh Geok Ling, Chairman of SembCorp Marine, Mr Ong Tian Khiam, Managing Director of PPL Shipyard, Guest-of-Honour and Lady Sponsor Mrs Lim Hwee Hua, Minister of State for Transport and Finance, Mr Bjarne Skeie, Chairman of Sinvest ASA, Mrs Skeie, and Mr Tang Kin Fei, President & CEO of SembCorp Industries. Commemorating a strong partnership. Mrs Lim Hwee Hua and VIPs onboard the rig. 06 07 SCM News Around the Yards 43rd Shareholders’ Meeting PPLPPL SecuresSecures FourthFourth SembCorp Marine, Jurong Shipyard’s parent AGM and EGM proceeded smoothly and the company, held its 43rd Annual General shareholders passed the proposed resolutions Jack-upJack-up RigRig fromfrom AwilcoAwilco Meeting (AGM) and an Extraordinary General set out in the agenda without modification. Meeting (EGM) on April 24, 2006, with the The luncheon reception that followed attendance of more than 100 shareholders. PL Shipyard, Jurong Shipyard’s sister yard, 375 Deep Drilling design, a proprietary design provided a meaningful platform for interaction P The session, which commenced at 11 am as and networking between shareholders has signed another rig building contract developed and owned by Baker Marine Pte Ltd, scheduled, saw lively exchanges and insightful and the management, enabling them to with Awilco Offshore ASA for the construction a wholly owned subsidiary of PPL Shipyard. sharing among the shareholders, the Group’s better understand the Group and its strategic of a fourth Baker Marine Pacific Class 375 The jack-up rig will be equipped with a drilling directors and top management. Both the operations. Registering their attendance prior to the meeting. Deep Drilling Offshore Jack-up Rig. package that will enable it to drill high pressure and high temperature wells at 30,000 feet The contract price for the jack-up rig is whilst operating in 375 feet of water. It has approximately in the region of US$132 accommodation for 120 men. million to US$142 million, pending final agreement on the cost for the drilling Awilco Offshore ASA has a long tradition equipment. The construction contract is an of 40 years’ experience in shipping and option that PPL Shipyard granted to Awilco operating offshore rigs worldwide. Awilco Offshore ASA in 2004 and which the latter Offshore, which owns 18.5% of Petrojack

Capable of operating continuously for 25 years without drydocking, the FPSO has a production capacity of 180,000 barrels per day, a gas compression capacity of 6 million m3 per day, a storage capacity of 2 million barrels of oil, and 3 The best of the best – Award recipients sharing a moment of pride with Senior Minister Mr Goh Chok Tong. SembCorp Marine representatives with the award. FPSO P-50 kick-starts production at Albacora Leste field. water injection capacity of 40,000m . 08 05 Feature SCM News NamingNaming ofof WanWan HaiHai 313313 StrengtheningStrengthening PresencePresence inin AsiaAsia PacificPacific MaritimeMaritime 20062006 Wan Hai 313, the third of six 2,646 TEU “Jubilee Class” container vessels built by Jurong Shipyard for Taiwanese containership operator With the aim of further strengthening its Wan Hai Lines, was delivered on April 21, 2006, presence in the region, SembCorp Marine shortly after its christening ceremony earlier in and its subsidiary shipyards Jurong Shipyard, the same month. Sembawang Shipyard, PPL Shipyard and Jurong SML Shipyard took part in the Asia Pacific Maritime 2006 exhibition, held from March 22 to 24, 2006.

Marvelling at the spectacular celebration. Cheers to Wan Hai 313’s successful future! Exchanging ideas and insights. 04 09 Spotlight Yard News May Day Tribute Smooth Sailing for Northwest Swan for Management & Union Northwest Swan, a 73,673 dwt LNG carrier, sailed off from Jurong Shipyard in mid April after Two outstanding individuals from Jurong completing its first intermediate survey as part Shipyard’s management and union were of a long-term LNG contract awarded by North nominated by the Shipbuilding and Marine West Shelf Venture (NWS), an LNG consortium Engineering Employees’ Union (SMEEU) to receive equally owned by BP, BHP Billiton, Chevron Shipping, MIMI (a joint Mitsubishi and Mitsui awards during this year’s May Day Dinner company), Shell and Woodside companies. organised by the National Trades Union Congress (NTUC) at the Suntec Convention Centre on April 29, 2006.

The team that made it happen. Jurong Shipyard’s Senior General Manager of Human Resource, Mr Wong Peng Kin, who is guaranteed items as well as drydocking works. Management and union representatives sharing the joy. also SembCorp Marine’s Director of Group Human Through the dedicated efforts of project team Resource, was the recipient of the Medal of relations, as well as employees’ welfare, training accorded the Comrade of Labour Award in members and safety personnel from the owner Commendation Award for his continuous efforts and development. Mr Tan Ah Chye, Chairman recognition of his significant contributions to and project teams, the entire operation was in the promotion of good union-management of the SMEEU Jurong Shipyard Branch, was the union movement and workers. smooth-going with a zero-incident safety record. Recognising workers for exceptional safety performance. The long-term LNG repair contract, awarded by Medal of Commendation Award Recipient Calling at the yard in end March, the LNG carrier, NWS in October 2004, commits the retrofitting Mr Wong Peng Kin which has a membrane design and a cargo and drydocking of nine LNG vessels in the capacity of 138,000 cubic metres, underwent NWS fleet to Jurong Shipyard and sister yard a repair operation involving the overhaul of Sembawang Shipyard for a five-year term with Mr Wong Peng Kin’s firm belief in people welfare initiatives and his close involvement in valves, pumps and compressors, rectification of an option for extension of the contract. Northwest Swan set to sail. empowerment is evident from his active support the Jurong Shipyard’s Multi-purpose Cooperative of continuous training and skills upgrading for Society, which offers better value and returns to employees to develop to their fullest potential. employees through rebates and high dividend Docking of Maersk Series payment. As the Chairman of the Tripartite In 2004, Mr Wong spearheaded the Trainee Marine Job Re-creation Task Force, Mr Wong Four container vessels belonging to AP Moller of ballast tanks and the cleaning of fuel valves overhaul, propeller modified survey and Chargehand Scheme, which later evolved into led the drive in formulating and recommending Maersk called at Jurong Shipyard for repairs and oil tanks. Chastine Maersk departed after rebushing of the rudder pintle. The 30,420 dwt renewal between February 14 and March 17, 2006. successfully completing all repairs and renewals containership, measuring 198.60m x 30.25m x the marine sector Super V Scheme, to train and effective job and salary restructuring measures on March 1, 2006. 17.50m, set off on March 5, 2006, after groom workers, even those without prior for the marine sector. Having participated The first vessel that docked at Jurong Shipyard completing its repairs. experience, for supervisory positions within the actively in the Ministry of Manpower’s Advisory was 104,410 dwt Chastine Maersk, measuring Entering the shipyard next was Nexø Maersk, shipyard. By fostering close rapport and open Committee for the Prevention of Accidents 346.98m x 42.92m x 24.10m. The 15-day which arrived on February 21, 2006. This 12-day The third vessel, Sorø Maersk, a 104,750 dwt communication, Mr Wong paved the way for in Shipbuilding and Shiprepairing Industry repairs encompassed shipside painting, the repair had significant works such as shipside fully cellular containership, called at the Mr Wong Peng Kin, SembCorp Marine’s Director of Group strong union-management synergy between the since 1995, Mr Wong’s commitment towards renewal of steel in tanks, the fitting of stack painting, bow thruster repairs, the cleaning and shipyard two days after Nexø Maersk on Human Resource and Jurong Shipyard’s Senior GM of Human Resource, receiving the Medal of Commendation Award from shipyard and SMEEU. Mr Wong’s people-centred health and safety won him the MOM Safety cones on tanktop in cargohold, the reinforcements renewal of steel repairs at fuel oil tanks, sea the February 23, 2006 for renewal of its stern Mr Lim Boon Heng, NTUC’s Secretary General and Minister tube bearing and container cones. Good in the Prime Minister’s Office. approach is reflected in the numerous employee Commendation Award in 2001. cooperation between the yard and the owners contributed to the successful delivery Comrade of Labour Award Recipient of the vessel on schedule 19 days later. Mr Tan Ah Chye Nysted Maersk, the last vessel in the series dockings, arrived on March 7, 2006. It underwent Mr Tan Ah Chye’s involvement in the trade As Chairman of the SMEEU Jurong Shipyard similar repairs and renewals as sistership Nexø union movement started in 1985 when the house Branch, Mr Tan has supported welfare Maersk, and an additional propeller hub and union was set up in Jurong Shipyard. initiatives for needy employees, including blades tip repair. The yard successfully finished providing loans and sponsoring bursaries for the repair within 10 days and Nysted Maersk set off on March 17, 2006. With a desire to be a voice for the workers, he their children’s schooling expenses. Besides came forward to serve and was elected treasurer focusing on workers’ welfare and benefit, he With dedication and commitment from the of the house union. When the house union also actively builds good industrial relations shipyard and owner repair teams, the Maersk merged into SMEEU, he was co-opted into in the shipyard through close communication series of projects progressed well and were the Executive Committee as Vice-President, and dialogue with management. incident-free. Mr Tan Ah Chye, Chairman of SMEEU Jurong Shipyard a position he still holds. Branch, being presented the Comrade of Labour Award. Family of Maersk vessels in the yard. 10 03 Yard News Happenings FourthFourth Jack-upJack-up RigRig Enhancing Safety Awareness OrderOrder SecuredSecured in Steel Fabrication

To attract capable individuals and boost various yards were also there to provide career its talent pool, SembCorp Marine and its guidance and professional advice to jobseekers. subsidiary shipyards actively participated in this year’s Career Fair 2006, held at the With a turnout of over 43,000 visitors, Suntec International Convention and Exhibition including students, jobseekers and working Centre from March 2 to 5, 2006. adults, with a range of qualifications and The P-54 after its successful marine hull conversion in Jurong Shipyard. professional levels, the career fair drew a positive Gaz Progress, a LPG tanker owned by The career exhibition, organised by the response, enabling SembCorp Marine to fill a ollowing its successful marine hull conversion at 180,000 bpd, gas compression capability at F Naftomar Shipping & Trading Co. Ltd Singapore Professional Centre and supported Providing Guest-of-Honour Mr Gan Kim Yong, Minister of wide variety of job vacancies, ranging from in Jurong Shipyard, Petrobras 54 (P-54), a Floating 6 million m3/day and water injection capability State for Education and Manpower, an introduction to in Greece, docked at the yard between by the Ministry of Education, was officiated SembCorp Marine’s FPSO conversion capabilities. management to support staff. 3 Production Storage and Offloading (FPSO) vessel, at 39,000 m /day. January 20 and March 7, 2006 for by Mr Gan Kim Yong, Minister of State for set off at end April 2006 for Brazilian sister yard drydocking repairs and overhaul. Education and Manpower, saw the active Mauá Jurong. Converted from the 280,000 dwt involvement of SembCorp Marine’s VLCC Barao de Mauá, the P-54 will undergo the The 55,729 dwt LPG carrier with a cargo representatives from Jurong Shipyard, installation, integration and commissioning of capacity of 76,506 cubic metres underwent Sembawang Shipyard, PPL Shipyard and Jurong topside production modules, fabricated by the major steel works totalling 250 tons, SML Shipyard. Mauá Jurong, in Brazil. renewal of pipes, overhaul of main engine, pumps, heat-exchangers and purifiers, SembCorp Marine’s booth, located within the When completed, the FPSO will be one of the boiler survey and repair of LPG condensers Choice Engineering pavilion, attracted a steady largest converted FPSO units in the world, capable and heaters. flow of visitors who expressed interest in joining of full capacity oil production and treatment On tow to Mauá Jurong, Brazil, for topsides work. The FPSO model drawing much interest. the marine industry. Representatives from the Representatives attending to visitors at the booth. 02 11 Happenings Proactive Healthcare forfor EmployeesEmployees

An employee taking a blood test. Business Reg. No.: 199908265G also had their body mass index checked to MICA (P) 004/06/2006 March - April 2006 determine if they fall into the overweight category.