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Jul - Aug 2009<br />

Coming Together<br />

with the Nation<br />

SeaDragon<br />

Orders Second<br />

Rig Unit<br />

MODEC Awards<br />

FPSO Conversion<br />

Contract<br />

Delivery of Muda<br />

Production Platform


YARD NEWS<br />

Second Rig Order from SeaDragon<br />

<strong>Jurong</strong> <strong>Shipyard</strong>, a wholly-owned subsidiary of Sembcorp Marine, has<br />

secured a second SeaDragon rig order in July 2009 to complete and deliver<br />

a Moss Maritime Full Dynamically Positioned (DP-3) Semi-submersible<br />

Drilling Unit.<br />

The 6-column bare-deck hull, built in a Russian<br />

yard, arrived at <strong>Jurong</strong> <strong>Shipyard</strong> in early June<br />

2009. Following its arrival, <strong>Jurong</strong> <strong>Shipyard</strong><br />

will proceed with the construction, outfi tting,<br />

furnishing, equipping, testing and completion<br />

of the bare-deck hull into an ultra-deepwater<br />

Mr Don Lee, <strong>Jurong</strong> <strong>Shipyard</strong>’s Senior General<br />

Manager of Offshore, together with Mr George<br />

Sutherland, Technical Director of SeaDragon<br />

<strong>Ltd</strong>, during the contract signing of the second<br />

SeaDragon rig order.<br />

semi-submersible drilling rig. The second unit is<br />

scheduled for delivery by end June 2011. The<br />

shipyard’s contract value for the second unit is<br />

US$237.3 million, excluding equipment supplied<br />

by the owner.<br />

This new rig will be built for a water depth rating<br />

of 10,000 feet and maximum drilling depth of<br />

30,000 ft. The rig’s ability to operate even in harsh<br />

environment gives it the multi-region fl exibility to<br />

operate worldwide as compared to its peers.<br />

Mr George Sutherland, Technical Director of<br />

SeaDragon <strong>Ltd</strong>, said: “We are delighted to be<br />

working with the world-class team at <strong>Jurong</strong> on<br />

this second project, which we are confi dent will<br />

result in a fi rst-class asset for charter in 2011.”<br />

Mr Don Lee, <strong>Jurong</strong> <strong>Shipyard</strong>’s Senior General<br />

Manager of Offshore Division, said: “We thank<br />

SeaDragon again for their trust and commitment<br />

in working with <strong>Jurong</strong> to realise this option after<br />

the fi rst contract was signed in April 2009. These<br />

The second SeaDragon bare-deck hull on arrival at<br />

<strong>Jurong</strong> <strong>Shipyard</strong>.<br />

two state-of-the-art semi-submersible rigs will<br />

complement the range of semi-submersibles<br />

that <strong>Jurong</strong> is building and demonstrates our<br />

versatility in undertaking projects with diverse<br />

complexities. We now have two fi rst of its class<br />

semi-submersible rigs to be delivered.”<br />

“We are pleased that, despite the current<br />

challenges due to the economic downturn and<br />

the credit crunch, our order book continues<br />

to strengthen. This rig order is testimony of<br />

the confi dence that our clients, partners and<br />

vendors have in the deepwater market and in<br />

particular <strong>Jurong</strong>’s proven track record and<br />

project execution capabilities. We are committed<br />

to deliver on our promise and to build on this<br />

foundation for many years to come.”<br />

Heavy-lift Jack-up Rig Launch<br />

The successful launching of a heavy-lift jack-up barge built by <strong>Jurong</strong> <strong>Shipyard</strong> for Aramco Overseas Company B.V.<br />

was celebrated on August 18, 2009 in a ceremony attended by key representatives from both companies.<br />

To be named ARB-3, the self-elevating heavy-lift, subsea pipe line repair<br />

and maintenance support unit is designed for operations in water depths<br />

between 5 to 60 meters in the Arabian Gulf.<br />

Heavy-lift jack-up barge successfully launched.<br />

Key representatives from <strong>Jurong</strong> <strong>Shipyard</strong> and Aramco commemorating the<br />

occasion.<br />

02<br />

Jul - Aug 2009


FPSO Conversion Contract from MODEC<br />

YARD NEWS<br />

<strong>Jurong</strong> <strong>Shipyard</strong> has secured an approximately S$160 million contract in August 2009 to convert the Very Large<br />

Crude Carrier (VLCC) tanker, the Ohdoh (ex Tohdoh), to a Floating Production Storage and Offloading (FPSO) vessel<br />

to be renamed “FPSO Kwame Nkrumah MV21” for MODEC Offshore Production Systems (Singapore) <strong>Pte</strong> <strong>Ltd</strong>.<br />

The conversion contract involves the conversion of the oil tanker to an<br />

FPSO that includes detailed engineering, installation and integration<br />

of 18 topside modules, installation of external turret and power<br />

generation, accommodation upgrading as well as extensive piping and<br />

electrical cabling works.<br />

Due for delivery in 1Q 2010, the “FPSO Kwame Nkrumah MV21”<br />

will be installed as part of the Tullow Ghana <strong>Ltd</strong> Phase 1 development<br />

plan in approximately 1,100 meters water depth on the Jubilee Field<br />

offshore Ghana, one of the largest oil fi elds discovered offshore West<br />

Africa in the past 10 years. The “FPSO Kwame Nkrumah MV 21” will<br />

be capable of processing more than 120,000 barrels of oil per day and<br />

160 mmscfd of production gas, injecting more than 230,000 barrels<br />

of water per day, and storing 1.6 million barrels of oil. The FPSO is<br />

designed to remain on the fi eld for up to 20 years without drydocking.<br />

MODEC is a general contractor specialising in engineering,<br />

procurement, construction and installation of fl oating production<br />

systems including Floating Production Storage and Offl oading (FPSO)<br />

Ohdoh (ex Tohdoh), a VLCC measuring 330m x 59m x 30m, on arrival at <strong>Jurong</strong><br />

<strong>Shipyard</strong> for conversion to FPSO Kwame Nkrumah MV21.<br />

vessels, Floating Storage and Offl oading (FSO) vessels, Tension Leg<br />

Platforms (TLPs), Production Semisubmersibles, Mobile Offshore<br />

Production Units (MOPUs) and other new technologies which will<br />

meet the challenges of various types of gas production fl oaters.<br />

MODEC also provides Floating Production System operation and<br />

maintenance services around the world.<br />

Gemini Voyager revisits <strong>Jurong</strong><br />

Hands in the air: The sign of success.<br />

<strong>Jurong</strong> <strong>Shipyard</strong> achieved yet another incident-free record for the repair and<br />

maintenance works carried out on the 310,138 dwt tanker Gemini Voyager<br />

when she made a routine visit in late July 2009.<br />

Owned by the yard’s alliance partner Chevron Shipping Company LLC, the activities carried<br />

out onboard the 333.00m x 58.00m x 31.25m vessel during the stopover included the<br />

installation of the incinerator, and oily water separator, hydro-blasting jobs for the fore peak<br />

tank, water ballast tanks, deck fi re and foam lines, and painting works.<br />

The tanker last visited the yard for drydocking repairs and modifi cations in September 2007.<br />

Gemini Voyager after her repairs.<br />

Jul - Aug 2009<br />

03


YARD NEWS<br />

Debut Visit by Elbtank Germany<br />

Elbtank Germany, a decade-old product chemical tanker owned by Germany’s Seaarland Shipping Management<br />

(Hamburg) GmbH & Co. KG, made its debut appearance in <strong>Jurong</strong> <strong>Shipyard</strong> between July and August 2009 to<br />

undergo a series of maintenance jobs.<br />

Among the critical jobs performed on the 35,407 dwt tanker which<br />

measures 184.60m x 27.43m x 17.00m comprise hull and water ballast<br />

tanks steel work renewal, anchor chain renewal and cylinder liner over-haul.<br />

After installing an underwater discharge line and hydraulic tubing, the<br />

team performed hull blasting and applied a new coat of paint on the<br />

vessel to conclude the job.<br />

A positive start to a successful collaboration.<br />

Makeover for Maritsa<br />

Maritsa, a 75,932 dwt bulk carrier<br />

belonging to Safety Management<br />

Overseas S.A, received the thumbsup<br />

to sail in early July 2009 after<br />

undergoing a series of rejuvenating<br />

repair treatments in <strong>Jurong</strong> <strong>Shipyard</strong>.<br />

The four-year-old Greek vessel, measuring<br />

225.00m x 32.30m x 19.30m, arrived in<br />

late June for repairs to ensure its continued<br />

seaworthiness and performance. Highlights<br />

of the operation included the overhaul of<br />

lifeboats, auxiliary oil fi red boiler mountings<br />

and sea valves, renewal of sea chest and hull<br />

anodes, stern tube seals and windlass brake<br />

lining, routine cleaning works, as well as hull<br />

blasting and painting.<br />

Greek beauty Maritsa brightly painted and ready to depart.<br />

04<br />

Jul - Aug 2009


YARD YARD NEWS NEWS<br />

Quick Fix for APL Spain<br />

The 76,009 dwt Japanese container vessel APL<br />

Spain set sail in early July following an urgent twoday<br />

stopover at <strong>Jurong</strong> <strong>Shipyard</strong>.<br />

Measuring 280.54m x 40.10m x 24.00m, the vessel, which is owned<br />

by Nissen Kaiun Co. <strong>Ltd</strong>, docked in the yard for stern tube seal rings<br />

renewal to ensure that the ship is in tip-top condition.<br />

Urgent repairs done for APL Spain.<br />

Capricorn Ace Shines Again<br />

Excel Marine Co. <strong>Ltd</strong>’s decadeold<br />

vehicle carrier Capricorn Ace<br />

regained her shine once again after<br />

completing repair and maintenance<br />

works at <strong>Jurong</strong> <strong>Shipyard</strong> in mid-<br />

August.<br />

The 5,707 dwt vessel which measures 129.93m<br />

x 22.30m x 20.98m last visited the yard in<br />

2007. For this latest round of repairs, the<br />

ship underwent a list of major jobs, including<br />

internal blasting and painting, withdrawal of the<br />

tailshaft, removal of mushroom ventilators and<br />

overhauling of the main engine’s turbocharger.<br />

In addition, the yard performed propeller<br />

polishing, rudder clearance, sea valves overhaul<br />

as well as hull cleaning and painting during her<br />

visit.<br />

Capricorn Ace by the quayside.<br />

Jul - Aug 2009<br />

05


FEATURE<br />

NDP 2009: Coming Together in Celebration<br />

To reaffirm its strong support and<br />

steadfast commitment to the nation,<br />

Sembcorp Marine continued its tradition<br />

of honouring Singapore’s independence<br />

by sponsoring this year’s National<br />

Day Parade (NDP) festivities and<br />

participating in the Parade & Ceremony<br />

marching segment.<br />

Held for the third time on the Marina Bay<br />

integrated fl oating platform built by Sembcorp<br />

Marine in 2007, the NDP 2009 celebrations<br />

on August 9 witnessed employees from the<br />

Group’s yards <strong>Jurong</strong> <strong>Shipyard</strong>, Sembawang<br />

<strong>Shipyard</strong>, PPL <strong>Shipyard</strong>, SMOE and <strong>Jurong</strong><br />

SML joining the nation in celebration.<br />

Marching past Singapore’s iconic landmarks.<br />

Mr WS Wong, Sembcorp Marine's President &<br />

CEO, showing his support.<br />

Celebrating with Singapore.<br />

Marching with Pride & Honour<br />

Months of training and rehearsals by the participants since early April culminated in an impressive<br />

performance marked by synchronized footwork and well-coordinated movements.<br />

Looking smart in their blue uniforms and fl ags fl ying high, members of Sembcorp Marine’s 81-<br />

member contingent did themselves and the Group proud by making a grand entrance as they sang<br />

the marching song ‘We Are One’ with pride and gusto. This year, the contingent took part in a 3.2<br />

km city march-past where participants had the opportunity to share their moment of pride with<br />

spectators beyond the parade grounds.<br />

True to the spirit of national day and the theme “Come Together”, the NDP 2009 journey saw<br />

the strengthening of ties and the forging of many new friendships amongst members within the<br />

Sembcorp Marine contingent.<br />

The Sembcorp Marine contingent takes its place among the nation's best.<br />

06<br />

Jul - Aug 2009


FEATURE Feature<br />

Together we made it happen! Sembcorp Marine’s marching contingent with senior management and trainers.<br />

Learning from the professionals.<br />

Having some fun during practice.<br />

Four months of hard work to perfection.<br />

A Tribute of Appreciation<br />

As a tribute to those who have made Sembcorp<br />

Marine’s NDP 2009 participation a major success, a<br />

well-deserved appreciation dinner was organised at<br />

The Carousel, Royal Plaza on Scotts on August 13 to<br />

thank participants for their invaluable contributions.<br />

Among those in attendance were key MINDEF offi cials<br />

A big thank you to the MINDEF<br />

trainers.<br />

from the Parade & Ceremony Committee as well as<br />

senior management representatives from Sembcorp Marine and its shipyards.<br />

During the event, participants each received certifi cates and tokens of appreciation for<br />

their dedicated efforts and hard work throughout the months of preparations.<br />

From the happy smiles that evening, it was evident that everyone present had a great time<br />

bonding over a delightful buffet spread and recollecting fond memories of NDP 2009.<br />

Commemorating Sembcorp Marine's successs in NDP 2009.<br />

Happy smiles of joy.<br />

Cheers to a job well done!<br />

A time of rejoicing.<br />

Jul - Aug 2009<br />

07


COVER STORY<br />

Sharing the Nationʼs Joy<br />

In a display of national pride and management-union synergy, personnel from Sembcorp Marine and its<br />

subsidiary <strong>Jurong</strong> <strong>Shipyard</strong> as well as the SMEEU (Shipbuilding and Marine Engineering Employees’ Union)<br />

<strong>Jurong</strong> <strong>Shipyard</strong> Branch came together to celebrate Singapore’s 44 years of independence.<br />

Gracing the ceremony as Guest-of-Honour was<br />

Mr Lim Hng Kiang, Minister for Trade and Industry.<br />

Speaking to more than 6,000 attendees, Mr Lim<br />

noted that while the worst of the economic crisis<br />

is probably over, the path to a full and sustained<br />

recovery will be a challenging one.<br />

Standing proud during the flag-raising.<br />

A warm welcome for Guest-of-Honour Mr Lim<br />

Hng Kiang, Minister for Trade and Industry.<br />

He urged Sembcorp Marine’s management<br />

and union leaders to continue to build on core<br />

capabilities, invest in R&D and engage in facilities<br />

upgrading to be ready for the next upturn. “It is<br />

during such times that companies with strong<br />

fundamentals, management foresight and a<br />

versatile workforce will stand out and become<br />

stronger when the global economy recovers,” he<br />

said.<br />

Despite the tough economic conditions, Mr WS<br />

Wong, President & Chief Executive Offi cer of<br />

Sembcorp Marine and Managing Director of <strong>Jurong</strong><br />

<strong>Shipyard</strong>, is optimistic about the industry’s long-term<br />

outlook and the Group’s strong positioning. “We<br />

have demonstrated our resilience and adaptability<br />

by weathering through the oil shocks of the ‘70s,<br />

the economic crisis of the ‘80s and the terrorism<br />

crisis of the ‘90s. I am confi dent that Sembcorp<br />

Marine will likewise be able to stay the course and<br />

navigate through the present challenging time,” he<br />

expressed.<br />

This year’s theme “Come together: Reaching<br />

out, reaching up” is apt as everyone must come<br />

together as a team to lend one another strength,<br />

said Mr Wong. It is also key to continue reaching<br />

out and engaging employees and customers so<br />

that the company is well-positioned to seize the<br />

opportunities when the economy rebounds.<br />

“We will continue to invest in people – our most<br />

important asset – to ensure the company’s<br />

sustainable growth. We must also focus on giving<br />

the best service to our customers by timely delivery,<br />

competitive costing and maintaining high standards<br />

of safety and health,” he added. In reaching up, it is<br />

important to “up our productivity and competitiveness<br />

as we prepare for the upturn”, shared Mr Wong, by<br />

innovating and adopting long-term growth strategies.<br />

He also shared about his pride in watching the<br />

Sembcorp Marine contingent march on the fl oating<br />

platform which the Group built in 2007 and his<br />

personal joy in celebrating his first National Day as a<br />

Singapore citizen.<br />

Encouraging everyone to stay united, Mr Wong said,<br />

“Like our contingent as they march forward with<br />

determination and purpose … we must adopt this<br />

same spirit of solidarity… I am confident that we<br />

can surmount the challenges ahead with the strong<br />

support of our union, management and workers.”<br />

This year’s National Day awards presentation<br />

saw three categories of awards being given out<br />

– the Workplace Safety & Health (WSH) Innovation<br />

Convention Champion Award, the WSH Supervisor<br />

Award, and the Six Million Man-hours Without Losttime<br />

Incidents Award.<br />

Participating employees in attendance.<br />

Mr Lim Hng Kiang celebrating Singapore’s 44 th birthday during a cake-cutting ceremony together with senior management from Sembcorp Marine and <strong>Jurong</strong><br />

<strong>Shipyard</strong> as well as key union representatives.<br />

08<br />

Jul - Aug 2009


SCM : NEWS<br />

1H 2009 Financial Results<br />

Sembcorp Marine’s turnover for the half year of 2009<br />

at $2,861.1 million showed a 24% increase to the<br />

corresponding period in 2008 at $2,302.2 million. Group<br />

operating profit increased 58% to $301.3 million as<br />

compared with $190.9 million the previous year.<br />

At the pre-tax level, Group profi t increased 20% to $330.1 million from<br />

$275.9 million in 1H 2008. The increase was due mainly to higher operating<br />

margins from rig building, offshore and ship conversion projects offset by<br />

the lower contribution from the Cosco <strong>Shipyard</strong> Group. Group attributable<br />

profi t for 1H 2009 at $258.3 million was 18% higher as compared with<br />

$219.6 million recorded in 1H 2008.<br />

1H 2009<br />

1H 2008<br />

Revenue Contributions by Sectors<br />

Turnover by Sectors<br />

Revenue<br />

(S$’m)<br />

1H<br />

2009<br />

1H<br />

2008<br />

%<br />

Change<br />

Ship repair 368.9 382.9 (3.7)<br />

Rig building 1,789.7 1,345.4 33.0<br />

Ship Conversion/offshore 681.5 535.0 27.4<br />

Shipbuilding - 2.0 n.m.<br />

Others 21.0 36.9 (43.1)<br />

Total 2,861.1 2,302.2 24.3<br />

0 300 600 900 1200 1500 1800 2100 2400 2700<br />

$ million<br />

Financial Highlights<br />

Year<br />

Description($’m)<br />

1H 2009 1H 2008 % Change<br />

Revenue 2,861.10 2,302.20 24.30<br />

Gross Profi t 339.20 234.70 44.50<br />

EBITDA 336.90 223.60 50.70<br />

Operating Profi t 301.30 190.90 57.80<br />

Pre-tax Profi t 330.10 275.90 19.70<br />

PATMI 258.30 219.60 17.60<br />

EPS, basic (cents) 12.56 10.62 18.30<br />

Interim Dividend<br />

In line with the Group’s strong performance for 1H 2009 and the need<br />

to conserve cash for growth opportunities, the Board of Directors<br />

recommended an interim one-tier tax-exempt dividend of 5.00 cents per<br />

share, payable to shareholders on September 1, 2009.<br />

Outlook<br />

The Group has a net order book of S$7.91 billion with completion and<br />

deliveries stretching till early 2012. This includes the S$1.12 billion order<br />

contracts secured to-date since the end of 2008 comprising the building-up<br />

of two units of ultra-deepwater harsh environment semi-submersible rigs from<br />

bare-deck hulls for subsidiaries of SeaDragon Offshore Limited, two offshore<br />

platforms for Premier Oil Natuna Sea and an FPSO conversion for MODEC.<br />

Notwithstanding the current economic downturn and the restricted fi nancing<br />

and liquidity environment for owners, the long-term fundamentals for the<br />

marine and offshore industry remain resilient with oil prices back to the<br />

US$60 to US$70/bbl range.<br />

For ship repair, the near-term prospect is challenging. Nevertheless,<br />

Sembcorp Marine’s bigger docks are at present well-booked due to the<br />

strong support of Alliance/FCC and regular customers and the Group’s<br />

niche market segment of LNG carriers.<br />

The market for FPSO units and production platforms is expected to remain<br />

unchanged as these projects have longer gestation periods and constitute<br />

part of the owners’ investment portfolio designed to provide future output<br />

to replace depleting reserves.<br />

Connecting with Retail Investors at AICE<br />

To further reach out to investors and the general public, Sembcorp Marine participated in the inaugural Asian<br />

Investment Conference and Exhibition (AICE) 2009 organised by the Securities Investors Association of<br />

Singapore (SIAS) from July 18 to 19.<br />

Targeted at retail, mass affl uent and high<br />

network investors both in Singapore and the<br />

region, the two-day conference cum exhibition<br />

aims to provide a platform for companies and<br />

investors to connect and interact.<br />

Interacting with visitors at the booth.<br />

Sembcorp Marine representatives with Mr David<br />

Gerald, President of SIAS.<br />

Through its participation and presence at the<br />

exhibition, Sembcorp Marine had the opportunity<br />

to understand sentiments among investors and<br />

members of the public, respond to their queries,<br />

as well as share with them about the Group’s<br />

business and operations.<br />

Providing an overview of the Group’s core businesses.<br />

Jul - Aug 2009<br />

09


SCM : AROUND SCM : NEWS THE YARDS<br />

SMOEʼs Heaviest Topside Delivered as Committed<br />

A group photo to commemorate the occasion.<br />

SMOE, a subsidiary of Sembcorp Marine, completed its mega offshore project – an 18,000-metric-tonne Central<br />

Processing Platform – right on schedule to a record of 4.5 million LTI-free manhours.<br />

When SMOE held the Sailaway Ceremony for the Topside on July 30,<br />

2009, it was an event celebrated with pride and grandeur. This project for<br />

client Carigali-PTTEPI Operating Company set a new record for SMOE as<br />

it was the heaviest topside constructed by the yard and one of the world’s<br />

heaviest topsides ever jacked up, to a height of 7 metres.<br />

The delivered-on-schedule 30-month project entailed engineering,<br />

procurement, construction and loadout of the offshore structure. An<br />

additional component of the contract included offshore commissioning<br />

at the platform’s location in the JDA Block B-17 of the Malaysia-Thailand<br />

Joint Development Area; which is 286km east of Songkhla, Thailand and<br />

171 north of Kota Bahru, Malaysia.<br />

The fi eld’s joint ownership between Malaysia’s Petronas and Thailand’s PTT<br />

resulted in a ceremony attended by about 100 guests from both companies.<br />

Inaugurating the Topside’s completion are (L-R) Encik Abdul Latib Hassan,<br />

Senior Manager of Petronas Carigali JDA, Dr Kurujit Nakornthap, MTJA Board<br />

Member, Mr Ho Nee Sin, Managing Director of SMOE, Encik Alais Mohd,<br />

General Manager of CPOC and Khun Prisdapunt Ponjanapreecha, Regional VP<br />

of PTTEP.<br />

VIPs and guests at the ceremony.<br />

Also in the audience were representatives from Sembcorp Marine, SMOE’s<br />

clients and employees as well as various industry partners. In total, there<br />

were close to 400 people who witnessed the inauguration ceremony that<br />

marked the Topside’s completion. The celebration continued into the<br />

evening with a black-tie dinner held at The Fullerton Hotel to commemorate<br />

the project’s milestone success.<br />

All smiles from the VIP table during the black-tie dinner.<br />

Celebrating a fruitful partnership.<br />

10<br />

Jul - Aug 2009


SCM : AROUND THE YARDS<br />

Marking the milestone success.<br />

Setting a heaviest topside record for SMOE - The 18,000-metric-tonne Central<br />

Processing Platform is scheduled to commence operations in the Gulf of<br />

Thailand in October 2009.<br />

In his speech to the audience, Mr Ho Nee Sin, Managing Director of SMOE,<br />

commented, “This is a monumental project for SMOE as it is the heaviest<br />

topside that we have constructed in the whole of our 36 year history.<br />

Today, we commemorate the successful delivery of SMOE’s biggest as<br />

well as one of the region’s largest Central Processing Topside.”<br />

Dr. Kurujit Nakornthap, Director General in the Department of Mineral<br />

Fuels and Malaysia-Thailand Joint Authority (MTJA) Board Member,<br />

reiterated the good performance, “On behalf of the MTJA, I would like to<br />

congratulate SMOE, the fabricator of the Muda Production Platform, for a<br />

job well done; for you have worked with determination and co-operation in<br />

fi nishing this project so that we can be proud of the achievement today.”<br />

The Topside, which measures 78m in length, 72m in width and 27m in height,<br />

is scheduled to commence operations after hook-up and commissioning<br />

in the Gulf of Thailand in October 2009. It is designed with a maximum<br />

gas processing capacity of 657 million standard cubic feet of gas per day,<br />

as well as a condensate production rate of 17,676 barrels per day and<br />

produced water rate of 34,000 barrels per day injection.<br />

Project Milestones by PPL <strong>Shipyard</strong><br />

During the months of July and August 2009, PPL <strong>Shipyard</strong> and its partners<br />

celebrated key project milestones for two units of PPL Pacific 375 jack-up<br />

drilling rigs under its construction.<br />

West Leda after its successful launch.<br />

West Leda, a jack-up rig ordered by Seadrill<br />

Limited, was successfully launched in a<br />

ceremony held on July 24, in the presence<br />

of key yard and owner representatives. This<br />

was followed by the keel-laying ceremony<br />

of Sinopec International (Hong Kong) Co’s<br />

newbuild jack-up rig on August 7 in PPL<br />

<strong>Shipyard</strong>.<br />

Mr Chen Hui Zhong, Vice GM of Sinopec Shanghai<br />

Offshore Petroleum Exploration, sharing his<br />

thoughts about witnessing the rig’s keel-laying<br />

milestone.<br />

Key representatives from PPL <strong>Shipyard</strong> and Seadrill<br />

witnessing the successful rig launching.<br />

Stakeholders commemorating the successful keel-laying of Sinopec’s newbuild jack-up rig.<br />

Jul - Aug 2009<br />

11


HAPPENINGS<br />

Reinforcing Links with the Investment Community<br />

As part of its continuing efforts to engage and connect with the investment<br />

community, Sembcorp Marine welcomed a delegation of investment<br />

analysts and fund managers from Banc of America Securities-Merrill Lynch<br />

and Credit Agricole to subsidiary <strong>Jurong</strong> <strong>Shipyard</strong> on July 3, 2009.<br />

Highlights of the day included a presentation cum Q&A session as well as a yard tour, which<br />

provided the international group of visitors a deeper understanding of the Group’s business and<br />

operations.<br />

Sharing insights with the delegation of analysts<br />

and fund managers.<br />

Presentation in progress.<br />

Visitors learning more about Sembcorp Marine’s<br />

operations during the yard tour.<br />

Revisiting <strong>Jurong</strong> <strong>Shipyard</strong><br />

It was a heartwarming reunion as former staff from Ishikawajima-<br />

Harima Heavy Industries Co. <strong>Ltd</strong> (IHI) who had played an active role<br />

in <strong>Jurong</strong> <strong>Shipyard</strong>’s early development paid a special visit to the<br />

yard on August 7, 2009.<br />

The group had a fruitful time catching up with long-time friends and former colleagues<br />

during the visit. They also toured the yard’s key facilities and were impressed by the<br />

vast progress and signifi cant growth made by <strong>Jurong</strong> <strong>Shipyard</strong> over the years.<br />

A testimony of the close ties between <strong>Jurong</strong> <strong>Shipyard</strong> and IHI, this meaningful<br />

gathering served to further consolidate the strong links between the two<br />

organisations.<br />

Extending a warm welcome.<br />

A heartwarming reunion.<br />

Stopping for a closer look during the yard tour.<br />

12<br />

Jul - Aug 2009


Winning National Honours for WSH<br />

Sembcorp Marine’s subsidiary yards swept nine<br />

awards at this year’s Workplace Safety and Health<br />

(WSH) Awards on July 24, 2009 for their continuous<br />

commitment and exemplary standards in WSH.<br />

HAPPENINGS<br />

Awards & Accolades<br />

WSH PERFORMANCE AWARDS (WSHPA)<br />

Organised by the WSH Council and supported by the Ministry of<br />

Manpower, the WSH Awards was held to celebrate the best in WSH and<br />

to recognise deserving winners on a national level. The ceremony, held<br />

at Shangri-La Hotel, was graced by Guest-of-Honour, Mr Gan Kim Yong,<br />

Minister for Manpower.<br />

SMOE was honoured with a Silver WSH Performance Award which<br />

recognizes companies or organizations that have performed well in<br />

safety and health through the implementation of sound safety and health<br />

management systems.<br />

A total of seven awards were won by the Group in the Safety and Health<br />

Award Recognition for Projects (SHARP) category, which honours<br />

projects that have achieved good WSH results, These included three<br />

awards bagged by <strong>Jurong</strong> <strong>Shipyard</strong> for Joides Resolution, PetroRig II<br />

and M.T. Arc, two awards by Sembawang <strong>Shipyard</strong> for FPSO Aoka Mizu<br />

and ARV 1, and two awards by SMOE for FPSO Hai Yang Shi You 117<br />

and MUDA CPP Platform.<br />

Project Supervisor Mr Salleh Bin Kasban from <strong>Jurong</strong> <strong>Shipyard</strong><br />

was among 10 outstanding individuals who won the WSH Award for<br />

Supervisors. The award recognizes exemplary performance and valuable<br />

contribution towards WSH excellence.<br />

SMOE: Silver Award.<br />

WSH AWARD FOR SUPERVISORS<br />

Mr Salleh Bin Kasban (<strong>Jurong</strong> <strong>Shipyard</strong>).<br />

SAFETY AND HEALTH AWARD RECOGNITION FOR PROJECTS (SHARP)<br />

<strong>Jurong</strong> <strong>Shipyard</strong> - Joides Resolution; PetroRig II; M.T. Arc.<br />

SMOE - FPSO Hai Yang Shi You 117.<br />

Sembawang <strong>Shipyard</strong> - FPSO Aoka Mizu; ARV 1.<br />

SMOE - MUDA CPP Platform.<br />

Jul - Aug 2009<br />

13


HAPPENINGS<br />

Best of WSH in Marine Industry<br />

Sembcorp Marine’s yards proved to be a mighty force when they bagged five of eight awards during<br />

the 12th Workplace Safety and Health (WSH) Innovations in Marine Industry Convention organised by<br />

the Association of Singapore Marine Industries (ASMI) on August 27, 2009.<br />

Gold Award<br />

Three teams from Sembcorp Marine – LIFE from <strong>Jurong</strong> <strong>Shipyard</strong>, Hull Team<br />

B from Sembawang <strong>Shipyard</strong>, and RIG-2 from PPL <strong>Shipyard</strong> – successfully<br />

snagged all three gold awards with their outstanding WSH innovations.<br />

<strong>Jurong</strong> <strong>Shipyard</strong>’s LIFE team developed the Super Trolley innovation to<br />

provide a more effi cient and effective alternative for the moving of large and<br />

heavy cable drums to replace the conventional methods of transporting the<br />

drums manually or by cranes.<br />

<strong>Jurong</strong> <strong>Shipyard</strong>’s LIFE Team [Super Trolley].<br />

Hull Team B from Sembawang <strong>Shipyard</strong> created the High Defi nition Lifeboat<br />

/ Rescue Boat Cradle, a gadget that automatically locks onto the hull of the<br />

boats so it is kept in place when in contact. This reduces workers’ exposure<br />

to potential hazards such as pinch points or boats toppling as they are not<br />

required to adjust the position of the lifeboats / rescue boats that are being<br />

lowered from the vessels and onto the cradle.<br />

PPL <strong>Shipyard</strong>’s RIG-2 team designed the Claminator, a contraption which<br />

provides a clamping effect for the fabrication, joining and straightening<br />

of the various sections of the legs of jack-up rigs. The device effectively<br />

eliminates fi re hazards such as welding and grinding processes that are<br />

traditionally associated with the process.<br />

Sembawang <strong>Shipyard</strong>’s Hull Team B [High Definition Lifeboat / Rescue Boat<br />

Cradle].<br />

Other winning teams from Sembcorp Marine included HP 3 from <strong>Jurong</strong><br />

<strong>Shipyard</strong> and Team Rocket from Sembawang <strong>Shipyard</strong> which won the Silver<br />

and Bronze awards respectively for their innovative innovations.<br />

The Guardrail Locking Device was conceived by HP 3 to effectively secure<br />

guardrails around manholes and access openings to prevent falling hazards,<br />

while eliminating the need for hot work for the erection of railings.<br />

The Coupling Extractor developed by Team Rocket enables the effective<br />

and effi cient removal of couplings from motor shafts and pumps without the<br />

use of hot work.<br />

PPL <strong>Shipyard</strong>’s RIG-2 Team [Claminator].<br />

Silver Award<br />

Beyond improving productivity standards and operational effi ciency, these<br />

innovations further boost the yards’ WSH standards, leading to higher<br />

morale and better performance among employees.<br />

Bronze Award<br />

<strong>Jurong</strong> <strong>Shipyard</strong>’s HP 3 Team [Guardrail Locking Device]<br />

Sembawang <strong>Shipyard</strong>’s Team Rocket [Coupling Extractor (Induction Heater)].<br />

14<br />

Jul - Aug 2009


WSH Carnival 2009<br />

HAPPENINGS<br />

Instilling a sense of shared responsibility towards safety at the workplace among employees and stakeholder<br />

partners – that was the objective behind the three-day Workplace Safety and Health (WSH) Carnival 2009 held<br />

from July 8 to 10 at Sembawang <strong>Shipyard</strong>, a subsidiary of Sembcorp Marine.<br />

Launching of the WSH Carnival by Mr Ho Siong Hin, Commissioner for Workplace<br />

Safety and Health, Ministry of Manpower, and Mr Ong Poh Kwee, Sembawang<br />

<strong>Shipyard</strong>’s Managing Director.<br />

Mr Ho Siong Hin participating in an interactive activity at the exhibition.<br />

The WSH Carnival was offi cially kicked off by Mr Ho Siong Hin, Commissioner for Workplace Safety and Health, Ministry of Manpower, who<br />

unveiled the ‘Safety Starts With Me’ plaque together with Mr Ong Poh Kwee, Managing Director of Sembawang <strong>Shipyard</strong>. The event was attended<br />

by representatives from Ministry of Manpower and Sembcorp Marine as well as employees from Sembawang <strong>Shipyard</strong> and SMOE.<br />

Mr Ho said that he was pleased to see the continued momentum by Sembcorp Marine and its subsidiary yards in raising safety awareness and the<br />

Group’s strong support of the national WSH Campaign.<br />

Employees and contractor partners were invited to participate in an interactive learning exhibition held as part of the carnival to understand more<br />

about the yard’s ProBE (Programme Based Engagement) priorities and the key HSE . objectives for 2009.<br />

Working together towards WSH excellence!<br />

Invited guests gracing the WSH Carnival 2009 at Sembawang <strong>Shipyard</strong><br />

Checking out the exhibits on display.<br />

Jul - Aug 2009<br />

15


HAPPENINGS<br />

Sembcorp Marine Bowling Tournament<br />

Winning Teams<br />

1 st : “The Bowlers” from <strong>Jurong</strong> <strong>Shipyard</strong>.<br />

Employees from Sembcorp Marine and its yards enjoying a time of interaction.<br />

Elite bowlers from Sembcorp Marine and its subsidiaries <strong>Jurong</strong><br />

<strong>Shipyard</strong>, Sembawang <strong>Shipyard</strong>, PPL <strong>Shipyard</strong>, SMOE and <strong>Jurong</strong><br />

<strong>Jurong</strong> SML came together at Starbowl Singapore @ Hometeam NS to<br />

pit their skills during the Group Bowling Tournament on August 22, 2009.<br />

2nd: “Discoverers” from <strong>Jurong</strong> SML.<br />

Launching off the tournament was Mr Ong Poh<br />

Kwee, Deputy President of Sembcorp Marine,<br />

who delivered the fi rst bowl to the hearty<br />

applause of everyone present. The competition<br />

was intense as determined players issued<br />

striking attacks to bowl the competition away.<br />

The verdict was reached after three exciting<br />

rounds, with “The Bowlers” from <strong>Jurong</strong><br />

<strong>Shipyard</strong> emerging champion, “Discoverers”<br />

from <strong>Jurong</strong> SML clinching second position<br />

and “Emerald” from PPL <strong>Shipyard</strong> securing<br />

third place.<br />

3rd: “Emerald” from PPL <strong>Shipyard</strong>.<br />

SAFRA Singapore Bay Run<br />

Even before the sun’s rays peeked through the horizon,<br />

over 50 employees from <strong>Jurong</strong> <strong>Shipyard</strong> gathered at<br />

the Padang, together with over 70,000 participants, for<br />

the SAFRA Singapore Bay Run on August 16, 2009.<br />

Based on their fi tness level, participants had the option of choosing either<br />

the 6km, 10km or 21km trail, all of which took them past part of the F1<br />

race route as well as scenic sights along the Benjamin Sheares Bridge and<br />

Marina Bay area.<br />

Mind over matter: We did it!<br />

Aside from the tangible health benefits from the hearty workout, the<br />

Singapore Bay Run also provided employees from various departments<br />

an opportunity to strengthen camaraderie and rapport with one<br />

another.<br />

Poised to Strike<br />

The atmosphere was tensed as players, with eyes affixed on their targets,<br />

poised themselves with cue sticks in hand for the decisive strike. That was<br />

the scenario during the 8-ball pool tournament organised by the <strong>Jurong</strong><br />

<strong>Shipyard</strong> Recreation Club on August 1, 2009<br />

Held at the West Coast Recreation Centre, the game saw 32 sharp-shooters from <strong>Jurong</strong> <strong>Shipyard</strong> trying<br />

to outdo one another with strategic shots executed with fi nesse and accuracy. Competition aside, the<br />

tournament provided players a chance to hone their shooting techniques, display their sportsmanship<br />

and further consolidate ties with fellow pool enthusiasts.<br />

Dolphin is a bi-monthly publication of Sembcorp Marine <strong>Ltd</strong> (Reg. No. 196300098Z)<br />

and its subsidiary <strong>Jurong</strong> <strong>Shipyard</strong> <strong>Pte</strong> <strong>Ltd</strong> (Reg. No. 199908265G). No part of this<br />

newsletter may be reproduced or transmitted by any means or stored in any<br />

16information storage and retrieval system without the publishers’ written permission.<br />

Jul - Aug 2009<br />

Holding the champion’s trophy is Mr Liew Ka Hoe<br />

(2 nd from right) from HP, together with first and<br />

second runners-up Mr Low Seow Pin (far left) and<br />

Mr Alan Chua (far right) from Finance, and third<br />

runner-up Mr Chng Teck Wee from Engineering.<br />

Contact us :<br />

The Editorial Team • 29 Tanjong Kling Road<br />

Singapore 628054 • ir@sembcorpmarine.com.sg<br />

For more information, visit us at : www.sembcorpmarine.com.sg • www.jspl.com.sg

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