Jurong Shipyard Files Claims for US$198.9 million

Sembcorp Marine wishes to announce that its subsidiary, Jurong Shipyard Pte Ltd (“JSPL”) has on 3rd August 2009 commenced an action in the High Court of Singapore against Societe General (“SG”) to recover a sum of US$198.9 million. The breakdown of the claims is as follows:
(1) the sum of US$83.5 million that was paid to SG before the unauthorised foreign exchange transactions (“Unauthorised Transactions”) were uncovered in October 2007, and
(2) US$115.4 million that was paid to SG as part of a pre-condition for closing out of Unauthorised Transactions with JSPL in November 2007, subject to JSPL’s right to a refund of the monies from SG if the dispute is resolved in JSPL’s favour.
JSPL remains of the view that the Unauthorised Transactions were not valid and binding on JSPL, and is pursuing its right to claim for a refund of the monies from SG.
Secures FPSO Conversion Contract From MODEC
Jurong Shipyard Pte Ltd., also secured an approximately S$160 million contract to convert the Very Large Crude Carrier (VLCC) tanker, the Ohdoh (ex Tohdoh), to a Floating Production Storage and Offloading (FPSO) vessel (to be renamed “FPSO Kwame Nkrumah MV21”) for MODEC Offshore Production Systems (Singapore) Pte Ltd.
The conversion contract involves the conversion of the oil tanker to an FPSO that includes detailed engineering, installation and integration of 18 topside modules, installation of external turret and power generation, accommodation upgrading as well as extensive piping and electrical cabling works.
The “FPSO Kwame Nkrumah MV21”, which is part of the Tullow Ghana Ltd Phase 1 development plan and is due for delivery in 1Q 2010, will be installed in approximately 1,100 meters water depth on the Jubilee Field offshore Ghana, one of the largest oil fields discovered offshore West Africa in the past 10 years. The “FPSO Kwame Nkrumah MV21” will be capable of processing more than 120,000 barrels of oil per day, injecting more than 230,000 barrels of water per day, 160 MMscfd of production gas and with a storage capacity of 1,600,000 barrels of oil and is designed to remain on the field for up to 20 years without dry docking.
Sembcorp Marine expects positive contributions to its earnings from the conversion contract for the year ending December 31, 2009.