SMOE Bags APLNG Contract (Australia)

Sembcorp Marine’s wholly-owned subsidiary SMOE has been awarded a contract valued at approximately US$100 million and may potentially increase to be in excess of approximately US$150 million for the module assembly for Australia Pacific LNG’s liquefied natural gas facility on Curtis Island, Queensland, Australia.

The contract, awarded by Bechtel Overseas, entails the assembly of process and cryogenic pipe-rack modules for the LNG facility. Bechtel and SMOE will form an integrated management team to manage the module assembly program for the Australia Pacific LNG facility, scheduled to be completed in three years.

Mr Ho Nee Sin, Managing Director of SMOE said “This project will be executed in our Indonesian Batam Yard, located within the Kabil Industrial Estate with capacity for lay down, warehousing, quarantine, assembly, workshops and yard facilities as well as dedicated jetty for load out of the completed modules. During the peak period, it is estimated that a workforce of about 3,000, comprising direct and indirect will be engaged.”

In addition, this contract will add on to our business line of SMOE, capitalizing on our Batam yard facilities and capabilities in serving the growing LNG industry especially in Australia and the region.”

SMOE, with its reputed leading turnkey contractor status in the oil and gas industry and track record of more than 30 years, provides its worldwide clientele with engineering and construction services for offshore fixed and floating facilities, specialized modules and modularization of onshore LNG plants.

The contract is not expected to have any material impact on the earnings per share and net tangible assets of Sembcorp Marine for the year ending December 31, 2011.

Source: Sembcorp Marine, October 18, 2011

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