Neptune Explorer Remaining Upgrades to be Carried Out at Sembawang Shipyard

Neptune Marine Oil & Gas Limited has awarded the contract for the remaining upgrading and reactivation project of drillship Neptune Explorer to Sembawang Shipyard Pte Ltd in Singapore. This contract represents Phase II of upgrading and reactivation works. The Drillship will enter Sembawang Shipyard by end October 2006 and will complete by April 2007.

The selection of Sembawang Shipyard to carry out this project is based on the shipyard's track record in meeting schedule deadlines and quality and safety commitments. There will be a cost impact from carrying out the work in Singapore. However, the risk will be mitigated as the location has a large critical mass of skills and infrastructure allowing all activities to be executed in the same yard and location.

Sembawang Shipyard Pte Ltd is a wholly-owned shipyard of SembCorp Marine, the marine engineering arm of SembCorp Industries Ltd. Sembawang Shipyard has one of the single largest integrated ship repair facilities in Southeast Asia and a proven record in excellence in ship repairs and commitment to meeting timely deliveries, innovative solutions, quality, and strict Health Safety and Environment standard.

Phase I of Neptune Explorer's reactivation was carried out in Pan-United Marine Limited's Pan-United Yard in Batam, Indonesia.

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