Sembcorp Marine has made reference to the article "PetroRig sues Sembcorp Marine over rig contract" by Reuters on May 18, 2009 referring to an action purportedly commenced in the United States by PetroRig I Pte Ltd against our wholly-owned subsidiary Jurong Shipyard Pte Ltd over the termination of the construction contract for PetroRig I.
Sembcorp Marine is not aware of such an action. Jurong Shipyard Pte Ltd has not received any official notice of such US proceedings. If there is any such action, Jurong Shipyard will defend it vigorously as Jurong Shipyard believes that it has acted properly under the terms of the construction contract.
We are surprised that PetroRig I Pte Ltd, a Singapore incorporated company, should go to the US courts to commence such proceedings when the contract is governed by English laws and any dispute is to be resolved in Singapore by arbitration under UNCITRAL arbitration rules.
As of today, Jurong Shipyard is not aware of any injunction of any kind restraining it from proceeding with the sale. The sale of PetroRig I will proceed as advertised with bids closing at noon on May 20, 2009.
Based on best known information, Jurong Shipyard is confident that it will be able to sell the rig and to recover all outstanding amounts owed to the shipyard. The event will not have any material impact on Sembcorp Marine.
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