COSCO Wins FPSO Conversion Contract

COSCO Shipyard Group has secured a contract from MODEC International LLC to carry out the hull and marine repair and conversion work (inclusive of fabrication of the piperacks, storage & maintenance module, and chemical injection & laydown module) of an oil carrier to a FPSO (Floating, production, storage and offloading unit) capable of handling 1.6 million bbl. The contract is valued at US $35 million (S$54 million). Work to be carried out at the Group's Dalian Shipyard will commence in April 2007.

Separately, Mr. Ji Hai Sheng, Vice Chairman and President of the Company and Vice Chairman of COSCO Shipyard Group said, "This contract is further testimony that Cosco has successfully penetrated the highly specialized and sophisticated FPSO offshore conversion and modification market. As we make further progress in building up a strong order book, we continuously upgrade our shipyard facilities to meet rising demand and world-class customer expectations. In this regard, we are pleased to have commissioned a new Panamax size dry dock (280m x 40m) facility at our COSCO Zhoushan Shipyard, in line with our expansion plan, bringing CGS capacity up by 6% from 1.35 million dwt to 1.43 million dwt. The dry dock accommodated its first vessel "M/V Equinox Voyager" on March 19, 2007."

Construction of the second VLCC size dry dock is progressing as planned and scheduled to be completed by the end of May 2007.

Listed on the main board of the Singapore Exchange, COSCO Corporation is a diversified group with core activities in shipping and shipping related services. The Group owns bulk carriers and majority stake in the largest shipyard group in China, operates shipping agencies as well as provides marine engineering and ship repair services. COSCO Corporation is the listed subsidiary of China Ocean Shipping (Group) Company, the largest shipping group in China.