Swiber Acquires AmClyde-M-80 Offshore Crane

Swiber Engineering Limited has entered into a contract with Hydralift AmClyde Inc., a unit of National Oilwell Varco, to acquire a 4,180 tons M-80 offshore derrick crane for US$53.13 million.

The derrick crane, which is capable of lifting a maximum load of up to 4,180 tons, will be one of the largest heavy lift cranes in the Asia Pacific region.

The consideration for the contract will be financed through the proceeds raised from the Group’s recent bond offering in August 20071. Payments will be made according to the work in progress schedule as specified in the contract.

"We are very pleased with the opportunity to work with AmClyde. AmClyde has a long-standing reputation as the world's premier designer and builder of large specialty equipment for lifting heaviest loads for offshore construction activities. The AmClyde team has the proven design, experienced craftsmen and a history of delivering cranes that are tailored to meet the requirements of each customer," said Mr. Raymond Goh, Executive Chairman and Chief Executive Officer of Swiber.

Mr. Bruce Copp, representative of AmClyde, who is visiting Swiber’s headquarters in Singapore for the signing ceremony, had this to add, "We are honored to have been selected as the crane supplier for Swiber, and await a successful cooperation with them in this project. We are very impressed with the Swiber organization, and look forward to building a long-term relationship with them."

Under the contract, the expected delivery of the derrick crane is scheduled for the third quarter of financial year 2009.

When delivered, the derrick crane will be installed onto a yet-to-be-constructed barge designed by the Swiber team. The new crane and barge underscores Swiber’s commitment to expand its fleet of construction vessels with new cutting edge designs and technologies to enhance its offshore marine support and EPCIC capabilities.

"We are truly excited about this project," says Mr. Goh. "Our internal design team is busy at work to design a specialized barge. Fitted with the new derrick crane, the barge will be suitable for heavy lifting offshore operations. This project will provide us the opportunity to demonstrate our capabilities in the conversion and construction of specialized vessels with advanced designs and innovations."