Jurong Shipyard's Brazillian Joint Venture Secures First Contract Of S$270 Million

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June 18, 2001

SembCorp Marine Ltd announces that Mauà Jurong S.A, the Brazilian joint-venture shipyard of Jurong Shipyard Pte Ltd (JSPL), has secured its first major contract of S$270 million for the fabrication of topside production modules for the Barracuda and Caratinga fields, offshore Brazil. The contract also includes the integration of the Barracuda topside production modules with its newly-converted hull.

The S$270 million contract was awarded by Halliburton Productos Ltda, the Brazilian affiliate of Kellogg Brown & Root Inc. of USA to Mauá Jurong for the fabrication of topside production modules for two FPSOs (Floating Production Storage Offloading), Barracuda (P43) and Caratinga (P-48). Fabrication work on the topside production modules will commence in mid-June 2001 and is scheduled for completion in late 2002.

This contract is adjunct to the Barracuda P-43 FPSO conversion project that was recently awarded to JSPL by Kellogg Brown & Root. The P-43 FPSO conversion project is presently under execution in JSPL and when completed in the second quarter of 2002, the converted vessel will be towed to the Mauá Jurong yard in Brazil where the topside production modules' integration and commissioning works will commence. Integration and commissioning works on the P-43 is scheduled for completion in first quarter 2003.

Said Mr Heng Chiang Gnee, Deputy President of SembCorp Marine: "The opening of Mauá Jurong marks an important milestone in the revival of the marine and offshore industry in Brazil. Securing these projects will mean the creation of a minimum of 1,500 direct jobs and together with the number of indirect jobs, these projects will provide employment for 6,000 people locally."

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