Tuesday 8 June 2021

Sembcorp Marine Ltd (the “Company”) wishes to announce that Jurong Shipyard Pte Ltd (“JSPL”), a wholly owned subsidiary of the Company, has entered into Amendment Agreements with Transocean Offshore Deepwater Holdings Limited (“Transocean”) to revise the delivery dates of two ultra-deepwater drillships it has contracted to build for Transocean.

Under the Amendment Agreements which took into due consideration work disruptions arising from the COVID-19 pandemic, the delivery dates of the two vessels have been rescheduled to December 2021 for the first vessel, Deepwater Atlas, and May 2022 for the second vessel, Deepwater Titan.

The Amendment Agreements further provide that upon the respective delivery of the vessels, Transocean will make a partial delivery payment, followed by deferred delivery instalment payments of the balance amounts payable under the contracts. To date, Transocean has already paid 35% and 30% of the contract price for Deepwater Atlas and Deepwater Titan respectively.

Deepwater Atlas: Under the first Amendment Agreement, Transocean will make a US$50 million payment to JSPL upon delivery, with the remaining sum of approximately US$370 million payable in quarterly instalments with accrued interest within five years from the delivery date. All amounts outstanding are secured by a mortgage over the vessel and parent company guarantee issued by Transocean Inc. Deepwater Atlas is expected to commence drilling operations on the Shenandoah project in the U.S. Gulf of Mexico with BOE Exploration & Production LLC in the second half of 2022.

Deepwater Titan: Under the second Amendment Agreement, Transocean will pay JSPL 80% of the amount payable upon delivery or approximately US$350 million, and the remaining 20% or approximately US$90 million will be payable in quarterly instalments with accrued interest within five years from the delivery date. All amounts outstanding are secured by a parent company guarantee provided by Transocean Inc. Deepwater Titan is expected to commence drilling operations with Chevron U.S.A Inc. in the first quarter of 2023.