Sembcorp Marine Ltd is pleased to announce that its wholly-owned subsidiary, Sembcorp Marine Rigs & Floaters Pte. Ltd., has secured a US$490 million contract from Statoil Petroleum AS (“Statoil”) on the turnkey Engineering, Procurement and Construction of Hull and Living Quarters for a newbuild floating production, storage and offloading vessel (FPSO).

This contract follows the signing of a Letter of Intent between the two parties, announced on November 10, 2017.

To be deployed at the Johan Castberg field development in the Barents Sea, about 240km from Hammerfest, Norway, the FPSO will have a hull approximately 55m wide and 295m long. It will be self-contained for harsh-environment operation, with living quarters accommodating up to 140 personnel.

The project is scheduled for completion in the first quarter of 2020.

The contract is not expected to have any material impact on the net tangible assets and earnings per share of the Group for the year ending December 31, 2017.

About Sembcorp Marine

Sembcorp Marine provides innovative engineering solutions to the global offshore, marine and energy industries. Drawing upon more than 50 years of track record and an extensive network of facilities and expertise, the Group focuses on four key capabilities, namely, Rigs & Floaters; Repairs & Upgrades; Offshore Platforms and Specialised Shipbuilding.

Sembcorp Marine operates shipyards strategically located in Singapore, Indonesia, the United Kingdom and Brazil. Its customers include major oil companies, drilling contractors, shipping companies as well as owners and operators of floating production units.

About Statoil

Statoil ASA (OSE: STL, NYSE: STO) is an international energy company with operations in more than 30 countries, present in several of the most important oil and gas provinces in the world. Building on more than 45 years of experience from oil and gas production on the Norwegian continental shelf, we are committed to accommodating the world's energy needs in a responsible manner, applying technology and creating innovative business solutions.

Statoil is among the world's largest net sellers of crude oil and condensate, the second-largest supplier of natural gas to the European market, and we also have substantial processing and refining operations. Statoil’s equity oil and gas production is around 2 million barrels oil equivalent per day. Statoil has contracted a fleet of around 90 ship for transportation of oil and LNG.

Statoil is headquartered in Norway with 21,000 employees worldwide, and is listed on the New York and Oslo stock exchanges.