Sembcorp Marine Ltd wishes to announce that its wholly-owned subsidiary, PPL Shipyard Pte Ltd (PPL Shipyard), has terminated three contracts with Integradora de Servicios Petroleros Oro Negro, S.A.P.I. de C.V. and its subsidiary Oro Negro Vastus Pte. Ltd. (collectively “Oro Negro”), for the construction of three jack-up rigs. The jack-up rigs have been technically accepted by Oro Negro but delivery of the rigs has been deferred.
The termination is made pursuant to the terms of the deferment agreements between PPL Shipyard and Oro Negro. The transaction is not expected to have any material impact on the net tangible assets and earnings per share of the Company for the year ending December 31, 2017.