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Marine Log

October 12, 2007

$108 million OSV order for Malaysia's Coastal Contracts

Malaysia's Coastal Contracts says that its wholly-owned subsidiary, Thaumas Marine Ltd, has won orders worth $108 million to build four offshore support vessels to Kreuz Engineering Ltd.

Kreuz is a unit of Singapore's Swiber Holdings which says that the four vessels consist of two subsea support vessels and two deepwater Anchor Handling Tug/Supply ("AHTS") vessels.

The $108 million does not include equipment that Swiber will retrofit and/or purchase for the vessels.

The two 78 m DP2 Subsea Support vessels and the two deepwater 70 m 10,000 BHP (brake horsepower) AHTS vessels are expected to be delivered between last quarter of 2009 and first quarter of 2010.

The Subsea Support vessels will be outfitted with the state-of-the-art SAT system incorporating an advanced self propelled hyperbaric rescue chamber and 100-ton heave compensated crane. The vessels will also have a Class 2 Dynamic positioning system, accommodations for 146 personnel and a working moonpool. These Subsea Support vessels will complement Swiber's existing EPCIC activities to perform subsea hardware installation and inspection, repair, and maintenance.

The two deepwater 70 m 10,000 BHP AHTS vessels will be the first deepwater vessels Swiber has acquired. When delivered, the deepwater vessels will be available to international oil and gas companies for their deep-sea operations.

"The acquisition of the Subsea Support vessels and deepwater AHTS vessels is a significant first step towards extending our capabilities to subsea and deep water activities. Our expanded fleet will serve to sharpen our competitive edge and enhance our position as a leading, niche service provider to the offshore Oil and Gas sector. The scale-up of our capabilities and capacities to take on more offshore oil and gas projects will serve to broaden our revenue streams. We expect revenue synergies and growth potential from these acquisitions," said Mr Raymond Goh, Executive Chairman and Chief Executive of Swiber.