2 DOLPHIN CONTENTS NEWS UPDATES PROJECT HIGHLIGHTS. National Day Observance Ceremony Q & 1H 2018 Financial Results

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2 CONTENTS DOLPHIN is published quarterly by Sembcorp Marine Corporate Communications. NEWS UPDATES Sembcorp Marine Ltd 29 Tanjong Kling Road, Singapore Tel: (65) Registration no Z EDITORIAL Editorial Advisor David Wong National Day Observance Ceremony Q & 1H 2018 Financial Results Corporate building Topping-Up Ceremony Sembcorp Marine wins Shell Vito FPU contract LMG Marin scores first polar expedition cruise ship design contract Sembcorp Marine acquires Sevan Marine s intellectual property rights Customer reception in Tokyo Posidonia 2018 Editorial Committee Shirley Yan Sheila Kumari WSH Awards 2018 Putting the best foot forward in WSH Innovation Wang Huiping Derrick Low June Chua 12 Sembcorp Marine supports ITE engineering students with new Financial Assistance Grant Contributors Ron Chia Suhaimi Bin Yusof Francisca Selidonha Kenneth Tan Monique Moro Machado PROJECT HIGHLIGHTS Sembcorp Marine completes integrated fixed platform topsides for Culzean gas field Vito Floating Production Unit strike steel ceremony Johan Castberg Hull & Living Quarters strike steel ceremony CONTACT US We want to hear from you. If you have any comments about the articles in this issue, ideas for future issues, or requests related to DOLPHIN mailing list, please send them to corp.comms@sembmarine.com. DOLPHIN newsletter is printed on FSC-certified, eco-friendly paper. No part of this newsletter may be reproduced or transmitted by any means or stored in any information storage or retrieval system without Sembcorp Marine s written permission. On the cover - Artist's impression of Shell Vito Floating Production Unit (FPU) 2 DOLPHIN

3 AROUND THE YARDS & OFFICES 16 Innovation Carnival 2018: Innovation through Limitless Imagination Dear reader, With oil prices stabilising at above US$70 a barrel and E&P capex spend rising steadily, the global oil and gas business is opening up new opportunities for Sembcorp Marine. However, as the market remains oversupplied, the Group s offshore rig orders will take more time to recover African journalists visit Tuas Boulevard Yard Good housekeeping starts with us Getting to know P.T.SMOE Indonesia EJA launches Integrated Workshop Facilities EJA evacuation simulation a success Sembcorp Marine hosts Ministry of Education delegates Nurturing the next generation of Engineers This latest issue of Dolphin reports that in 1H2018, Sembcorp Marine secured $730 million in new contracts, with half-year group revenue at $2.81 billion (see page 5). The Group remains active in pursuing the conversion of enquiries into new orders, executing orders efficiently and positioning its business for the industry recovery. On page 6, read about Sembcorp Marine s new contract with Shell Offshore Inc. for the construction and integration of the Vito Floating Production Unit s hull, topsides and living quarters. Sembcorp Marine has scored 15 wins in the WSH Awards 2018, including an Innovation Award for JE Dynamite s Sat Align Tack (SAT) Workstation. See page 10 for details. STAFF SPOTLIGHT 24 ASMI Seven-a-side Soccer Tournament ASMI Bowling Tournament 2018 Also learn more about P.T. SMOE, a Sembcorp Marine facility located in Batam, Indonesia, through an interview article with its President-Director, Mr Ron Chia (page 18). And last but not least, catch up on Sembcorp Marine s latest activities in support of education, sports, health, nation-building, environmental causes and the arts Annual roadshow creates awareness on fraud and theft crimes Ecological tour of the Aricanga Mountain Charity campaign for elderly in Aracruz Apprentice Graduation Ceremony Workplace Safety & Health Pop Quiz Sembcorp Marine. Integrated Synergies, Global Possibilities. AUG

4 NEWS UPDATES NATIONAL DAY OBSERVANCE CEREMONY 2018 Guest-of-honour Dr Koh Poh Koon, Deputy Secretary-General, NTUC and Senior Minister of State, Ministry of Trade & Industry addressing the attendees at NDOC 2018 Sembcorp Marine senior management and SMEEU representatives welcoming Dr Koh Poh Koon at NDOC 2018 On Aug 16, Sembcorp Marine held a National Day Observance Ceremony at Tanjong Kling Yard to commemorate Singapore s 53 years of independence. Dr Koh Poh Koon, Deputy Secretary- General of NTUC and Senior Minister of State for Trade and Industry, was the event s guest-of-honour. In his speech, he remarked that the offshore and marine industry had successfully weathered challenging times in recent years, supported by a culture of unity and cooperation among management and workers. The strong labour-management relationship between Sembcorp Marine and the Shipbuilding and Marine Engineering Employees Union (SMEEU) was one of the key factors in ensuring the continued success of the company. In fact, it was the trust and confidence from solid relations between management, workers and unions that saw the industry through many difficult periods, Dr Koh said. and implement training programmes, as well as to operationalise the Marine and Offshore Engineering Industry Transformation Map. Speaking in the same vein at the National Day Observance Ceremony, Sembcorp Marine President & CEO Mr Wong Weng Sun said that in order to stay competitive and relevant, the Group must constantly adapt, innovate and aspire to do better. While we have certainly come far, experience has taught us the necessity of continuously improving ourselves as we journey through economic cycles, learning curves, disruptions and opportunities, he said. Mr Wong also reminded Sembcorp Marine employees to constantly improve on their workplace safety and health performance. He lauded the HSE team for winning the Safety Initiative Award at the Seatrade Maritime Awards Asia with the CARE safety programme, as well as 15 awards at the annual Workplace Safety and Health (WSH) Awards The theme of this year s National Day Parade was We are Singapore, pointing to our shared history, heritage, achievements and destiny. It reminds us that we have a lot in common to protect and preserve. May we all continue to work hard for the peace, prosperity and progress of our nation. Mr Wong Weng Sun Sembcorp Marine President & CEO As the offshore and marine industry emerges from the downturn and moves forward, its workers need to be re-skilled and upskilled so that they can be future-ready. In this regard, Dr Koh noted that the Employment and Employability Institute (e2i) and SMEEU are working closely with Sembcorp Marine, the Association of Singapore Marine Industries, Workforce Singapore and other sector agencies to develop Sembcorp Marine and SMEEU participants sang the National Anthem and recited the National Pledge in unison 04 DOLPHIN

5 NEWS UPDATES 2Q & 1H 2018 FINANCIAL RESULTS Sembcorp Marine posted group revenue of $2.81 billion for the six months ended June 30, 2018, with $730 million worth of new contracts boosting its net orderbook to $7.27 billion. The Group reported a net loss of $50 million, due to lower business activities following the completion of several projects; newly acquired projects at early execution stages; and a $27 million loss from the sale of the West Rigel semisubmersible rig. OUTLOOK Key highlights: (For the six months to June 30, 2018) Group revenue of $2.81 billion Net loss of $50 million, including $27 million loss recognised from sale of West Rigel $730 million in new contracts secured in 1H 2018 Net orderbook of $7.27 billion as at 1H 2018 CAPEX spend on global exploration and production (E&P) continues to improve, although offshore rig order recovery will take some time as the market remains oversupplied. There are, however, some pockets of initial demand for mid and deep water rigs. The majority of Sembcorp Marine s new orders have been for offshore production projects. This trend is expected to continue and the Group is responding to an encouraging pipeline of enquiries and tenders for innovative engineering solutions. Notwithstanding the intense competition in the repairs and upgrades segment, the Group is able to attract higher value work per vessel. This segment will be underpinned by regulations that require ballast water treatment systems and gas scrubbers to be installed over the next two to five years. Analysts and journalists at the Sembcorp Marine 2Q & 1H 2018 results briefing Overall business volume and activity for the Group is expected to remain low for the immediate quarters while the trend of negative operating profit will continue in the near term. The Group s cash resources remain sufficient and will continue to be prudently managed to align with the business volume and potential opportunities. We will actively pursue the conversion of as many enquiries into new orders as possible, execute orders efficiently and position the Group well for the industry recovery. Mr Wong Weng Sun Sembcorp Marine President & CEO Sembcorp Marine President & CEO Mr Wong Weng Sun (second from left) responding to questions at the Sembcorp Marine 2Q & 1H 2018 results briefing AUG

6 NEWS UPDATES CORPORATE BUILDING TOPPING-UP CEREMONY After 13 months of construction, the main structural work of Sembcorp Marine s new corporate office building was completed. A Topping-Up Ceremony officiated by President & CEO Wong Weng Sun took place on June 21. The new corporate office building is part of Sembcorp Marine s long-term Transformation and Sustainable strategy plans. It is designed with facilities and amenities that promote a pleasant and conducive work environment for staff. The new building is expected to be completed in 1Q Sembcorp Marine senior management and contractor representatives at the topping-up ceremony SEMBCORP MARINE WINS SHELL VITO FPU CONTRACT Sembcorp Marine has secured a contract from Shell Offshore Inc. to construct and integrate the hull, topsides and living quarters of the Vito semi-submersible Floating Production Unit (FPU). This contract includes installation of Shell-furnished equipment. Supported by the Vito FPU s 4-column semi-submersible hull, the topsides weigh 9,200 tonnes and are designed to produce 100,000 barrels per day (bpd) of oil and 100 million standard cubic feet per day (MMSCFD) of gas. The Vito host will be located at a water depth of 1,234m in the Mississippi Canyon Block 984 in the Gulf of Mexico, 241km south of New Orleans, Louisiana, in the US. We are delighted that Shell has awarded the Vito FPU contract to us. We are fully committed to executing and delivering the project safely and efficiently. Mr William Gu Sembcorp Marine Senior Vice President and Head of Rigs & Floaters Artist's impression of Shell Vito FPU 06 DOLPHIN

7 NEWS UPDATES LMG MARIN SCORES FIRST POLAR EXPEDITION CRUISE SHIP DESIGN CONTRACT LMG Marin will design Quark Expeditions new polar expedition cruise ship LMG Marin has secured its first polar expedition cruise ship design contract, signed with Brodosplit Shipyard of Croatia. Scheduled for completion by the third quarter of 2020, the ship will be constructed for Quark Expeditions, a specialist in organising expeditions to the Arctic and Antarctic aboard purpose-built expedition vessels. LMG Marin will deliver a basic design package in the contract with Brodosplit Shipyard. At 128 metres in length, the polar expedition cruise ship has a capacity of 200 passengers and 116 crew members. It is tailored for operations in polar and distant regions, and will be built according to DNV-GL polar class PC(6) standard. The vessel will have an unrivalled level of safety and is fully compliant with Safe Return to Port requirements, in addition to a life boat capacity accommodating all persons on board. The cruise ship also features a top deck with infrastructure for two helicopters that will offer passengers a unique flight experience; cabins with large windows or private balconies; a comfortable spa and wellness area; and two restaurants. Passenger ships have always been an important market for us, LMG Marin Managing Director Mr Torbjørn Bringedal said. Throughout our 75 years of operation, we have designed more than 100 ferries, RoPax vessels and passenger vessels of various kinds, built at shipyards worldwide. The contract with Brodosplit for Quark Expeditions new polar expedition cruise ship marks an important breakthrough for LMG Marin in our focus on larger RoPax and passenger vessels. The polar expedition cruise ship will have infrastructure for two helicopters which will offer passengers a unique flight experience We are pleased that LMG Marin has won its first polar expedition cruise ship design contract. This major milestone reinforces the company s arctic ship design capabilities which, coupled with Sembcorp Marine s engineering expertise, will be critical to our future business opportunities and growth. We look forward to many more successes from LMG Marin. Mr Wong Weng Sun Sembcorp Marine President & CEO AUG

8 NEWS UPDATES SEMBCORP MARINE ACQUIRES SEVAN MARINE S INTELLECTUAL PROPERTY RIGHTS On June 8, Sembcorp Marine announced a US$39 million agreement with Norway s Sevan Marine for the following: Acquisition of the latter s interests and titles to all its intellectual properties; Acquisition of a 95% equity interest in HiLoad LNG AS, a Sevan Marine subsidiary which holds certain intellectual property rights; Takeover of all operating and associated costs, including unexpired leases, in maintaining Sevan Marine s three office locations; and Transfer of 26 Sevan Marine employees (subject to their acceptance). Listed on the Oslo Bourse, Sevan Marine specialises in the design, engineering and project execution of floating units for offshore applications. Their main product is a cylindrical platform used for floating production and drilling. Following the acquisition, HiLoad LNG AS will become a Sembcorp Marine subsidiary. With the proposed acquisitions, Sembcorp Marine will have a strengthened suite of intellectual properties and knowledge to execute leading-edge design and engineering solutions for the global offshore and marine sectors. The Group will also be in a better position to offer alternative solutions to customers and partners. FPSO Western Isles FPSO Goliat 08 DOLPHIN

9 NEWS UPDATES CUSTOMER RECEPTION IN TOKYO On May 10, Sembcorp Marine held a dinner reception in Tokyo for Japanese customers and business associates. Hosted by Sembcorp Marine Chairman Tan Sri Mohd Hassan Marican and President & CEO Wong Weng Sun, the dinner reception was a great opportunity for Sembcorp Marine representatives and invited guests to network and discuss prospective projects, business opportunities and market trends. Some 200 guests attended the event. Tan Sri Mohd Hassan Marican giving a welcome speech POSIDONIA 2018 Sembcorp Marine participated at Posidonia 2018, an international shipping exhibition in Athens, Greece, from June 4 to 8. Now into its 50th year, Posidonia drew some 22,000 visitors from over 90 countries. Joining over 2,000 exhibiting companies, Sembcorp Marine showcased its capabilities as a leading provider of energy, offshore and marine engineering solutions, attracting visitors to its booth with interesting displays, including its award-winning Ballast Water Management System. Sembcorp Marine representatives at Posidonia 2018 Visitors at the Sembcorp Marine Booth Sembcorp Marine took part in Posidonia 2018 under the Singapore Pavilion organised by the Association of Singapore Marine Industries. On the inaugural day of the exhibition, Senior Minister of State for Transport and Health Dr Lam Pin Min called on exhibitors at the Singapore Pavilion, including Sembcorp Marine. Visitors at the Sembcorp Marine Booth AUG

10 NEWS UPDATES Winners of WSH Awards 2018 WSH AWARDS 2018 On July 31, Sembcorp Marine garnered 15 awards at the Workplace Safety and Health (WSH) Awards 2018, including two Silvers in the WSH Performance category that were won by Pandan Yard and jointly by Tanjong Kling Yard and Tuas Boulevard Yard. The JE Dynamite team of Tuas Boulevard Yard also received the WSH Innovation Award for their Sat Align Tack (SAT) Workstation, which improves the safety and efficiency of pipe fitting operations; while Mr Selvaraj Karthikeyan from the same yard took home the WSH Supervisor Award for his outstanding performance. Eleven SHARP Awards brought Sembcorp Marine s total haul at this year s WSH Awards to 15 wins. Congratulations to the winners! Sembcorp Marine s achievements at the WSH Awards 2018 are as follows: Workplace Safety and Health Performance Award (WSHPA) WSH Innovation Award Sembcorp Marine Tanjong Kling Yard & Sembcorp Marine Tuas Boulevard Yard Sembcorp Marine Pandan Yard Silver Silver Sembcorp Marine Tuas Boulevard Yard JE Dynamite - SAT Workstation (SMCL Department) Workplace Safety and Health Award Recognition for Projects (SHARP) WSH Supervisor Award Sembcorp Marine Tuas Boulevard Yard Sembcorp Marine Tuas Boulevard Yard - Sleipnir - Sleipnir Land Fabrication - FPSO EWT Libra - FSO Ailsa - Floating Dry Dock - Q Sevilla Knutsen - JE3T - P-68 Mr Selvaraj Karthikeyan (SMCL Department) Sembcorp Marine Admiralty Yard - Gina Krog FSO Conversion - Kaombo (Block 32) Development Project - Kaombo Norte FPSO Conversion 10 DOLPHIN

11 NEWS UPDATES PUTTING THE BEST FOOT FORWARD IN WSH INNOVATION Sembcorp Marine has been organising the annual Workplace Safety & Health Innovation Convention for the past two decades. It is a competition to encourage employees to put forward their most innovative ideas for improving safety, increasing productivity and reducing cost. This year, the Convention was held on July 4 at the Tuas Boulevard Yard Learning Centre. Out of 23 entries, Team Awesome from the Structure Fabrication Department won the top prize for their Eye Pad Arrangement System (EPAS). This device allows for easy placement of overhead eye pads on structures to be overturned prior to fitting and welding. The judges were impressed with the system s portable platform, which eliminates manual handling of the weighty eye pads and reduces the risk of ergonomic, hand and finger injuries. Team FEU Two from the Facilities, Electrical and Utilities Department finished runners-up with their project, Mag Clamp, while Team Spot from the Electrical and Instrumentation Department came in third with their project, Smart Shield. Team Awesome s Eye Pad Arrangement System (EPAS) came up tops at this year s Workplace Safety & Health Innovation Convention Team Awesome, the champion of Sembcorp Marine s 22nd Workplace Safety & Health Innovation Convention AUG

12 NEWS UPDATES SEMBCORP MARINE SUPPORTS ITE ENGINEERING STUDENTS WITH NEW FINANCIAL ASSISTANCE GRANT On June 1, 2018, Sembcorp Marine and ITE signed the Terms of Agreement for a new Financial Assistance Grant, which provides needy ITE engineering students with monthly allowances of $600. Sembcorp Marine is investing $576,000 in the programme sponsorship, to be disbursed over two years. Forty students are expected to benefit from the programme this year. Recipients of the Financial Assistance Grant face difficult family circumstances and financial challenges, forcing them to take up part-time work to support themselves and their families while managing the demands of their studies at ITE. With this in mind, the $600 monthly allowance each beneficiary receives will not only ease their financial burden but free up their time so that they can work less and focus more on their studies. Sembcorp Marine Chief Human Resource Officer Mr Chua San Lye explains Sembcorp Marine s sponsorship of the Financial Assistance Grant: Sembcorp Marine and ITE have a longstanding and very fruitful relationship, and we are constantly seeking ways to deepen our collaboration. By giving the student-beneficiaries a monthly allowance through the Financial Assistance Grant, we hope they can now concentrate better on their studies. We want to help them optimise the experience and outcomes of their courses and graduate successfully with the skills and knowledge to be the best they can be. Representatives of Sembcorp Marine and the Institute of Technical Education Signing of Terms of Agreement between Sembcorp Marine and the Institute of Technical Education? Did You Know The needs and well-being of the community are at the heart of Sembcorp Marine s CSR priorities. Particularly in regard to youths, who are the future leaders of Singapore, the Group supports them through bursaries, book grants, scholarships and other financial aid. Besides education, Sembcorp Marine contributes to the promotion of sports, health, nation-building, environmental causes and the arts. 12 DOLPHIN

13 PROJECT HIGHLIGHTS SEMBCORP MARINE COMPLETES INTEGRATED FIXED PLATFORM TOPSIDES FOR CULZEAN GAS FIELD Sembcorp Marine in May 2018 successfully delivered three fixed platform topsides to French oil supermajor TOTAL for the High Pressure-High Temperature (HPHT) Culzean gas field in the UK North Sea. Comprising Well Head, Utilities & Living Quarters as well as Central Processing Facility, the approximately 30,000-tonne integrated topsides will handle up to 500 million standard cubic feet per day (MMSCFD) of gas and 25,000 barrels per day (bpd) of condensate. Utilities & Living Quarters Fixed Platform Topside The topsides comply fully with UK safety regulations for harshenvironment operations in the Culzean field, which TOTAL operates and co-owns with joint-venture partners BP and JX Nippon. In addition to the topsides, a power generation module and two interconnecting bridges, which form part of the integrated topsides, were separately completed at Sembcorp Marine subsidiary Sembmarine SLP in Lowestoft, UK, for delivery in June. The fixed platform topsides join Floating Storage and Offloading vessel Ailsa and high-specification jack-up rig Maersk Highlander in a comprehensive suite of Sembcorp Marine engineering solutions for the Culzean field. Well Head Fixed Platform Topside The Culzean fixed platform topsides showcase our ability to deliver safe and reliable engineering solutions for HPHT field operating conditions. I am proud of the Sembcorp Marine team for stepping up to the plate as we take on more challenging and sophisticated offshore projects. Most of all, I sincerely thank TOTAL for the opportunities to contribute to the Culzean field development. Mr Wong Weng Sun Sembcorp Marine President & CEO Central Processing Facility Fixed Platform Topside We are delighted to be here to celebrate the completion of the topsides which have been delivered by Sembcorp Marine and their partners on time, on budget and safely. We still have much to achieve between now and first gas in 2019, but the work carried out to date has set us up well for the remainder of this significant project. Mr Jean-luc Guiziou TOTAL E&P UK Managing Director AUG

14 PROJECT HIGHLIGHTS VITO FLOATING PRODUCTION UNIT STRIKE STEEL CEREMONY The strike steel ceremony for the Vito Floating Production Unit (FPU) took place on June 14 at Tuas Boulevard Yard, attended by over 100 staff from Sembcorp Marine and Shell project teams. Speaking at the event, Sembcorp Marine President and CEO Mr Wong Weng Sun stressed the commitment of all involved in the project to execute their daily work responsibilities safely and efficiently. He said, Today s quality underpins tomorrow s safety. Sembcorp Marine must and will ensure that the reliability of our finished product is top-notch, as this is critical to safeguarding the well-being of those working aboard the Vito FPU after we have delivered the project. The Vito FPU, designed with a 4-column semi-submersible hull and with topsides weighing 9,200 tonnes, can produce 100,000 barrels of oil per day and 100 million standard cubic feet per day of gas. The Vito host will be located at a water depth of 1,234m in the Gulf of Mexico, 241km south of New Orleans in the US. It is scheduled to be completed in the first quarter of Vito is a cost-effective deepwater development breakthrough for Shell, whose FPU contract with Sembcorp Marine is also its first direct collaboration with a Singapore yard. Sembcorp Marine President & CEO Mr Wong Weng Sun and Shell Construction Manager Mr Keith Smith at the Vito FPU strike steel ceremony Project management teams from Sembcorp Marine and Shell 14 DOLPHIN

15 PROJECT HIGHLIGHTS JOHAN CASTBERG HULL & LIVING QUARTERS STRIKE STEEL CEREMONY Project management teams from Sembcorp Marine and Equinor The Johan Castberg Hull and Living Quarters strike steel ceremony took place on June 21 at the Tuas Boulevard Yard Steel Fabrication Workshop. This event marked the start of the project s fabrication sequence with the cutting of the first batch of steel and was attended by over 50 staff from Sembcorp Marine and Equinor project teams. 55m wide and 295m long and is self-contained for harshenvironment operation, with living quarters accommodating up to 140 personnel. The project is scheduled for completion in the first quarter of Speaking at the event, Sembcorp Marine Head of Singapore Yard Operations Mr Wang Zijian thanked Equinor for entrusting the major project to Sembcorp Marine. He emphasised the goal of executing the project with zero harm to people, property and the environment, which is also in line with Equinor s I am Safety pledge. Mr Wang said, Please be reminded that regardless of rank or seniority, you are empowered with the authority to stop ongoing work whenever you observe any unsafe conditions or behaviour. At Sembcorp Marine, this is one of the ways we foster a culture of ownership and responsibility towards one s own safety, and the safety of those around us. Artist s impression of Johan Castberg FPSO Johan Castberg FPSO Project manager Mr Thomas Bernt said, This strike steel ceremony is three weeks ahead of schedule, which is impressive. The cooperation we have developed with both teams over the past seven months will continue to be strengthened in the phases to come. Safety will continue to be our top priority because we want everyone to go home safely. The Johan Castberg FPSO will be deployed at the Johan Castberg field development in the Barents Sea, about 240km from Hammerfest, Norway. It will have a hull approximately Sembcorp Marine Head of Singapore Yard Operations Mr Wang Zijian and Johan Castberg FPSO Project Manager Mr Thomas Bernt initiating the first steel cut AUG

16 AROUND THE YARDS & OFFICES INNOVATION CARNIVAL 2018: INNOVATION THROUGH LIMITLESS IMAGINATION On July 31 and Aug 1, Sembcorp Marine Admiralty Yard held its 18th Innovation Carnival, themed Innovation through Limitless Imagination. This carnival is part of the Group s efforts to encourage employees to continuously explore creative ideas that can improve productivity, cost savings and safety standards. To put emphasis on the theme, Dr Sastry Kandukuri, DNV GL Singapore s Additive Manufacturing Lead and Principal Subject Matter Expert, was invited to share his valuable insights on Additive Manufacturing applications and disruptive advantages in the oil and gas industry. Guest-of-honour Ms Wong Lee Lin visiting the exhibition booth put up by Operations Support Department The event s guest-of-honour, Sembcorp Marine Advisor Ms Wong Lee Lin, as well as General Manager of Operations, Mr Tan Cheow Nam, encouraged all teams to never cease exploring new innovative methods so as to remain competitive and relevant in the global O&M market. The carnival saw 16 winners out of 50 interesting submissions from 10 departments across production and non-production divisions. Best Innovation Award (Production) went to the Operations Support Department for their Self-Adjustable Gangway Raised Stool, while Best Innovation Award (Non-Production) was won by Engineering Design Office Department for their H2D submission. Drone technology on display Judges evaluating one of the submissions Winners of the Innovation through Limitless Imagination 2018 Innovation Carnival 16 DOLPHIN

17 AROUND THE YARDS & OFFICES AFRICAN JOURNALISTS VISIT TUAS BOULEVARD YARD On July 11, nine African business journalists along with officials from the Ministry of Trade and Industry (MTI) visited Sembcorp Marine Tuas Boulevard Yard as part of the African Journalists Visit Programme (AJVP). AJVP is a biennial event organised by the Ministry of Trade and Industry and Ministry of Foreign Affairs. It invites journalists from major African publications to Singapore with the aim of showcasing Singapore s capabilities across different industries and building positive mindshare of Singapore as a choice business partner. The African journalists attending an introductory session on Sembcorp Marine The theme for AJVP 2018 is Partners for the future, focusing on planning and innovation. During their visit to Tuas Boulevard Yard, the African journalists were given a comprehensive introduction of Sembcorp Marine, the Group's innovative Gravifloat solutions, and a tour of the yard. Section Manager (Production & Structure Fab) Mr Dennis Neo giving the African journalists a tour of the automated steel fabrication workshop at Tuas Boulevard Yard GOOD HOUSEKEEPING STARTS WITH US Winners of the Housekeeping Programme Estaleiro Jurong Aracruz (EJA) recently conducted a Housekeeping Programme aimed at encouraging employees to come up with good housekeeping ideas that will help improve working conditions and productivity as well as eliminate hazards and accidents. Winners of this programme were rewarded with gift cards. AUG

18 AROUND THE YARDS & OFFICES GETTING TO KNOW P.T. SMOE INDONESIA Aerial view of P.T. SMOE In this issue of Dolphin, we learn more about P.T. SMOE, a Sembcorp Marine facility located in the Kabil Industrial Zone of Batam, Indonesia, by speaking to its President-Director, Mr Ron Chia. Dolphin: Tell us more about P.T. SMOE. Mr Ron Chia: In the early 2000s, SMOE (now Sembcorp Marine Offshore Platforms) was facing many challenges due to the lack of space and direct workforce. We needed an overseas yard of about 30 hectares that was near to Singapore to operate fabrication of structures and pipe spools at a relatively low cost. The fabricated items would be conveniently transported back to Singapore for assembly on the offshore platforms or modules. In 2003, SMOE purchased the first plot of land, at 15 hectares, in Batam, which became Phase I of P.T. SMOE yard. Subsequently, another 15 hectares of land was acquired as Phase II. The bulkheads at Jetty 1 and Jetty 2 were designed for loadouts of up to 10,000 tonnes and 30,000 tonnes respectively. Shortly after acquiring Phase II, we were awarded the module assembly contract for Australia Pacific LNG s liquefied natural gas facility, which saw a need for us to further expand the yard into two more phases Phase III at 25 hectares and Phase IV at 12.7 hectares. P.T. SMOE successfully delivered the project, which comprised 69 modules totalling 43,000 tonnes. With this success, the yard began to deliver modules for Wheatstone LNG and Yamal LNG in the following years. The largest offshore platform delivered was the Gajah Baru Central Processing Platform weighing 8,480 tonnes for Premier Oil. Phase V with an area of 17 hectares was added in 2015, bringing the total land area at P.T. SMOE to 85 hectares. Today, P.T. SMOE is well equipped with offices, workshops, warehouses, a welding centre, medical centre, fire station, training & learning centre, blasting & painting facilities, as well as supporting construction equipment and machines. D: Why was Batam, Indonesia, chosen as the location for P.T. SMOE? RC: There are four key reasons. Firstly, Batam is a Free Trade Zone, which is important for delivering fabricated items back to Singapore without additional customs duties. Secondly, its close proximity to both Singapore and the international shipping route enabled us to optimise our operations conveniently. Thirdly, Batam has abundant space and native skilled workforce. Last but not least, the island is an industrial city with all the necessary supporting services, including non-destructive testing, galvanising and machining. P.T. SMOE is located at the Kabil Industrial Park, which is zoned as Vital Object by the Indonesian Government. This means the industrial park enjoys the same level of protection as the International Airport, which is important as we have the assurance of minimal disruption to our operations. 18 DOLPHIN

19 AROUND THE YARDS & OFFICES D: What is P.T. SMOE known for? RC: We are known in the market for the following product areas: - Oil & Gas Fixed Platforms: Integrated, Process, Drilling, Wellhead, Accommodation, Jackets & Piles - Oil & Gas Modules: Water Injection, Compression, Power Generation, Living Quarters, PAU/PAR for Onshore and E-house - Wind Farm: Offshore sub-station, Jackets & Piles D: What projects is P.T. SMOE currently working on? RC: We are currently working on pipe spool and structural fabrication for the BP Indonesian Tangguh LNG Expansion Project. The customer ordered 550,000 dia-inches of piping fabrication and 1,400 tonnes of structural fabrication. We are expecting to secure more fabrication work for this project as we believe our performance has won over both our customer, CSTS Consortium, and the end user, BP Indonesian Tangguh. D: What does P.T. SMOE bring to the Sembcorp Marine Group? RC: P.T. SMOE is capable of delivering a full spectrum of turnkey solutions that include engineering, procurement, construction, installation and commissioning services. With our well-established and large-scale fabrication yard, P.T. SMOE is able to attract customers looking for a single fabrication location for their sizeable projects, such as multiple offshore platforms and jackets; multiple FPSO and FLNG modules; and onshore LNG modules. On top of that, our fabrication capabilities are relatively low in cost and we have readily available workforce and space, putting us in a good position to support Sembcorp Marine projects in Singapore. D: What does P.T. SMOE bring to Batam? RC: P.T. SMOE is committed to reducing the impact of its business on the environment and we have several corporate social responsibility activities in place to support the local communities. These include: - Community Care Programme: a health clinic for nearby villages; complimentary healthcare services by our doctor at the yard; donations to the Kabil District hospital; donations and refurbishment of an orphanage. - Saving Resources Programme: waste segregation; Reduce Reuse Recycle (3R) Programme; Energy Conservation Programme for reducing CO 2 emissions; and Pollution Prevention via active monitoring of sea water, domestic water; air quality and stack emissions; and proper disposal of hazardous wastes. At the same time, P.T. SMOE is one of the largest employers in Batam. D: What are some interesting facts about Batam? RC: Located only 20km away from Singapore, Batam is the largest city of the Riau Islands Province of Indonesia. The predominant ethnicities here are Javanese, Malays, Batak, Minangkabau and Chinese. The island is an industrial hub with electronics factories, a large and growing ship repair industry and an Donations and refurbishment of Wali Songo Orphanage at Kampung Batu Besar, Batam AUG

20 AROUND THE YARDS & OFFICES even larger oil service sector. Batam is also a popular tourist and golfing destination, with 1.8 million visitors in Batam s major religion is Islam, followed by Christianity and Buddhism. Besides the official Muslim public holidays, Christmas and Chinese New Year, the island s daily life is filled with ceremonies that have religious and mythical elements expressed in dance, music and other art forms. Some of the most popular traditional dances are Jogi Dance, which is uniquely Batam, and the Zapin Dance that has strong Arabic influence. Batam can be easily accessed through its five international ferry terminals and an international airport. President-Director of P.T. SMOE, Mr Ron Chia (centre), at work P.T. SMOE 2017 year-end celebrations 20 DOLPHIN

21 AROUND THE YARDS & OFFICES EJA LAUNCHES INTEGRATED WORKSHOP FACILITIES EJA President Mr Altaf Hossain (left) presented the Story of Singapore, written by the late Mr Lee Kuan Yew, to the Governor of Espirito Santo, Mr Paulo Hartung Mr Altaf Hossain giving a welcome speech On May 24, Estaleiro Jurong Aracruz (EJA) officially launched its Integrated Workshop Facilities the most modern of its kind in Brazil which is set to boost the company s steel fabrication capacity to meet future needs. The ceremony was attended by the Governor of Espirito Santo, Mr Paulo Hartung; the State Secretary of Development, Mr José Eduardo Azevedo; Mayor of Aracruz, Mr Jones Cavaglieri; Municipal Secretary of Development of Aracruz, Mr Divaldo Crevelin; and Vice President of the Federation of Industries of Espírito Santo, Mr José Carlos Zanotelli, among other distinguished guests. The 120,000sqm workshop is fully covered and boasts a steel processing capacity of over 4,000 tonnes per month. Its standout features include a complete range of automated cutting and assembly machinery for the construction of large tubular structures and pipe spools. In addition, the workshop is capable of constructing steel structures for different applications, including building and bridge construction. Other ancillary facilities include a hydroblasting chamber and painting workshop. EJA EVACUATION SIMULATION A SUCCESS In May 2018, Estaleiro Jurong Aracruz (EJA) successfully organised a Vessel Abandonment Simulation that aimed to train 2,500 employees working aboard vessels to respond to emergencies swiftly and evacuate in a safe and orderly manner. The exercise also helped these employees understand command and control decisionmaking concepts in critical situations. The simulation was conducted by a multidisciplinary team of 50 professionals, including contractors as well as customer and EJA representatives. EJA employees leaving an FPSO during the evacuation simulation AUG

22 AROUND THE YARDS & OFFICES SEMBCORP MARINE HOSTS MINISTRY OF EDUCATION DELEGATES Ministry of Education North 7 School Cluster representatives touring Tuas Boulevard Yard On June 20, Sembcorp Marine hosted delegates from the Ministry of Education North 7 School Cluster at the Sembcorp Marine Tuas Boulevard Yard. As part of a Learning Journey Programme, some 17 principals, vice-principals and heads of department from junior colleges, secondary schools and primary schools visited the yard to learn more about the Group and its work processes. Sembcorp Marine s representatives discussed the Group s capabilities, leadership development and employee engagement with the visitors, and described how the Group successfully leveraged innovation and technology to develop new areas for growth and long-term sustainability. The visitors were also briefed on the Group s commitment to Total Workplace Safety & Health, a top priority for Sembcorp Marine and its customers. Representatives at the Tuas Boulevard Yard Learning Centre Principal of Woodlands Primary School Ms Winnie Tan presented a token of appreciation to Sembcorp Marine Chief Human Resource Officer Mr Chua San Lye 22 DOLPHIN

23 AROUND THE YARDS & OFFICES NURTURING THE NEXT GENERATION OF ENGINEERS Sembcorp Marine is committed to supporting youth education and regularly hosts visiting academic institutions at its yards. These sessions, aimed at sharing Sembcorp Marine s industry expertise, also strengthen the Group s community engagement efforts. In Sembcorp Marine s latest Insight Programme, the Group aims to enhance student learning through hands-on guidance from operational specialists and by providing the students with first-hand industry experience. LAUNCH OF JACK UP RIG P2052 (NJORD) On June 13, lecturers from ITE College (West) were invited to witness the sail-away of P2052 NJORD at Tuas Boulevard Yard. This was the last of the nine rigs sold to Borr Drilling.? Did You Know Besides education, Sembcorp Marine actively supports sports, health, nation-building, environmental causes and the arts. FRENCH STUDENTS YARD VISIT On June 28, Sembcorp Marine hosted students from the IFP School (France) at Tuas Boulevard Yard, where the latter had the opportunity to view the yard s integrated capabilities, state-of-the-art steel fabrication facility and ongoing projects. Sembcorp Marine senior management with representatives from ITE partners IFP students with Sembcorp Marine staff P2052 successfully launched IFP students learn about Sembcorp Marine s business innovation AUG

24 STAFF SPOTLIGHT ASMI SEVEN- A-SIDE SOCCER TOURNAMENT On July 8, three Sembcorp Marine teams participated in the ASMI 23rd seven-a-side soccer tournament at the Town Tampines Hub. Team 3 from Sembcorp Marine Pandan Yard clinched the first runner-up position. Team 3 from Sembcorp Marine Pandan Yard emerged First Runner-Up Sembcorp Marine Team competing at the tournament Sembcorp Marine team players ASMI BOWLING TOURNAMENT 2018 Sembcorp Marine employees put their best foot forward at the bowling tournament Sembcorp Marine staff participated in the 26th ASMI Bowling Tournament on June 24, where Ms Rohani bte Salio emerged first runner-up in the Ladies Individual category. The friendly competition was held at Westwood Bowl in the Civil Service Bukit Batok. Ms. Rohani bte Salio and her team Ms Rohani bte Salio was First Runner-Up in the Ladies Individual Category 24 DOLPHIN

25 STAFF SPOTLIGHT ANNUAL ROADSHOW CREATES AWARENESS ON FRAUD AND THEFT CRIMES On July 17, an annual roadshow for Sembcorp Marine s foreign workers took place at Tuas Lodge, a Sembcorp Marine workers dormitory. Jointly organised by the Singapore Police Force, the Migrant Workers Centre and Sembcorp Marine, this roadshow was attended by more than 300 foreign workers, who learnt how to be vigilant against fraud and theft crimes. The Migrant Workers Centre also promoted their upcoming community engagement activities that will be made available to the workers soon. Representatives of the Singapore Police Force with Sembcorp Marine workers Sembcorp Marine workers learnt how to guard against fraud and theft ECOLOGICAL TOUR OF THE ARICANGA MOUNTAIN In celebration of the World Environment Day, Estaleiro Jurong Aracruz (EJA) took part in the 24th Ecological Tour of the Aricanga Mountain on June 5, organised by Aracruz City Hall in partnership with Oriundi Supermarket. This eco tour aimed to create awareness for socially responsible travel and environmental conservation. It attracted more than 1,200 participants. EJA staff participated in the Ecological Tour of the Aricanga Mountain AUG

26 STAFF SPOTLIGHT CHARITY CAMPAIGN FOR ELDERLY IN ARACRUZ From June 18 to 29, EJA held a charity campaign through the sale of Brazilian soul food to support Recanto do Ancião, a philanthropic institution that takes care of more than 50 elderly people in Aracruz and the region. With the support of NEFFA, a food caterer, more than R$4,000 (> S$1400) were raised for the purchase of daily food necessities, personal care items and cleaning materials. EJA employees doing their part to support Recanto do Ancião APPRENTICE GRADUATION CEREMONY In May this year, EJA held a graduation ceremony for 50 trainees who attended a one-year Apprenticeship Programme organised by the yard. Aged from 16 to 18 years old, these trainees successfully completed courses in Industrial Maintenance Mechanics and Administrative Processes, which equipped them with the necessary skills and experience in the industry. They came from a diverse range of backgrounds in the communities of Aracruz and Fundão-ES. For the upcoming class of 2018/2019, EJA will offer training in Administrative Processes, Welding, and Plumbing to another batch of 50 students. Senior representatives of EJA celebrating the graduation of 50 trainees from the class of 2017/ DOLPHIN

27 STAFF SPOTLIGHT WORKPLACE SAFETY & HEALTH POP QUIZ On July 13, Sembcorp Marine organised a Workplace Safety & Health quiz to raise awareness among employees of the Group s commitment towards the Vision Zero incidence goal. Fifteen out of 158 quiz participants won $50 shopping vouchers each. Winners of Workplace Safety & Health Pop Quiz The quiz questions were as follows: 1. Sembcorp Marine strives towards a incidence goal through a holistic approach to total workplace safety and health. a. Vision Two b. Vision One c. Vision Zero [correct answer] 2. Sembcorp Marine s CultureSAFE initiative includes a programme known as PPE-SSS. What does PPE-SSS stand for? a. Plan, Prepare, Execute Stand Up, Speak Up for Safety [correct answer] b. Push, Pull, Prepare Stand Up, Sit Down for Safety c. Plan, Plan, Execute Speak, Shout for Safety 3. Within any Sembcorp Marine yard premises, who is allowed to exercise the Stop Work Authority to prevent any potential safety incidents from happening? a. Employees, Customers, Vendors and other stakeholders [correct answer] b. Customers and Senior Management only c. Singapore Police Force and Singapore Civil Defence Force only 4. In designated areas and vessels, mobile phones with cameras are prohibited and photography and filming are not allowed. True or False? [True] 5. For your own safety, you are not allowed to use your mobile phones while a. Standing at the safe side of the pathway b. Crossing the road or cycling within the yard [correct answer] c. Sitting down in the office 6. Sembcorp Marine strictly prohibits a. Self-medication; if unwell, you must see the company doctor b. Consumption of alcohol and drugs in the yard [correct answer] c. Sitting more than 4 hours continuously on an office chair at your workstation Information on Sembcorp Marine s Workplace Safety & Health can be found at Thank you very much for supporting the quiz, and congratulations to all the winners. AUG

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