Sembcorp Marine has entered into an agreement to acquire a 12% stake in GraviFloat AS for US$4 million, with a right to increase its stake up to 20% by further equity injection. GraviFloat was formed to design, deliver and operate re-deployable, gravity-based, modularised LNG and LPG Terminals for installation in shallow waters. The investment represents a new business venture for the Sembcorp Marine group.

GraviFloat's near-shore LNG terminals are designed to be installed in shallow waters and are fully fixed to the seabed when in operation. GraviFloat LNG terminals can be designed for a variety of purposes and at almost any size. They can be designed as an LNG receiving and regasification capacity liquefaction terminal, as a mobile unit for stranded gas production and liquefaction, or for temporary production of associated gas to support oil production, to name a few more common applications.

Mr Harald Vartdal, CEO of GraviFloat AS, said: "We are pleased to welcome Sembcorp Marine as a stakeholder and partner and look forward to working together in new projects ahead. The GraviFloat system is developed as a cost effective solution to meet the trend toward natural gas fueling and is expected to help accelerate the build-out of natural gas terminal infrastructure, particularly in near-shore locations."

Mr Wong Weng Sun, President and CEO of Sembcorp Marine, said: "Our investment in GraviFloat represents the Group's ongoing quest to stay ahead and actively participate across a broad spectrum of the offshore oil & gas value chain. We are excited and keen to work together with Harald and his team in providing more cost effective solutions for our customers."

The GraviFloat technology (patent pending) allows the LNG terminal to be fully built and completed at a shipyard and installed in shallow waters to facilitate direct ship loading of LNG. The GraviFloat terminals are designed to offer a more cost-competitive solution compared with FSRUs (floating storage and regasification units) and land terminals and can be designed for both liquefaction and receiving terminal services.

The acquisition is not expected to have any material impact on the consolidated net tangible assets per share and earnings per share of Sembcorp Marine for the year ending December 31, 2014.

About GraviFloat AS
GraviFloat was incorporated in Norway in 2006 as a spin-off of LMG Marin, a Marine Engineering and Naval Architecture company. The company is headquartered in Bergen.

LMG Marin is one of Europe's leading independent naval architecture and maritime engineering companies, and is credited with conceptualising and designing a wide variety of commercial and naval ships, LNG ships, FPSOs and offshore vessels, with references from more than 1,000 ships built at shipyards worldwide. LMG Marin runs a highly advanced engineering organisation with a highly experienced team of engineers and naval architects. It is headquartered in Bergen, Norway.

About Sembcorp Marine
Sembcorp Marine is a leading global marine and offshore engineering group with over 50 years of experience and proven capabilities in repair, specialised shipbuilding, building of high- pecification jack-up rigs, fast-track construction of ultra-deepwater semi-submersible rigs, conversion of floating production and storage facilities as well as the engineering and construction of offshore platforms.

Headquartered in Singapore, Sembcorp Marine has a network of six shipyards in Singapore - Jurong Shipyard, Sembawang Shipyard, SMOE, PPL Shipyard, Jurong SML and Sembmarine Integrated Yard @ Tuas. The 73.3-hectare Sembmarine Integrated Yard @ Tuas Phase I facility commenced operations in August 2013. The Group's strategic presence spans Indonesia, China, India, United Kingdom and Brazil.

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