OREANDA-NEWS.   Sembawang Shipyard, a wholly-owned subsidiary of Sembcorp Marine, has secured a long-term Favoured Customer Contract (FCC) from GasLog LNG Services Ltd., to provide ship-repair, refurbishment, upgrading and related marine services for its managed fleet of 20 LNG carriers. GasLog LNG Services Ltd. is a wholly-owned subsidiary of GasLog Ltd. ("GasLog"), an international owner, operator and manager of LNG carriers. The selection of Sembawang Shipyard as its LNG refit partner in Singapore, is also a great boost to Singapore’s status as a major global LNG hub.

This long-term maintenance and refit FCC contract signed in Piraeus, Greece, on 30th May, commits the repairs, refurbishment and upgrading of GasLog’s fleet of LNG carriers docking in Singapore exclusively to Sembawang Shipyard. It also supports joint planning, information and experience sharing, thus leveraging complementary resources to achieve sustainable targets in the areas of HSE (Health, Safety and Environment), quality, cost-efficiency and timely deliveries.

Mr. Theodoros Katemidis, General Manager, GasLog LNG Services Ltd. said, “Sembawang Shipyard is internationally recognised as one of the most technically competent and efficient repair yards in the world, especially in the area of LNG carriers repairs and upgrading. The selection of Sembawang Shipyard as our exclusive refit partner for our scheduled dry-docking in Singapore is in line with GasLog’s global refit strategy to work towards implementing best practices across GasLog’s entire fleet and thereby optimizing repair processes. Moreover, we have had many positive experiences with Sembawang Shipyard, which laid the foundation for us to enter into this long-term partnership arrangement with the Shipyard. More than these, the partnership is about trust and commitment between our two companies. We thus look forward to a long and successful partnership with Sembawang Shipyard.”

Ms. Wong Lee-Lin, Executive Director of Sembawang Shipyard said, "We are indeed honoured and delighted to be the chosen partner of GasLog, one of the world’s leading international owner and managers of LNG carriers. Partnering with GasLog LNG Services Ltd. will not only increase our market share of LNG repairs/upgrading business but will also enhance our capabilities level as a world-class shipyard for LNG carriers’ repairs and upgrades. We are confident that our long-term partnership will deliver visible mutual benefits and continuous improvement to both companies.”

With the signing of this long-term contract, Sembawang Shipyard can anticipate the refit of 3 to 5 GasLog's LNG carriers each year.

The above contract 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.