SembCorp Utilities to divest its 35% stake in Shenzhen Chiwan Offshore Petroleum Equipment Repair & Manufacture Co Ltd to SMOE

May 8, 2007

SembCorp Industries Ltd (SembCorp) announces that its wholly owned subsidiary, SembCorp Utilities Pte Ltd has (SembUtilities) entered into a Sale & Purchase Agreement for the sale of its 35% stake in Shenzhen Chiwan Offshore Petroleum Equipment Repair & Manufacture Co Ltd (CPEC) with SMOE Pte Ltd, a wholly owned subsidiary of SembCorp Marine Ltd (SembMarine).

CPEC is a joint venture company established within the Shenzhen Special Economic Zone, People’s Republic of China. Its primary activities include equipment inspection, repair and maintenance services for oil recovery and oil production platforms in the South China Sea.

The sale consideration is for S$1.3 million, taking into account CPEC’s net tangible asset value (NTA) as at 31 December 2006. The transaction is conditional upon receiving the necessary relevant approvals from the Chinese regulatory authorities. Following this divestment, SembUtilities will cease to hold any shareholding in CPEC.

The impact arising from the above transaction on SembCorp’s NTA and EPS for the financial year ending 2007 is not expected to be material.

Other than Mr Tang Kin Fei and Mr Goh Geok Ling, who are directors of SembMarine, none of the directors or controlling shareholders of SembCorp has any interest, direct or indirect, in the acquisition, save for the above.