8325 November 2012

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Mission stateMent To be a world leader in ship repair, conversion, new building and offshore marine engineering, we maintain trusting relationships with our customers, employers, and partners, yielding best returns for shareholders, society and environment. Depending on our talented engineers working alongside with an efficient project management team and a highly skilled workforce, we could guarantee to deliver the projects we undertake timely and professionally.

CoSCo Dalian wins jack-up rig

new generation offshore wind turbine installation jack-upwins recognition from JSEIC

The contract for the newbuild jack-up drilling platform, awarded to COSCO Dalian Shipyard by British owner Foresight Limited, recently come into effect. This is the second offshore newbuilding contract COSCO Dalian Shipyard has secured following that of the ultra-deepwater drillship, Dalian Developer.

The jack-up has a total length of 74.09 metres, with a moulded breadth of 52.8 metres and a moulded depth of 7.92 metres. The legs are 477 feet in length. It has an operating water depth of 100 metres and is equipped with 5 CAT3516CHD generators and can accommodate a crew of 120 people. The jack-up is leading

design in China, with respect to both equipment and technology.

After expanding its business scope into offshore newbuilding, based on experience and knowledge gained in their existing offshore convers ion bus iness, COSCO Dalian Shipyard has been making continuous efforts to develop their offshore newbuilding products. The shipyard not only conducts strict quality control, but also pays great attention to the standardization

of such links as technological innovation and production planning. Rigorous technical preparation and reasonable production process control brings the shipyard rich experience as well the trust of the British owner.

Recently, the chairman of the British owner, Mr. Ravi Mehrotra, and the CEO, Mr. Anil Deshpande, paid a vis i t to COSCO Dalian Shipyard and attended a meeting about the implementation planning for the project. The British owner spoke highly of the facilities and pre-preparation of COSCO Dalian Shipyard and expressed their hope that the shipyard would maintain their good production procedures and deliver the platform on time.

On November 20, COSCO Guangdong Shipyard named and delivered N353, the 35ooodwt bulk carrier to its Turkey owner SEMIH SOHTORIK MANGEMENT. The lady sponsor, Mrs. Ceylan Sel Sohtorik, named the vessel

“MARINE PRINCESS”. Mr. Emir Sohtorik, the chairman of the ship owner’s company and Mr. Huan Yueshi, the Deputy G.M. of COSCO Guangdong Shipyard signed the delivery contract and witnessed the big moment.

It was recently announced by the Jiangsu Economic and Information Technology Commission (JSEIC) that the next generation self-propelled offshore wind turbine installation jack-up, designed and built by COSCO Nantong Shipyard, has been put on the list of “the first set of major equipment of Jiangsu Province in 2012”. This is COSCO Nantong’s second offshore product to enter the list; the SEVAN 650 cylindrical ultra-deepwater drilling and storage platform was the first.

The list of “the first set of major equ ipment o f J iangsu Province in 2012” is compiled by the Jiangsu Economic and Information Technology Commission (JSEIC) with the aim of encouraging the

development of the high-end equipment manufacturing industry in Jiangsu Province.

Carrying out multiple functions, such as offshore wind turbine transportation, heavy lifting and dynamic positioning, the next generation self-propelled offshore wind turbine installation jack-up is a brand new ultra-large offshore engineering structure - a synthesis of ship and offshore platform. The project has received 6 invention patents and yielded good economic returns.

COSCO Nantong Shipyard has the capability to undertake the engineering, procurement and construction (EPC) of such specialized offshore engineering

vessels and has already entered into the implementation phase. The two second-generation ultra-l a rge o f f shore w ind tu rb ine installation vessels, designed, built and delivered by COSCO Nantong Shipyard, have won full recognition from the ship owners. The third generation wind turbine installation jack-up, N370, has been successfully delivered to its Danish owner as part of the Dong Energy Power A/S.

CoSCo Dalian Shipyard delivers FPSo Petrobras-63On November 15, COSCO Dalian

Shipyard delivered FPSO NISA, which is the fifth FPSO conversion accomplished by COSCO Dalian Shipyard with Petrobras as the final user. NISA will be deployed in the Campos Basin in Brazil.

NISA was converted from a 320 000-dwt ULCC, built in 1983. After the conversion it was named Petrobras-63. The vessel is 342 metres in length, with a moulded breadth of 57.36 metres and a moulded depth of 28.5 metres.

Petrobras-63 has a daily production capacity of 140,000 barrels of oil (bopd) and 35 million cubic metres of gas. The storage capacity by design is 1.4 million barrels and the operating depth is 1,200 metres. Classified by ABS, NISA is equipped with a spread mooring system and is designed to work for 25 years successively without docking work. The conversion involved 17 000 tons of steelwork, the implementation of the new moor ing system, the fabrication and installation

of module stools, chain stopper platform, fair leader supports, seawater lift pumps room, bow and stern offloading station, support structures for upper & lower risers, deck crane foundations, helicopter deck, lay down area, deck piping manifold, as well as steel structure upgrading of the living quarters, approximately 380,000 meters of cable laying, installation & testing of piping system, tank coating and the newbuilding, lifting and installation of 16 modules.

35,000DWT BULK CARRIER

Dear Mr.Li,

As you well aware our third management vessel MV MARINE PRINCESS(N353) has already been delivered to the

Owners and she sailed on 23-11-2012.

Presently we have not any other projects and we will close site office today and will return back to our country Turkiye.

I have spend nearly three years in your good shipyard and your good country as well...I have severel memories including

the shipyard and China in overall that whole of them will have been kept with me forever...

Before leaving from China, I would like express my utmost thanks to you for your good cooperation and support to me.

I hope to work with you again and hope to see you again in future.

Meantime, I would like to send attached good photo for N353 (MV MARINE PRINCESS) , maybe you can use it your any press use..

Best RegardsVehbi DIKMEN

Site office Mngr. for N352-N353 Cosco Guangdong Shipyard

n353 naming anddelivery

Newbuilding2

n253sea trails

n254 launching

two special type shipsteel cutting in CoSCo Guangdong

StInGRAy pipe layer hoisting

Dolphin 57 project receives provincial award

n390/n391 drilling tender rigs naming ceremony

Good view received from one client

On November 1, COSCO Dalian Shipyard completed sea trials of the 92500dwt bulk carrier being built for VROON DRY CARGO B.V. The vessel is the fourth one in the series and will be delivered to the ship owners once all remaining items have been completed.

On October 31 , the s i x th vessel in the 925000dwt bulk carrier series, being built for Noble Charting, was launched in COSCO Dalian Shipyard. Its sea trails will be completed in late December.

On November 20th, COSCO Guangdong Shipyard started steel cutting for N395 in the yard ’s hul l work shop. The vessel is a cattle carrier and is being built for a Dutch owner. The successful beginning of the production phase was celebrated in the yard.

In the afternoon, the yard celebrated the steel cutting for a second vessel, this time a drilling tender. Mr. Huan Yueshi, the yard’s deputy G.M., and

representatives from the ship owner and class society co-witnessed the moment with the offshore construction team.

On October 21, the shallow water pope lay barge STINGRAY, converted by COSCO Nantong Shipyard for Dutch owner Van Oord, was successfully installed its pipe layer and undocked. The conversion involves the installation of the pipe layer, the construction of the living quarters and the hull structure engineering. After undocking, the conversion will enter into its phase-out stage.

At the Dongguan Science & Technology Award Conference 2012, held on November 3, the Dolphin 57 design & construction project, submitted by COSCO Guangdong Shipyard, won the Guangdong Province Scientific and Technological Progress Award.

In recent years, following

an “Import, absorption and re-creation” pattern, COSCO Guangdong Shipyard has gained strength through the combination of on-site management and techno logy and s t imulated i n n o va t i o n i n p r o d u c t i o n procedures and is now making steady progress in improving product construction technology.

On November 26, China’s first two drill ing tender rigs, N390 and N391, being built by COSCO Nantong Shipyard for the Norwegian Seadrill Company, were named T-15” and “T-16’ respectively. The two Drilling Tender Assistant Rigs are 98m long, 27m wide, 11m deep and accommodate 160 persons. COSCO Nantong Shipyard is responsible for detail design, production design and procurement of all the equipment. At present, COSCO Nantong Shipyard is building four drilling tender rigs, including T-15” and “T-16’, which will be used for drilling operations in shallow and deepwater areas.

Mr. C .F. Wang, the v i ce president of COSCO Nantong Sh ipyard rece ived a l e t te r from Mr. Pete Saliaris, the vice pres ident of EPS Corros ion Control Inc., on August 27, 2012.

As Mr. Pete said in the letter, he has worked with COSCO Nantong Shipyard for more than 14 years and cooperated with many of our supervisors.

He knows everything about the yard, every paint supervisor and even many of the shipyard workers. During the latest repair of one of their American vessels, Mr. Pete was yet again impressed by the workers and especially by the talent, skills, cooperation and manners of Mr. Liu Jia, the painting supervisor appointed as point of contact.

92,500DWT BULK CARRIER

Offshore 3

SEVAn 650 4# undocking n499 steel cutting ceremony

SEVAn 650 3# block erection

n389 drilling deck successful hoisted

On November 9, all the in dock work was completed on N419, the cylindrical ultra-deep drilling platform SEVAN 650 4#, being built for SEVAN DRILLING, and it was successfully undocked one day ahead of schedule.

During the docking period,

the #1-6 (EL13.4m-24.5m) main hull sections were lifted up onto the hull. Welding of the main hull up to the 24.5m level is nearly completed. In December, 9 blocks (EL24.5-36.5M) will be hoisted as planned, in preparation for commission and delivery.

The cylindrical ultra-deep water semi-submersible drilling rig is 99 meters in diameter, 75m in width and is classed by DNV. It has been built to meet very advanced requirements using fabrication techniques of the highest quality among its type in the world.

On Oc tobe r 29 , a s t ee l cutting ceremony was held for the jack-up barge, N499, being designed and built by COSCO Qidong Offshore for Australian owne r BAM CLOUGH. The owner’s representatives and representatives from ABS, as well as members of the project team, co-witnessed the moment.

Jack-up barge N499 is 46.5 metres in length, 30.3 metres in width and 4.5 metres in height, with a design draft of 2.4 metres. The main hull is 1955 tonnes in weight, while the four 55-metre-long jack-up legs are 650 tonnes in weight. The jack-up barge is equipped with a crane with a lifting capacity of

300 tonnes. After the completion of block fabrication in COSCO Nantong Shipyard, which should be completed by the end of the year, the project is scheduled to be moved to COSCO Qidong Offshore for block erection. The jack-up barge is scheduled to serve in Australia.

Establ ished in 1964, the Austral ia-based company is a joint venture between BAM International B.V. and Clough. Specializing in subsea engineering, BAM CLOUGH has enjoyed a long-standing reputation in Australia and South-east Asia. Clough was established in 1919 and is a well renowned oil and gas engineering company in Australia.

In COSCO Qidong, the erection of five main blocks, including the Living Quarters, Dril l ing Floor and Lower and Midd le par ts of the derrick, was completed successfully.

All five blocks are core parts of the rig. The Living Quarters block

weighs 920tonnes, the Drilling Floor block weighs 1110tonnes, and each derrick block weighs 350 tonnes. The yard arranged a special ized project team to ensure that the hoisting program was completed accurately and efficiently.

Compared with SEVAN 650 1# and 2#, SEVAN 650 3# has been greatly improved in terms of its completeness, making a solid foundation for the forthcoming s y s t e m c o m p l e t i o n a n d commissioning work.

On November 5, the utility module of the Cheviot topside (N389), being built by COSCO Nantong Shipyard for ATP Oil & Gas, was successfully completed hoisting in COSCO Qidong base.

The dr i l l ing deck is 44.5 metres in length, 40 metres in width and 800 tonnes in weight. The lift was carried out after the installation of the pipe work and electric cabling. The task was not an easy one, and there was significant risk of collision. Using a 3200t crane, the project team made an accurate calculation of the centre of gravity, ensuring the deck remained steady, even

during the hoisting. As a result, the deck was put into place on the first try, which significantly reduced potential difficulties with subsequent adjustment and completion.

The total weight of N389 exceeds 12000 tonnes, which includes more than 7000 tons of utility module and more than 5000 tons of process module. Following completion of the the drilling deck, the hoisting and erection of the living areas (weighing more than 1100 tons), and the electric module (weighing more than 800 tonnes), among others, will be carried out.

Ship Repair & Conversion4

“Great hebei“ urgent repair and successful sailing

Repair of “Puteri Bangsa”

“Alcmene”repaired inCoSCo Zhou Shan

Exhibiting the ‘’COSCO Zhoushan spirit’’ won consequent firm booking

In September, the vessel "Great Hebei " had been damaged badly, in way of the bulbous bow and fore peak tank, due to a severe impact, and she needed to go into the floating dock for urgent repair. The owner arranged for the original builder to prefabricate the necessary steel blocks according to the original ship plans, and approached us for completion of the work in our dock. When we received the urgent request, and after considering the owner's interests and the required short repa i r pe r i od , we ca l l ed an

emergency meeting with every department immediate ly. We adjusted our docking schedule, and very innovatively, we transferred our hull technical backbone from COSCO QIDONG, which is our professional centre for offshore new building, and thus ensured we were well prepared for her docking.

When the owner’s prepared steel structure arrived at the sh ipyard, we found very b ig dimensional discrepancies between the block size and the actual onboard dimensions. In order to

reduce the losses for the owner, we carefully modified and machined the new structure: in fact we spent more time and energy on this modification than we would have if we had been producing the structure from scratch. After round-the-clock repair work, the vessel looked brand-new and departed successfully. The owner appreciated our utmost support and he lp when they were in need. At the same time, they are looking forward to long-term good cooperation with us.

“ Puteri Bangsa” (182m x 31m, GRT 26,736), is a tanker which belongs to our long-term client PT TRADA SHIPPING.. We have previously carried out a tanker to FSO conversion of another vessel for this client.

The ma in repa i r inc luded extensive oily water disposal, tank cleaning and treatment, almost 2000 tonnes of steel renewals and also normal machinery repairs with some additional assistance work. This involved an increase in steel renewals from 800 tons as per the original specification and the additional items of oily water disposal and tank cleaning when the vessel arrived at anchorage.

D u r i n g t h i s r e p a i r, t h e shipyard repair team enjoyed g o o d c o o p e ra t i o n b e t w e e n the superintendents, owner ’s representative and ship staff, controlling the work progression, quality and safety together. We generally organized the repairs and made the schedule reasonable and

On the morning of Nov. 1st, the DIANA ship “ALCMENE”Was ready to sa i l f rom COSCO Zhoushan Shipyard. Dur ing a 6-day repair period, all the job items were successful ly completed and the ship’s owner was highly appreciative of the yards efforts.

The main tasks for this vessel were hull painting, anchor renewal, bilge keel renewals, and other maintenance items. During the dry-docking period, the shipyard repair management team worked very hard and finished the sand blasting and 3-coat painting system within

two days; meanwhi le, they finished the bilge keel renewal and anchor renewal during the paint drying period. Regardless of whether it was day or night, they finished all dry-docking items in time.

The repairs were finished successfully two days ahead of schedule and the work team was h igh ly commended by the ship owner. The client also apprec iated the good work performed on this project and was interested to continue the good cooperation with the yard in the future.

VLCC “ALFA GLORY” was under repair in COSCO Zhoushan Sh ipyard. In Ju ly 2012. Our po s i t i v e a t t i t u de and good brand reputation resulted in our company successfully winning the repa i r contract for ALFA GLORY, which belongs to the German shipowners GULF MARINE MANAGEMENT, after they had completed several rounds of tough negotiation with many ship-repair enterprises. Repairs on "Alfa" mainly involved the repair and renewal of around 1600 tonnes of steel structure, including work on the main deck, 15 cargo tanks and two slop tanks, and erection o f the assoc ia ted necessary

staging, which in total is about 380 thousand cubic meters. "Alfa Glory" is our largest project this year and the first opportunity we have had to cooperate with this company. On time completion has been held in high regard.

August is the most challanging period for ship repair because of labor tensions and hot weather. In the face of many difficulties, we upheld the traditional "Cosco Zhoushan spirit", solved challenges efficiently and worked with a clear sense of service spirit. In order to ensure the progress of production and remain on schedule, we carr ied out a system of very successfu l week ly meet ings:

even executive deputy general manager Mr.Cao participated in the meet ings every Saturday and the department heads were also hands-on. According to the weekly requests of the client, the production dept. arranged appropr iate product ion tasks after the meeting and made the necessary labour arrangements. If staff shortages occurred, the person in charge made alternative arrangements, such as overtime working throughout the night.

During the typhoon season, "A l fa " success fu l l y endured typhoon conditions many times. In the fight against "Haikui", the repair team members on duty on

board immediately responded to the emergency. They immediately agreed a plan to make emergency arrangements: deciding to start the main engine and restore marine power. After the typhoon, the shipowners highly praised the yard and our effective post typhoon rehabilitation work.

In the latter period of the r e p a i r c o n t r a c t , u n c e r t a i n factors resulted in addit ional work emerging. Because of the shipowners’ budget constraints, w e c o n s i d e r e d t h e p r o j e c t from the point of view of the shipowners needs as much as possible.

In early November, the VLCC

"Alfa" repair was successfully c o m p l e t e d a n d t h e w h o l e production cycle and Check-out concluded successfully. "Alfa," the successful repair contract, not only embodies the "Cosco Zhoushan Spirit", but also won us a good reputation and laid the basis for our future cooperation with the Gulf Marine Management company. The effectiveness of our company’s work ethic and full range of services clearly achieved the satisfaction of this customer. Gulf Marine Management company has confirmed a firm booking for a second vessel GEMINI GLORY and expressed their willingness to cooperate further.

then adjusted the plan as required when encountering additional repair i tems after d iscussion with the superintendent, so that conflicts during the repairs were avoided and the work schedule was executed well.

F i na l l y, t he vesse l sa i l ed successfully in Nov. 9th 2012 after

all repairs had been completed, despite the hot weather, storms, typhoon prob lems and huge additional steel repairs etc. The final bill was confirmed one day before the vessel departed after negot iat ion with the owner ’s representative, and the outcome was very satisfactory for all parties.