Response to SGX Queries::

Issuer & Securities

Issuer/ Manager
Stapled Security

Announcement Details

Announcement Title
Response to SGX Queries
Date &Time of Broadcast
21-Jul-2016 18:49:12
Supplementary Title
On Other Announcements
Others (Please Specify)
SGX Query on BT Articles dated 20 July 2016 and Company's Announcements dated 8 and 11 July 2016
Announcement Reference
Submitted By (Co./ Ind. Name)
Siew Wun Mui
Vice President
Description (Please provide a detailed description of the change in the box below)
We refer to the Business Times articles "Swiber downplays retrenchment talk" and "Upset over Swiber Holdings disclosures...or lack of" dated 20 July 2016 and the Company's announcements dated 8 July 2016 and 11 July 2016. SGX's queries to the Company on the status of the US$710 million contract and the Company's financial obligations led to the Company's announcements of 8 July 2016 on the delay in the US$710 million project and the demand letters. Please address the following queries in an announcement to be released via SGXNET by 25 July 2016:

1. US$710 million offshore field development project in West Africa (the "Project" )

The Company disclosed that due to weakness in the oil and gas sector since the latter half of 2014, the project has not been able to progress in accordance with its original schedule. The Company first announced the award of the contract on 15 December 2014. The Project was to commence in the first quarter of 2015 and completion was expected to take place in the middle of 2017.

(a) When did the Company first become aware that the Project would not be able to progress in accordance with the original schedule and under what circumstances?

(b) Are there any material conditions in the contract which were not fulfilled, which led to the delay in the progress of the Project? If so, why did the Company not announce such material conditions when the announcement on the award of the Project was made on 15 December 2014?

(c) Why did the Company not make an announcement at the time of first knowledge of the delay or non-fulfillment of the material conditions?

(d) How much costs have been incurred by the Company on the Project? Will the Company be able to recover such costs from the oil and gas company? If not, why?

2. Letters of Demand

(a) Provide the Board's confirmation that the amount of US$4.76 million announced on 8 July 2016 is an aggregate of all demand letters including all statutory demands received by the Group that have not been fully paid off as at the date of that announcement.

(b) Are there any other material legal proceedings against the Company and/or its subsidiaries that have not been announced?

3. Delay in Proposed Subscription of Preference Shares in Swiber Investment Limited

In relation to the delay in the proposed subscription of preference shares in Swiber Investment Limited ("SIL") by AMTC Ltd (the "Subscriber"), we note that SIL had entered into a Preference Shares Subscription Agreement ("Subscription Agreement") with the Subscriber on 9 June 2016. The Company disclosed that it did not announce the Subscription Agreement as the Subscriber had requested for completion to be postponed.

(a) What was the completion date as stated in the Subscription Agreement?

(b) When did the Subscriber request that completion be postponed?

(c) Why did the Company not make an announcement on the signing of the Subscription Agreement on 9 June 2016?

4. Vessel detained in China

The Business Times article mentioned that Kaizen 4000 "due to start work on a project in August, is still sitting in a Chinese yard".

(a) Which project is the abovementioned vessel to be deployed?

(b) What is the status of the project?

(c) What are the reasons for the detainment of the vessel and what is the resultant impact on the Group?

DISCLAIMER: This announcement was prepared and issued by the named Issuer/ Manager to the Exchange. The Exchange assumes no responsibility for the correctness of any of the statements made, opinions expressed or reports contained in this announcement and is posting this announcement on SGXNet for the sole purpose of dissemination only. In the event of any queries or clarification required in respect of any matters arising from this announcement, such queries are to be made to the named Issuer/ Manager directly and not to the Exchange. The Exchange shall not be liable for any losses or damages howsoever arising as a result of the circulation, publication and dissemination of this announcement.