7425 February 2012COSCO SHIPYARD GROUP CO.,LTD. http://www.cosco-shipyard.com E-mail: panda_news@cosco-shipyard.com Tel.: 0086-21-58600111

VOLUME

Spring Festival Party 2012

Offshore P&D Project won national award

On 9th February, Mr. Walter Knur, the senior vice president of DVB Bank, visited the COSCO Shipyard Group. DVB Bank is the principle investor behind the Dalian Developer Project and the visiting team was warmly received by Mr. Wang Yuhang, the President of the COSCO Shipyard Group.

Both s ides he ld in -depth exchanges in regard to developing closer cooperation. Mr. Wang Yuhang expressed thanks for the long-term trust and support of the DVB Bank and advised that the COSCO Shipyard Group work jointly with DVB Bank in their common efforts to develop their business.

A t t h e Na t i ona l S c i en c e a n d Te c h n o l o g y R e w a r d Congress, held on 14th February, COSCO Shipyard’s ‘Design and Manufactur ing of Deepwater High-stability Cylindrical Drilling Platform’won the first prize in the state science and technology progress award category.

The 2011 State Scientific and Technological Awarding Ceremony was held at the Great Hall of the People in Beijing. Chinese President Hu Jintao, Premier Wen Jiabao, senior leader Li Changchun, Vice Premier Li Keqiang and other top leaders attended the meeting.

Mr. Nitao, the G.M of COSCO Nantong Shipyard, who in charge of the project team attended the award ceremony and was well recieved by Chinese President Hu Jintao, and other top leaders before the ceremony.

Th is i s the h ighes t pr i ze received by the COSCO Shipyard Group in the field of science and technology since the establishment of the COSCO Group. It is also the first time for a national offshore manufacturing enterprise to win a state science and technology award. It means that a breakthrough has been made in the design and manufacturing level of Chinese deepwater drilling complete sets of equipment, which will promote industrial science and technology advancement and high-end offshore manufacturing development and

will have a great effect on the development strategy and security strategy of the national deep sea energy industry.

On Feb. 15th, Mr. Mr. Wei Jiafu, President of the COSCO Group, and Mr. Ma Zehua, President and Deputy Secretary of Party Committee of the COSCO Group, and other leaders of the COSCO Group, received the COSCO Shipyard Group leaders at the COSCO Building in Beijing. Mr. Wei Jiahu congratulated the COSCO Shipyard Group and said that the COSCO Group should learn from the model events of the project team and win the battle to make profit in 2012.

In the afternoon. a video meeting was held in the COSCO

Group to reward the COSCO Shipyard Group for the work associated with the recent award for‘Design and manufacturing of deepwater high-stability cylindrical drilling platform’. Mr. Li Yunpeng, Vice President of the COSCO Group, presided over the meeting. Mr. Wei Jiafu and Mr. Ma Zehua, made a speech outlining the importance of the project and issued a certificate of achievement to Mr. Nitao, who represented the project team. Mr Nitao also gave a report at the meeting.

In November 2009, the COSCO Shipyard Group success fu l l y delivered the first ultra deepwater cylindrical drilling platform, named ‘Sevan Drillier’, built by COSCO

Nantong Shipyard. By doing so, the company developed its own intellectual property in the field of deepwater high-stability cylindrical drilling platforms. The yard has 4 effective orders, which have a building price of $570m apiece, and the work represents a 100% market share.

During the past few years, in addit ion to ‘Sevan Dri l ler ’, the COSCO Shipyard Group has also successfully designed and constructed the semi-submersible drilling platform GM4000, Octabuoy - the octagonal semi-submersible drilling unit; the Super M2 elevating support vessel (ESV)- a Wind Turbine Installation Vessel; a 59k Shuttle Tanker and a 105K Shuttle

Tanker, encompassing shallow and deep sea, offshore oil and gas platforms and special engineering markets. The Dalian Developer Drillship currently under construction also breaks the world monopoly of the established international designer and constructors of drill ships and has filled a blank in the national portfolio.

The ‘Design and Manufacturing o f Deepwate r H igh-s tab i l i t y Cylindrical Drilling Platform’ project breaks through traditional design and realizes the integration of drilling and storage. The COSCO Shipyard Group can now claim the widest range of experience among national enterprises designing and constructing offshore facilities.

DVB Bank visits

On the 19 th January, COSCO Shipyard Group held its Spring Festival Party 2012 at the Dalian Development Area Grand Theater. Leaders from the COSCO Shipyard Group attended the party and over 1,100 audience members from COSCO Dalian Shipyard watched the performances. During the party, 12 colorful programs from daughter yards of the COSCO Shipyard Group were presented on the theme of “Creating the Future”.

Newbuilding2

57,000DWT BULK CARRIER

92,500DWT BULK CARRIER 35,000DWTBULK CARRIER

N217 sea trials

N218 whole ship launching

Delivery of Port Hainan

N254 steel cuttingCOSCO Guangdong passes CCS audits

On 13th Feb, N217, the first 57000DWT bulk carr ier, bui l t for the German Owner CONTI Shipping, successfully completed

sea trials and returned to COSCO Nantong Shipyard. During the sea trials, the vessel conducted and finished ME remote control tests,

‘engine room unmanned’ control tests and all the other necessary production tasks smoothly.

On January 19th, following the successful naming ceremony o f N299, the “who le sh ip” launching of another 57000DWT bulk carrier, N218, being built for German owner CONTI Shipping, was successfully completed, making a good beginning for

ship construction in 2012. Before the launching, the shipyard had organized Production, Safety and other departments to conclude correction projects one by one, which paved the way for a smooth launch.

On 22nd Feb. the 57000DWT bulk carrier N171 “Port Hainan”, built for the Portline company by COSCO Zhoushan Shipyard, was successfully delivered. Dr. David Malkoff, the ship owner’s lawyer, Mr. Antonio Gracia, the on-site supervision manager, and Mr. Dong Yezong, the G.M. of COSCO Zhoushan Shipyard, attended the delivery ceremony.

The vessel measures 189.99 meters in length, 32.26 meters in depth and has a scantling draft of 12.8 meters. Its voyage speed is

14.2 knots while the endurance is 18000 nautical miles. “Port Hainan” is equipped with a Mewis Duct and PBCF facility and is expected to save 2 tons of oil per day compared with “Port Dalian”, another vessel built for the company in January.

The ship owner fully affirmed that COSCO Zhoushan Shipyard ha s bu i l t “ Po r t Ha i n an ” on time and with high quality and confirmed that Portline will further develop their cooperation with the Zhoushan yard.

The s tee l cutt ing for the 925000DWT bulk carrier (N254) commenced on 10th Feb in COSCO

Dalian Shipyard. The ship owner, representatives of class society and yard leaders jointed the ceremony.

N352 keel layingThe keel laying ceremony

of N352, the first 35000DWT bulk carrier being built by COSCO Guangdong Shipyard.f o r G r e eK owne r SEMIH SOHTORIK MANAGEMENT & AGENCY INC, was held in on January 18th, The ship owner, ship surveyor and shipyard co-witnessed the moment. The compnay’s two other ships move on smoothly in the yard.

S E M I H S O H T O R I K MANAGEMENT & AGENCY INC, is a family firm, and now it is operated by the fourth generation.

From 13th to 16th Feb, COSCO Guangdong Shipyard was anticipating the approval of the CCS audit for its al l-round process management system. The system met all the requirements and was approved. Passing the audits confirmed the success o f the COSCO Guangdong Shipyard all-round

process management system.Meanwhile, according to

problems found during the audit, COSCO Guangdong Shipyard adopted addit ional internal technical audit and monthly audit methods as means of managing and effectively promoting its lean management.

Offshore 3

T-15 DRILLIng TEnDER

ULTRA-DEEpWATER CyLInDRICAL DRILLIng UnIT

SEVAN BRASIL completes sea trails

N390 launching

Offshore R&D Center awarded ‘Eleventh Five-Year Plan’ Excellent Enterprise Technique Center

Digital books for young staff

On the 5th of February, the ultra-deepwater cylindrical drill ing unit “SEVAN BRASIL”, b u i l t b y C O S C O N a n t o n g Shipyard, completed its seven-day sea trails and returned to the

shipyard.During the sea tr ial , the

trial crew made joint efforts to complete Speed tests, Dynamic Positioning Class III (DP-3) tests, Failure Modes and Effect Analysis

(FMEA) tests and other tests. All the test data met the design requirements and the results were highly praised by both the ship owner and ship surveyor.

On 8th, February, COSCO Nantong Shipyard held a launching ceremony for the T-15 Drilling Tender project (N390). The

tender barge, being built for the Seadrill Company, was successfully launched by the semi-submersible barge “YUANTONG 8”. The block

assembly and hoisting of the living quarters block and installation of other systems will be carried out after the launching.

Recen t l y, J i angsu Economic and Information Technology Commission awa rd e d t h e COS CO Shipyard Offshore R&D Center the “E leventh Five-Year Plan Excellent Enterpr i se Techn ique C e n t e r ” o f J i a n g s u province.

On 9th Feb, a ceremony of “Millions of digital books for young staff” was held in COSCO Qidong Shipyard. Over the next couple of months, thousands of digital books are being made available to young staff, including sub-contractor staff.

Reading by handphone is an important way to develop and practice staff training systems, which can both enhance leisure life and encourage practice of a low-carbon lifestyle.

Offshore technique wins “Nantong Science and Technology Progress Outstanding Awards 2011”

At the 2011 Technical Progress Award Conference held by Nantong Government, the “Technique of the new generation of self-elevating windmill turbine vessel” toped the list of 173 technical awards at the “Nantong Science and Technology Progress Outstanding Awards 2011”.

The COSCO Shipyard Group

has successfully delivered a series of wind turbine installation vessels. The independent research not only conformed to the national requirements for new energy development strategy but also promoted our ability to produce products for the Chinese offshore manufacturing industry.

Ship Repair & Conversion4

Efficient repair of backhoe dredger “Min Long”

Efi Theo departed ahead of schedule

Top Technology, Top Services

Lantern Festival celebration party

“Min Long” is a backhoe dredger owned by Guangzhou Dredging Co., Ltd, and was recently docked and repaired at COSCO Lianyungang Shipyard.

The major work carried out was as follows: Docking services, including shell plate and deck bridge inner area blasting and painting, removal ashore of the main and slave positioning posts (Dia1.2m×Length36.5m, Weight 40,850kgs) and renewal of 150

pieces of inner plate, removal ashore of the dredging cutter head and repair by building up with wear-resistant material, the overhaul of the crane gear boxes and the renewal of three associated diesel engines via owner supply, repair of various pumps and extensive automation work.

The owners were so satisfied with the shipyard’s engineering and work performance that they

decided to award more projects to the shipyard in 2012 and onwards.

COSCO Lianyungang Shipyard is taking on more and more challenging projects, including supply vessels, dredging vessels, cable layers, pipe layers, tugs, heavy floating cranes and floating accommodation, and is aiming to become the Chinese shipyard of choice for high tech marine and offshore conversions, upgrades and repair projects.

MV EFI THEO arr ived in COSCO Nantong on January 19th to be repaired for Evripos Shipmangement Inc. The main project included a routine docking repair, sand blasting of cargo holds, steel plate renewal and mechanical work.

This year, January 23rd was the date of the most important annua l fes t iva l for Ch inese people -- Chinese New Year: a long-awaited reunion, a critical

moment. According to Chinese tradition, workers begin to return home for the Spring Festival more than half a month before Chinese New Year. Unfortunately, COSCO Nantong Shipyard was especially busy during the Spring Festival this year, with ship repair volume reaching saturation and a consequential labor shortage. In order to ensure the ship repair was completed on time, workers gave up their precious family

vacation and the shipyard also transferred laborers from COSCO Qidong (which is principally an offshore new building construction base). The team worked day and night to ensure the urgent task was completed.

Finally, the repair of MV Efi Theo was completed successfully on February 16th, and the vessel departed ahead of schedule. The ship owner was very satisfied with our tremendous effort.

Fo l l ow ing a mon th ’s fu l l contribution and cooperation on the Container Vessel MSC Eugenia, the project team was looking forward to the dawn of victory. However the superintendent, Mr. Sanjay, was upset because of the damaged No.1 auxiliary engine. A second-hand auxillary engine casing was being sent from Europe. Once the engine overhaul had been completed and the discarded casing shifted ashore, nothing further could be done except wait for the replacement casing to arrive.

One day passed, no result appeared. Two days passed, no information was received. After ten days the yard was informed that the spare casing would not be in Nantong until 19th, January. Finally, the treasure arrived in the yard on 20th. Upon checking the condition of the casing, everybody was dumbfounded; it had not been overhauled. The casing had to be overhauled and then reassembled b y t h e y a r d , u s i n g p a r t s cannibalized from both engines,

and the Chinese traditional spring festival was only two days away. Mr. Sanjay was very concerned about the situation as he realized that, during the holidays, the supply of technical laborers would become the biggest challenge and he worried about when the job would finally be completed. On 21st, 8 people spent a full day working on the engine. On 22nd, the most important day of the holiday, the same 8 people worked on the engine: The job was not affected by the holiday at all. 5 days later, the engine was fitted in position and was ready for test.

“If I had not been there the whole time, I would not believe it could have happened” said Mr. Sanjay merrily. “Now my company will be in trouble again because they are not ready to receive the vessel. This story proves that choosing COSCO was the correct choice. COSCO is at the top level for all clients. You have provided us with advanced, innovative technology and the best possible service.”

The Chinese Lantern Festival is held on the 15th day of the 1st lunar month. The first lunar month i s ca l led yuan-month and in the ancient times people called this night Xiao. The 15th day is the first night a full moon can be seen, so the day is also called Yuan Xiao Festival in China. According to Chinese tradition, at the very beginning of a new year, when there is a bright full moon hanging in the sky, there should be thousands of colorful lanterns hung out for people to appreciate. At this time, people will try to solve the puzzles on the lanterns, eat yuanxiao (glutinous rice ball) and get all their families united in the

joyful atmosphere.W h e n t h e f e s t i v a l w a s

approaching, COSCO Shipyard Group hosted riddle-solving parties and created an atmosphere of peace and happiness. In the act iv i ty center of the COSCO Shipyard Group, rows and rows of colorful lanterns were shining and made the activity center a sea of joy and happiness. Two riddle-solving parties were held simultaneously at COSCO Nantong Shipyard and COSCO Qidong Shipyard and attracted more than 600 people to enjoy the amazing parties and made the the participants feel at home.

Eurotankers Inc. returns for Eurosea drydocking repairT h e 9 6 7 5 5 D W T t a n k e r

Eurosea, managed by Eurotankers I n c ., c a l l e d i n f o r r ou t i ne drydocking repairs during the Chinese spring festival. It was the second Eurotankers Inc. vessel to come to COSCO Guangdong Shipyard for repairs. Because of the successful repair, a third vessel ( involv ing more than 1000 tons steel work) is already confirmed to the shipyard.

During this repair call the major work scope included the

following areas: main deck re-plating, hull grit blasting, water ballast tanks hydro-blasting, overhaul of M/E turbo chargers, and renewal works on all coolers, valves and pipes. Boiler cleaning & mounting valves overhaul and life boat, davit & safety equipment servicing & repairs were also carried out, along with electrical motors overhaul, cargo oil tank heating coils renewal work and other work. The work was carried out under supervision

of the technical director, Mr. Ko s m a s Ko u r o u m p a s , a n d the attending superintendent, Mr. Evangelos Skal id is . The classification society Det Norske Veritas requirements were also met during the contract.

OBO Maud repaired in COSCO LianyungangOBO Maud, managed by

Goodwood Ship Management Pte Ltd., was docked and repaired at COSCO Lianyungang Shipyard in the past few monthes.

Major work was accomplished as follows: All 9 cargo holds were blasted and coated with full staging erected; 70 tonnes of steel was renewed in various locations; all 18 hatch panels covers were removed ashore for repair; extensive machinery repairs were completed, including inert gas and cargo holds control system rectification and repairs,

hatch cover hydraulic cylinders and various pump overhauled; and docking services, including hull full blasting to Sa.2 and coating.

The whole of the contracted workscope was accomplished on- schedule with a high standard of quality.The attending Technical Manager, Mr. Vilas Tole, and the vessel’s owner’s attending representative were very satisfied and impressed.

The Technical Manager Mr. Vilas Tole expressed his wish to extend the excellent relations

with the shipyard on a long-term basis and confirmed that his first priority was to award his forthcoming third OBO vessel in due time in 2012.

Through these successful repairs, COSCO Lianyungang Shipyard has certainly extended its rich experience with OBO vessel repairs.