Mr Lee Yi Shyan at the Groundbreaking of Toll Offshore Petroleum Services’ Offshore Base

SPEECH BY MR LEE YI SHYAN MINISTER OF STATE FOR TRADE & INDUSTRY AT THE GROUNDBREAKING OF TOLL OFFSHORE PETROLEUM SERVICES’ OFFSHORE BASEON 29 SEPT 2008, 11:00AM AT LOYANG CRESCENT

Mr Paul Little, Managing Director of Toll Holdings Limited,

Distinguished Guests,

Ladies and Gentlemen,

Introduction

Good morning. I am happy to be here today for the groundbreaking of Toll Offshore Petroleum Services’ Loyang Supply Base.

The redevelopment of this base affirms the significance of Singapore’s oil and gas industry, and the depth and breadth of our marine and offshore capabilities.

Vibrant Marine & Offshore Industry

Riding on the strong growth of the offshore oil and gas sector, our marine and offshore industry has, in recent years, recorded impressive performances. Last year, the sector achieved an output of S$13 billion, a substantial 27 per cent growth over 2006.

Today, besides being one of the world’s premier ship repair and ship conversion centers, Singapore is also a global leader in the building of jack-up rigs and the conversion of FPSO (Floating Production Storage and Offloading Platforms) units. We are also the largest manufacturer of offshore oil rigs, with a 70 per cent market share. Besides the new builds, rigs frequently return to Singapore for maintenance and repair.

The outlook for the industry remains positive as the growth of the offshore oil and gas sector is likely to continue for the next few years. Singapore hopes to build on this growth momentum to consolidate further as an integrated marine and offshore hub. We want to work with our world class shipyards, companies offering complex oil and gas systems, and offshore-related services to build new capabilities. We would like to encourage them to undertake a wider range of activities, encompassing manufacturing, headquarter services, training, research and development, engineering, and regional distribution.

TOPS’ Loyang Supply base embodies what we envision for this sector – a one-stop, world class location, offering comprehensive, project-critical services and products. Toll is particularly well-suited to spearhead this project due to your global network of bases. Users of the base will be able to compete more effectively, making use of the extended logistics support that Toll Group offers.

Intensifying land use

The rapid growth of the marine and offshore industry in recent years has resulted in a high demand for resources. Toll Group’s development of this base will result in increased land productivity, and enable more companies to utilize the waterfront for project mobilization.

The redevelopment of the base is a massive undertaking. As Mr Paul Little mentioned, it will take up to five years and the efforts of many parties. However, when the redevelopment is completed, we will see a world class oil and gas supply base before us. Singapore's position as one of the oil and gas centers of the world, next to Houston and Aberdeen, will be further enhanced.

Conclusion

Finally, let me congratulate the management and staff on undertaking this milestone development. We are proud of our association with Toll Offshore Petroleum Services, and wish you every success going forward.

Thank you.