19 Nov 2012

Keppel’s yard in Brazil receives US$2 million in bonuses for safe and early delivery of an FPSO

Keppel FELS Brasil S/A's (Keppel FELS Brasil) yard in Angra dos Reis, Rio de Janeiro, Brazil - BrasFELS - has delivered FPSO Cidade de Sao Paulo 19 days ahead of schedule and with an excellent safety record.

FPSO Cidade de Sao Paulo has a production capacity of 120,000 barrels of oil per day (bopd) and is able to compress 5 million cubic metres of gas per day.

It is the first of two Floating Production Storage and Offloading (FPSO) projects BrasFELS is undertaking for MODEC and Toyo Offshore Production Systems Pte Ltd (MTOPS), a joint venture between MODEC, Inc. (MODEC) and Toyo Engineering Corporation (TOYO).

For achieving an excellent safety performance throughout this two-year project, MTOPS awarded BrasFELS with a safety bonus in addition to an early delivery bonus.

Arriving at BrasFELS in 4Q 2011, FPSO Cidade de Sao Paulo will soon proceed to operate for Petróleo Brasileiro S.A. (Petrobras) and its partners in the pre-salt region of the Santos Basin.

BrasFELS' work scope for this FPSO project comprised the fabrication of riser manifolds, laydown areas and the flare tower as well as the assembly and integration on board the FPSO.

Mr Kwok Kai Choong, President and Chief Executive Officer of Keppel FELS Brasil, shared, "We appreciate our growing ties with MTOPS, MODEC and TOYO. The successful and early delivery of FPSO Cidade de Sao Paulo bears testament to the good teamwork and understanding between our companies and our ability to provide a high quality production vessel for Petrobras' operations. We are also thankful for these safety and early delivery bonuses, which are great encouragements to our efforts to ensure safe, prompt and high quality services for all our customers.

"As the most comprehensive yard in Latin America today, BrasFELS offers a full range of newbuild construction, conversion, upgrade, modification and repair services. We will continue to improve our infrastructure and capabilities to strengthen our strong track record for win-win-win collaborations - in other words, build mutually-satisfying partnerships between fleet operators, field operators and ourselves."

Mr Richard Matten, Project Manager of MODEC, noted, "We believe that working with established partners helps to ensure that our customers get their FPSO safely, on budget, to required quality level and on time to meet production targets. BrasFELS was our yard of choice for the FPSO Cidade de Sao Paulo project, and it did a remarkable job! BrasFELS worked very well with our project team to ensure the safe and prompt turnaround of this project.

"Presently, we are working with the yard on another project, FPSO Cidade de Mangaratiba. We are confident that this project too will be delivered to our highest satisfaction."

Scheduled to be delivered in 2014, FPSO Cidade de Mangaratiba will have a production capacity of 150,000 bopd and a storage capacity of 1,600,000 barrels of oil.

In August 2012, the yard secured two contracts from the Petrobras-led consortiums Guara B.V. and Tupi B.V. to fabricate and integrate the topside modules of FPSO P-66 and P-69 respectively.

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About Keppel FELS Brasil
Keppel FELS Brasil S/A is a wholly-owned subsidiary of Keppel Corporation Limited, through Keppel Offshore & Marine Ltd (Keppel O&M).

It operates BrasFELS yard in Angra dos Reis, which is the most comprehensive shipyard in Latin America. Established in 2000, the yard has delivered three mammoth floating production units, P-52, P-51 and P-56. It has also completed the conversion of the Floating Production Storage and Offloading (FPSO) unit P-48, and the fabrication and integration of FPSO P-57. The yard is presently undertaking the construction of the P-61 Tension Leg Wellhead Platform (TLWP) for the Papa-Terra field in Brazil's Campos Basin, the upgrading and lengthening of a drillship for Noble Corporation and the construction of a drilling semisubmersible, DSS^TM38E for Sete Brasil Participações S.A. (Sete Brasil). It will soon embark on the construction of five additional DSS^TM38E semisubmersible drilling rigs for Sete Brasil.

Keppel O&M is a leader in offshore rig design, repair and construction, ship repair and conversion, and specialised shipbuilding. The group's Near Market, Near Customer strategy is bolstered by a global network of 20 yards in the Asia Pacific, Gulf of Mexico, Brazil, the Caspian Sea, Middle East and the North Sea regions. Integrating the experience and expertise of its yards worldwide, the group aims to be the provider of choice and partner for solutions for the offshore and marine industry.

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