04 Aug 2011

Keppel secures contracts worth S$146 million

Keppel Shipyard Ltd (Keppel Shipyard) has secured two contracts worth a total of S$146 million to convert a Floating Production Storage and Offloading (FPSO) unit as well as to fabricate and integrate an external turret mooring system for an existing FPSO unit.

The first contract is from Single Buoy Moorings Inc (SBM) for the conversion of the Very Large Crude Carrier (VLCC) M/T Concorde Spirit into a FPSO facility, to be named FPSO OSX-2. SBM had been engaged by OSX Brasil S.A. (OSX) to supply the FPSO, which is expected to be completed in the second quarter of 2013 and will be deployed in the OGX Petroleo e Gas Participacoes S.A. (OGX) field in Campos Basin, offshore Brazil.

Keppel Shipyard's work scope on FPSO OSX-2 comprises refurbishment and life extension works, accommodation block extensions for 80 personnel, a new flare tower, a new internal turret mooring system and topside module supports, as well as the installation and integration of topside modules. Work on the vessel is expected to commence in September 2011.

Mr Tony Mace, Chief Executive Officer of SBM Offshore said "Since 2001, Keppel has been our preferred partner and we are pleased to award another FPSO conversion to them. I look forward to continue with this partnership as we build up our FPSO fleet."

Mr Nelson Yeo, Managing Director of Keppel Shipyard, said, "We are glad for another opportunity to collaborate with our long-time customer SBM and to support OSX. Committed to safe and value-added services, we will work closely with all stakeholders of FPSO OSX-2 towards a successful conversion project."

Other ongoing projects between Keppel Shipyard and SBM include the fast-track modification and upgrading of the FPSO Cidade de Anchieta and the conversion of the FPSO Cidade de Paraty, which will subsequently proceed to Keppel FELS Brasil's BrasFELS for installation and integration of topsides. Keppel Shipyard is also undertaking modification and upgrading work on OSX's first vessel, FPSO OSX-1.

Keppel Shipyard's second contract is for the fast-track fabrication and integration of an external turret mooring system for Rubicon Offshore International Pte Ltd (Rubicon Offshore).

FPSO Rubicon Intrepid is currently engaged in the production of Galoc Field, west of Palawan Island, the Philippines. Fabrication of the turret is expected to be completed and integrated to the FPSO in the fourth quarter of this year.

The above contracts are not expected to have any material impact on the net tangible assets and earnings per share of Keppel Corporation Limited for the current financial year.

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For more information, please contact:

Media

Eva Ho
Deputy General Manager
Group Corporate Communications
Keppel Corporation Limited
Tel: (65) 6413 6424
Email: eva.ho@kepcorp.com

Investors Relations

Chua Ying Ying
Assistant General Manager
Group Corporate Communications
Keppel Corporation Limited
Tel: (65) 6413 6295
Email: yingying.chua@kepcorp.com

About Keppel Shipyard

Keppel Shipyard is a subsidiary of Keppel Offshore & Marine Ltd (Keppel O&M), a wholly-owned company of Keppel Corporation Limited. Keppel O&M is a leader in offshore rig design, repair and construction, shiprepair and conversion and specialised shipbuilding. Its 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.

About SBM Offshore

Single Buoy Moorings Inc (SBM) is a full subsidiary company of Dutch limited liability company SBM Offshore N.V., the holding company of a group of international, marine technology orientated companies. Its business is to serve on a global basis the offshore oil and gas industry by supplying engineered products, vessels and systems, and offshore oil and gas production services. Its product line is the supply of facilities and services for the development and production of offshore oil and gas fields as well as the systems relevant to the mooring technology at large. SBM Offshore also owns and operates the Company's lease units. The SBM Offshore provides engineering, project management and fleet operations and coordinates product technology development, marketing and project execution of the Group's activities. The organisation also includes the business units SBM Production Contractors for operation of the lease fleet, SBM Offshore Services for after sales services and offshore contracting and SBM Gas & Power for offshore technology applications in the LPG and LNG industry.

About OSX

The FPSO OSX-2 will join the offshore production fleet owned and operated by OSX Brasil S.A. (Bovespa: OSXB3), a Brazilian publicly held corporation focused in the supply of equipment and services to the Brazilian offshore oil and gas industry. OSX is developing the largest shipyard in the Americas and has an estimated order book of 48 offshore production units, amounting to US$30 billion approximately, to serve the production demand of its client and sister company OGX Petroleo e Gas Participacoes S.A. (OGX), responsible for the largest private-sector exploratory campaign in Brazil.

About Rubicon Offshore

Rubicon Offshore International Pte Ltd (Rubicon Offshore) is owned and operated by experienced professionals with broad field development, drilling, production and offshore installation backgrounds. Rubicon Offshore specialises in providing clients with unique, service-oriented solutions for the development and production of oil and gas fields in shallow and deep water environments.

The company's range of field development services is supported by a highly experienced and diverse team of in-house technical and operations professionals, who understand the task, know the solution and are able to quickly deliver robust, innovative and cost effective field developments for its clients.