18 Sep 2013

Keppel secures two FPSO contracts worth S$190 million

Keppel Shipyard Ltd (Keppel Shipyard) has secured two Floating Production Storage and Offloading (FPSO) conversion contracts from repeat customers worth a combined value of S$190 million. These contracts are from SBM Offshore N.V. (SBM Offshore) and M3nergy Offshore Limited (M3nergy Offshore).

Mr Michael Chia, Managing Director (Marine & Technology), Keppel Offshore & Marine (Keppel O&M), said, "The award of these contracts from our repeat customers affirms their confidence in us. These contracts from experienced FPSO fleet owners and operators SBM Offshore and M3nergy bear testament to our commitment to quality conversion and upgrading services.

"Over the years, Keppel Shipyard has worked closely with customers worldwide to bring to the market a range of offshore production solutions. We will continue to ensure the success of our latest FPSO projects to value-add to the global offshore production market."

Keppel Shipyard's new conversion project for SBM Offshore is for the FPSO that will host the Stones ultra deepwater development by Shell in the Gulf of Mexico. Once installed, the vessel will be the deepest production facility in the world, as well as the deepest FPSO with a disconnectable buoy (Buoyant Turret Mooring or BTM).

The yard's work scope for the Stones project includes refurbishment and life extension works; upgrading of living quarters; fabrication and installation of the internal disconnectable buoy BTM system and topside module supports; as well as the installation and integration of topside modules.

The FPSO design has a processing facility capacity of 60,000 barrels of oil per day (bopd) and 15 mmscfd of gas treatment and export. The converted FPSO will be able to store 800,000 barrels of crude oil and its total topsides weight will reach 7,000 tonnes.

Including the Stones FPSO, Keppel Shipyard has undertaken 20 major projects for SBM Offshore since 2000.

Meanwhile, Keppel Shipyard's second contract is from M3nergy Offshore to convert an FPSO for the Bukit Tua Field.

For this project, Keppel Shipyard will undertake refurbishment and life extension works; fabrication and installation of new structures, piping systems, spread-mooring system; upgrading of the living quarters; as well as the installation and integration of the topsides process modules.

Scheduled for completion in the second quarter of 2014, the FPSO has been chartered by PC Ketapang II Ltd for its operations in the Bukit Tua field, which is 35 kilometres north of Madura Island, offshore Indonesia.

The FPSO conversion contract for the Bukit Tua field in Ketapang Block, Indonesia, was awarded to the consortium PT Trasamudra Usaha Sejahtera - M3nergy Offshore Ltd. M3nergy Offshore is a subsidiary of M3nergy Berhad.

The FPSO will have a production capacity of up to 25,000 barrels per day of liquids and a storage capacity of up to 630,000 barrels.

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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About Keppel Shipyard
Keppel Shipyard Ltd (Keppel Shipyard) is the trusted industry name for the repair, conversion and upgrading of a diverse range of vessels. It is a leader in the conversion of Floating Production Storage and Offloading (FPSO), Floating Storage and Offloading (FSO) and Floating Storage and Re-gasification Units (FSRU).

Keppel Shipyard is a subsidiary of Keppel Offshore & Marine (Keppel O&M), a wholly-owned company of Keppel Corporation. As a group, Keppel O&M is a global leader in offshore rig design, construction and repair, ship repair 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, Keppel O&M aims to be the provider of choice and partner for solutions for the offshore and marine industry.

About M3nergy Offshore
M3nergy Offshore Limited is a subsidiary to M3nergy Berhad, an integrated service provider with more than 15 years of experience in marginal field development utilising innovative floating solutions (FPSO, FSO, MOPU, FSRU) together with its own extensive operations and maintenance resources.

About SBM Offshore
SBM Offshore N.V. is a listed holding company that is headquartered in Schiedam. It holds direct and indirect interests in other companies that collectively with SBM Offshore N.V. form the SBM Offshore group ("the Company").

SBM Offshore provides floating production solutions to the offshore energy industry, over the full product life-cycle. The Company is market leading in leased floating production systems with multiple units currently in operation, and has unrivalled operational experience in this field. The Company's main activities are the design, supply, installation and operation of Floating Production, Storage and Offloading (FPSO) vessels. These are either owned and operated by SBM Offshore and leased to its clients or supplied on a turnkey sale basis.

Group companies employ over 7,400 people worldwide, who are spread over five execution centers, eleven operational shore bases, several construction yards and the offshore fleet of vessels. For more information, visit: www.sbmoffshore.com

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