Keppel Offshore and Marine Units Win Contracts

Monday, August 26, 2002
Keppel Corporation Limited, through its offshore and marine units in Keppel Offshore & Marine Ltd (Keppel O&M), has clinched contracts worth a total of $41 million from repeat customers. Three contracts over $28 million are for the upgrades of jack-up rig Ensco 81 and barge drilling unit Ensco 1 from Ensco Offshore Company (ENSCO), and swamp barge Maera from PT Apexindo Pratama Duta, an Indonesian drilling contractor. Another contract is for a new Anchor Handling Tug/Supply (AHTS) vessel for Pacific Richfield Marine Pte Ltd, owner and operator of offshore support vessels in the Asia and Pacific region. Tong Chong Heong, Managing Director and Chief Operating Officer of Keppel O&M said, “Shipyards usually become involved in a job only after the design and engineering work is completed. However, we have in many instances successfully convinced our customers to involve our design and engineering teams as partners in the initial stages of their projects. “This business model has worked for our customers and us. Together, we could come out with better solutions, turnaround their projects quickly, and deliver them within their budget and to the desired quality.” The drilling capability upgrade on Ensco 81 will be carried out in AMFELS Inc, Keppel’s yard in Brownsville, Texas and is expected to be completed by January 2003. Work on Ensco 1 is undertaken by Keppel FELS’ in Singapore and involves the construction and installation of an auxiliary support barge onto the drilling unit. Ensco 1 is scheduled for delivery in December 2002. ENSCO has been a long-time customer, for whom Keppel has built two jack-ups and carried out numerous repairs and upgrades. This year alone, four rigs from ENSCO were repaired in Keppel FELS Pioneer Yard. Meanwhile, PT Apexindo’s swamp barge Maera will undergo a six-month refurbishment in Keppel FELS. This contract came hot on the heels of an earlier $16 million contract from the same client in April this year, to build a swamp barge, Raisa. PT Apexindo awarded Keppel with the Raisa contract as a result of its competitive bid and reputed quality services. Both barges will be contracted to TotalFinaElf upon completion of the projects. Keppel Singmarine, the specialized newbuilding arm of Keppel O&M will build the 140-ton bollard pull purpose-built Anchor Handling Tug/Supply vessel for Pacific Richfield Marine. Measuring 246 ft. (75m) in length and 56 ft. (17m) in breadth, the vessel will be used to tow, support and provide services for offshore drilling and work-over rigs. It is scheduled for delivery in the last quarter of 2003.
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