Fels Setal Sa News

The consortium of FELS Setal SA, a subsidiary of Keppel Offshore & Marine Ltd (Keppel O&M) in Brazil, and Technip Engenharia S/A (Technip), an affiliate of Technip S.A., has been awarded the P-52 contract from Petrobras Netherlands BV (PNBV). The signing ceremony of the US$775 million contract to build the semi-submersible production platform was witnessed by Brazil’s President Luiz Inácio Lula da Silva in the presence of more than 1000 guests at FELS Setal’s Brasfels Yard. Delivery of the floating production unit is due in 41 months for possible deployment in the Roncador field, a deepwater location of the Campos Basin, off the north coast of the State of Rio de Janeiro, Brazil.

The consortium of FELS Setal SA, a subsidiary of Keppel Offshore & Marine Ltd (Keppel O&M) in Brazil, and Technip Engenharia S/A (Technip), an affiliate of Technip S.A., has been awarded the P-52 contract from Petrobras Netherlands BV (PNBV). Recently signed was a$775 million contract to build the semi-submersible production platform. Delivery of the floating production unit is due in 41 months for possible deployment in the Roncador field, a deepwater location of the Campos Basin, off the north coast of the State of Rio de Janeiro, Brazil. The project involves the detailed engineering, procurement and construction of an 180,000 bpd semi-submersible production platform capable of operating in water depths up to 1,800 m.

In working on what is claimed to be the largest and most complex offshore conversion project undertaken to date in Brazil, the conversion of the FPSO P-48 (formerly the VLCC Stena Concordia), FELS Setal SA, the Brazilian subsidiary of Singapore’s Keppel Offshore & Marine, has achieved five million work hours without a Lost time Incident. US-based Kellogg Brown & Root’s subsidiary Halliburton Produtos Ltda awarded FELS Setal the contract for the marine conversion of the FPSO in February 2001. When completed P-48 will have an oil processing capacity of 150,000 bbl per day, and will be deployed with Petrobras in the Caratinga filed in the Campos Basin, offshore Brazil.

What About Cuba? Political allegiance notwithstanding, continuing unrest and war in the energy critical Middle East continues to wreak havoc with world oil prices, with consumers around the world struggling to keep up with fast escalating gasoline prices. While (at press time) the benchmark prices for a barrel of crude have settled just under $40, the situation has spurred new exploration and production ventures, one such speculation in the Gulf of Mexico off of Cuba. According to a recent report in The Economist (June 5, 2004 edition, page 48), Spain's Repsol has moved into position a Deep Water drilling rig off of the country's northwest coast with the intention of drilling two wildcat wells in what could amount to a successful attempt to energize a failing economy.

Keppel FELS Limited (KFELS), the offshore arm of the Keppel Group, through its subsidiary in Brazil, FELS Setal SA, has signed two contracts worth a total of $104 million. These jobs bring FELS Setal’s total contracts secured to $250 million since its incorporation 18 months ago. The first job clinched is the $90 million contract for three Anchor Handling Tugs / Supply vessels (AHTS) for Delba Maritima, a Brazilian offshore vessel operator. This follows the Letter of Intent recently announced on October 30, 2001. In February 2001, Halliburton awarded FELS Setal a $75 million contract for the marine conversion of VLCC Stena Concordia to an FPSO to be renamed P-48.For the building of the AHTS…

Halliburton Productos Ltd. Production Storage and Offloading facility (FPSO). This contract, once it is finalised, will be a major step for FELS Setal, as the last time any work of this magnitude was performed in Brazil was over four years ago. It is expected to re-vitalise the offshore and marine fabrication industry in Brazil, with projections to create thousands of new jobs for the state of Rio de Janeiro. Brazilian PEM Setal respectively. It is operating from a 360,000 sq. Angra dos Reis, about two hours south of Rio de Janeiro. deployment in deep waters of the North Sea, Gulf of Mexico and Southeast Asia. subsidiary, AMFELS secured a $76 million rig order from Chiles Offshore. Sedco Forex.

Keppel Offshore & Marine Ltd (Keppel O&M), the wholly owned subsidiary of Keppel Corporation Limited, has acquired from the PEM Setal Group the latter’s entire 17.25% interest in FELS Setal S.A. The cash consideration for the purchase is US$5 million. This was arrived at on a willing buyer and willing seller basis taking into account the net assets of the company and existing contracts. With the acquisition, FELS Setal will become a wholly owned subsidiary of Keppel O&M, and will be renamed Keppel FELS Brazil SA. The sale by PEM Setal is due to PEM Setal’s restructuring programme for its group of companies. Keppel O&M is a global leader in offshore rigs and ship conversion and repair as well as a specialised shipbuilder.

As ship and boatyards in the Gulf of Mexico eagerly await 'Offshore Boom 2001,' it might behoove them to look at activities transpiring outside of their own backyard, as the business of building offshore rigs and vessels has truly become a global bonanza. For example, down south, way down south in Brazil, FELS Setal SA has become that country's preferred shipyard for offshore and marine services on account of its quality workmanship and on-time deliveries, after just one year of its formation. The 60/40 joint venture company between Keppel FELS Energy & Infrastructure Ltd. (Keppel FELS) of Singapore and the PEM Setal Group of Brazil has won a total of $120 million worth of contracts in this short time.