Keppel Corp. Units Win $46M in Contracts

Keppel Corporation Limited, through its subsidiaries, wpm contracts worth a total of $46 million from repeat customers. The $23 million contracts for the upgrading and repair of jack-ups, Ensco 51 and Ensco 54 are from ENSCO Offshore Company (ENSCO), with whom Keppel has built two jack-ups in the last four years and carried out numerous repairs. The other $16 million contracts come from Keppel’s subsidiary in Brazil, FELS Setal, and the remaining from a contract to build an Anchor Handling Tug Supply (AHTS) boat in Singapore for a Middle-Eastern client. Mr Choo Chiau Beng, Executive Director of Keppel Corporation, said, “We have Master Agreements with ENSCO for repairs and new construction. This demonstration of their confidence in us is a result of our ability to respond swiftly to their needs and to help them solve complex problems in good time. “In the drilling industry where day rate is between $30,000 and $200,000 depending on the environment in which they operate, it is understandable why rig operators want shipyards to turnaround their projects quickly.” The Master Vessel Modification and Repair Agreement and Vessel Construction Agreement with ENSCO encompass standard terms and conditions for any modification and repair or construction contracts between the two companies. ENSCO is one of the leading offshore oil and gas drilling contractors in the world. Work on Ensco 51 is expected to be completed by November 2002, while Ensco 54 will take two months. Both vessels are repaired in Singapore and will be re-deployed in the Asia Pacific region. Meanwhile, FELS Setal’s contracts involve the repair of jack-up P-VI and semi-submersible P-XVII belonging to the Brazilian State oil company, Petrobras SA and the design, engineering, procurement, construction and delivery of two gas compression modules for Dresser Rand. The contract for the construction of the AHTS, a specialized vessel, is a repeat order from Hadi H Al-Hammam Establishment (HHE) of Saudi Arabia, immediately following the delivery of the first AHTS vessel which was completed one month ahead of schedule. This 70-ton bollard pull purpose-built vessel for offshore support, is scheduled for completion in the first quarter of 2003. Measuring 60m in length and 16m in breath, the vessel will tow, support and act in the capacity of a safety vessel for offshore drilling and workover rigs.