Keppel – 4 Contracts Worth $222.5m

Keppel Offshore & Marine has secured $222.5m dollars worth of contracts through its subsidiaries for the conversion of a floating storage and offloading vessel (FSO), the construction of an internal turret, the refurbishment and outfitting of a semi-submersible multi-service vessel as well as the fabrication, installation and integration of topside process modules for a Floating Production Storage and Offloading vessel (FPSO).

The first contract is for the conversion of a FSO by Keppel Shipyard for M3nergy JDA Sdn Bhd.

The scope of work includes the repair, life extension and conversion of a Panamax Tanker built in 1989, into a FSO which involves the fabrication and installation of an external turret mooring system, cargo offloading station, metering skid and helideck as well as the upgrading of accommodation, fire fighting system and communication systems.

When completed in third Quarter of 2009, the FSO will be able to store 546,000 barrels of oil with a maximum stabilised condensate production of 20,000 barrels per day. It will operate in the Joint Development Area (JDA) off the east coast of Peninsular Malaysia for Carigali-PTTEPI’s Block B-17 field development project.

The second contract by Keppel Shipyard is for the construction of an internal turret for SBM Offshore Inc, which will be supplied to their end client BP Norge AS, for its Skarv FPSO unit.

When completed, the internal turret will be the largest in the world in terms of its rated mooring loads. The Skarv FPSO unit will serve the Skarv Development offshore Norway.

Mr Nelson Yeo, Executive Director of Keppel Shipyard said, “These new contracts demonstrate the confidence our customers have in us. We continue to execute our projects successfully and to the owner’s satisfaction.”

The third contract is by Keppel Verolme BV (Keppel Verolme) for the refurbishment and outfitting works on a semi-submersible multi-service vessel for Prosafe Rigs Pte Limited, a wholly owned subsidiary of Prosafe SE.

Scheduled to arrive in the fourth quarter of 2008, the vessel, MSV Regalia, will undergo a refurbishment programme which includes part renewal of the accommodation, entertainment, catering, office and exercise facilities. She will also have her main engines renewed, her thrusters and dynamic positioning system refurbished, and her hull blasted and painted.

Harold Linssen, Managing Director of Keppel Verolme, said, “We are delighted Prosafe has chosen us for this project and we look forward to being their provider of choice in the region.”

The vessel is scheduled to be completed in the second quarter of 2009.

The fourth contract, for the fabrication, installation and integration of topside process modules for the FPSO P-57, has been secured by Keppel FELS Brasil from SBM Offshore.

The workscope includes fabrication and erection of Topsides Modules, piping, electrical equipment, instruments as well as pre-commissioning and assistance to commissioning. The modules are expected to be delivered in end 2009 with the commissioning and integration in the third quarter of 2010.

The upgrading and conversion of the FPSO P-57 is currently being undertaken by Keppel Shipyard for SBM Offshore and is expected to leave Keppel Shipyard in the fourth quarter of 2009 for Brazil.

Keppel Shipyard, Keppel Verolme and Keppel FELS Brasil are wholly owned subsidiaries of Keppel Corporation, through Keppel O&M, a leader in offshore rigs, ship repair and conversion and specialised shipbuilding.

The contracts are not expected to have material impact on the net tangible assets or earnings per share of Keppel Corporation for the financial year ending 31 December 2008.

(www.kepcorp.com)