Keppel to Convert the FDPSO

Keppel Shipyard will convert a Very Large Crude Carrier (VLCC) size tanker into an FDPSO constructed with a moonpool used for drilling purposes. It will have the drilling package modules and derrick integrated into the FDPSO. The provision of the drilling packages will be by Prosafe’s client. Work on the vessel is expected to be completed by late 2008.

When completed, the FDPSO will have an oil storage capacity of about 1,300,000 bbls. Its gas compression capacity will be 18 MMscfd and its production capacity will be 40,000 bopd. Prosafe, the wholly owned Singapore unit for Prosafe SE, is a major owner and operator of FPSO and FSO facilities worldwide.

The contract is 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 2007.