Keppel Scores S$100 Million Upgrade and Repair Projects

Keppel Offshore & Marine Ltd., through its wholly-owned subsidiaries, Keppel FELS and Keppel Verolme, has secured upgrade and repair contracts totaling about S$100million from repeat customers.

Keppel FELS in Singapore will be undertaking the upgrade and modification of a semisubmersible (semi) for Ensco while Keppel Verolme will be upgrading a jackup rig for Rowan and repairing a semi for Saipem.

Chow Yew Yuen, Chief Operating Officer and CEO-Designate of Keppel O&M said, “Besides newbuidling projects, our yards are constantly kept busy with repairs and upgrades as well. The work is complementary and we are pleased to be able to regularly service our long-standing customers like Ensco, Rowan and Saipem. Repair and modification projects usually require quick turnovers and we have the expertise, versatility and capacity to undertake a variety of work for a wide range of rigs. In addition, our global network of yards enables us to meet the needs of our international clientele wherever they are.”

In Singapore, Keppel FELS will be undertaking the upgrade of the semi ENSCO 5005. Work on the semi includes upgrading major systems, machinery spaces, drill floor, derrick and living quarters as well as the renewal of steel and piping systems. The entire semi and its tanks will also be painted. The project is scheduled for completion in 1Q 2014.

In the Netherlands, Keppel Verolme is conducting a special periodic survey (SPS) on the jackup rig, Rowan Gorilla VI, for Rowan Drilling. This includes painting of the hull, inspection of spud cans, renewal of anodes and installation of dock plugs among other things. The rig will also have its drilling equipment upgraded and is expected to be delivered by 4Q 2013.

Keppel Verolme is also completing a full SPS program for Saipem on the semi Scarabeo 5. The yard’s scope of work comprises the overhaul of the thrusters, all anchor winches, top drive upgrade and various modification and repairs. Scarabeo 5 is scheduled for delivery in September 2013.

The above contracts are not expected to have a material impact on the net tangible assets and earnings per share of Keppel Corporation for the current financial year, the company said.

keppelfels.com