29 Jun 2011

Keppel clinches Brazilian shipbuilding contracts worth S$140 million

Keppel Singmarine Brasil (KSM Brasil), Keppel Offshore & Marine Ltd (Keppel O&M)'s new 7.6-ha shipbuilding facility in the state of Santa Catarina, has secured two newbuild contracts worth about S$140 million from fleet operators in Brazil.

The first contract entails building a series of six 45-tonne bollard pull twin-screw Azimuth Stern Drive (ASD) harbour tugboats, for REBRAS - Rebocadores do Brasil S.A. (SMIT Rebras).

In the second contract, the yard will construct a large-sized 4500dwt Platform Supply Vessel (PSV) based on its proprietary MTD 9045P-DE design for Keppel O&M's Brazilian ship-owning arm, Guanabara Navegacao Ltda (GNL).This is the first vessel constructed under the business model to build Offshore Support Vessels in anticipation of demand in Brazil, and such vessels will be offered for bare-boat charter or sale upon completion.

KSM Brasil specialises in constructing Offshore Support Vessels such as Anchor Handling Tug Supply (AHTS) vessels, PSVs, Oil Recovery Support Vessels and harbour/terminal tugboats.

The new facility in Brazil is also able to fabricate offshore steel structures and support major projects undertaken by Keppel's BrasFELS yard in Angra dos Reis.

Mr Hoe Eng Hock, Executive Director of KSM Brasil shared, "Petrobras will need over 100 Brazilian-built offshore support vessels by 2020, to facilitate the exploration and development of the Santos Basin's deep water pre-salt fields. We see a growing market for purpose-built support vessels that can operate safely and efficiently offshore Brazil.

"Keppel Singmarine has been building harbour tugs for the global fleet of Smit in Singapore and China Nantong for the past 20 years. With the award of six harbour tugs contract, the relationship and partnership between Smit and Keppel has deepened and expanded to the new frontier in Brazil."

KSM Brasil's scope for the six tugboats includes detailed design and engineering work and the purchase of all equipment. The first tugboat will be delivered in 4Q2012, followed by the remaining five at three-month intervals. These Robert Allan-designed tugboats will be deployed by SMIT Rebras to work at key ports across Brazil.

Meanwhile, GNL's 4500 dwt PSV is slated for completion in 2013. The PSV is custom-designed by Keppel's Marine Technology Development unit to meet the stringent requirements of Petrobras. The unique arrangement of the PSV's internal tanks and systems enable it to transport a wide combination of oil-based and water-based bulk cargoes for offshore exploration and production.

This ABS Classed PSV spans 94.2m long and 19.8m wide. It features a large deadweight capacity in excess of 4,500 tonne and a deck space of 1000sqm which can accommodate 26 crew members. Equipped with a diesel-electric propulsion system and dynamic positioning (DP) 2 capability, this PSV is well suited to operate in different offshore conditions.

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

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About Keppel Singmarine Brasil

Keppel Singmarine Brasil is a subsidiary of Keppel O&M, a wholly-owned company of Keppel Corporation Limited. Located in Navegantes, Santa Catarina, Keppel Singmarine Brasil reinforces Keppel O&M's Near Market, Near Customer strategy, and complements its BrasFELS yard in Angra dos Reis in offering a slew of solutions for Brazil's offshore oil and gas sector.

About REBRAS - Rebocadores do Brasil S.A.

REBRAS - Rebocadores do Brasil SA (SMIT Rebras) is the Brazilian towage company of the Boskalis Smit Group, a worldwide leader in dredging, marine projects, towage, salvage, heavy lift, diving and maritime support services. SMIT Rebras started in February 2008 and now provides towage services at six Brazilian ports and terminals with a fleet of 18 brand-new azimuthal stern drive tugs of 50-70 tons bollard pull.

About Guanabara Navegacao Ltda

Guanabara Navegacao Ltda (GNL) is Keppel Offshore & Marine's wholly-owned Brazil ship-owning subsidiary. GNL will build and own Offshore Supply Vessels in Keppel Singmarine Brasil for chartering to operators in the Brazilian offshore market.

For more information, please contact:

Media

Huang Cui Yan
Senior Executive
Group Corporate Communications
Keppel Corporation
Tel: (65) 6413 6450
Email: chaiyueh.wong@kepcorp.com

Investor Relations

Eva Ho
Deputy General Manager
Group Corporate Communications
Keppel Corporation
Tel: (65) 6413 6424
Email: eva.ho@kepcorp.com

This press release is also available on Keppel's websites: www.kepcorp.com and www.keppelom.com.