01 Dec 2004

Keppel gains foothold in Mexican offshore market with US$164 million contract

The Keppel SLP Consortium has won a US$164 million contract to build two accommodation platforms in an international tender by PEMEX Exploración y Producción (PEP), a subsidiary of Petróleos Mexicanos (PEMEX), Mexico’s national oil company.

The Keppel SLP Consortium comprises four partners, namely Keppel Offshore & Marine USA Inc (Keppel O&M USA), SLP Engineering Ltd, Keppel AmFELS Inc and Gulf Island LLC. Keppel Offshore & Marine (Keppel O&M) will have 60% share of the consortium through its subsidiaries Keppel O&M USA and Keppel AmFELS.

Keppel O&M USA and SLP Engineering will together undertake project management, design & engineering, procurement, hook-up and commissioning of the platforms.

Keppel AmFELS will build the accommodation modules while Gulf Island will fabricate the jackets, piles and deck leg modules. Installation of the jackets and platforms will be undertaken by PEP.

“In Keppel O&M’s near market, near customer strategy, our Keppel AmFELS yard in Brownsville, USA, is well positioned for opportunities to service the Mexican offshore oil and gas market.

“Keppel AmFELS delivered the jackup drilling rig, TONALA, a KFELS B class, to Perforadora Central for service with PEMEX, earlier this year. With this latest contract, we are glad that we are gaining a foothold in this important market,” said Mr Tong Chong Heong, Managing Director & Chief Operating Officer of Keppel Offshore & Marine and Chairman of Keppel AmFELS.

The accommodation platforms, to be called HA-KU-S and HA-KU-M, are to be installed in the Ku-Maloob-Zaap field in the Bay of Campeche, Gulf of Mexico, by third quarter of 2006.

Mexico is the third largest producer of crude oil in the world, with PEMEX ranking eighth largest integrated oil company in the world. The sole producer of Mexican crude oil, natural gas and refined products, PEMEX has been increasing crude and gas production in anticipation of rising domestic consumption and hydrocarbon exports. To meet its targets, the company has steadily upped its capital expenditure for Exploration & Production from US$5.1 billion in 1998 to US$11 billion in 2004.

The contract secured is not expected to have any significant impact on the net tangible assets and earnings per share of Keppel Corporation for the financial year ending 31 December 2005.

Located along the Brownsville Navigation Ship Channel in Texas, Keppel AmFELS is the best-equipped offshore rig construction yard in the Gulf of Mexico. The yard aims to be a provider of choice and a partner in offshore solutions for its customers.

The yard, formerly ‘AMFELS, Inc.’, was renamed on 15 November to leverage the Keppel and FELS brand names in its vision to further strengthen its presence in the Gulf of Mexico.

Keppel AmFELS and Keppel O&M USA are part of the Keppel Offshore & Marine network of 16 shipyards worldwide including Singapore, USA, Brazil, Azerbaijan, Kazakhstan, Philippines, UAE, the Netherlands and Norway.

A wholly owned subsidiary of Singapore-listed Keppel Corporation Ltd, Keppel Offshore & Marine is a leader in offshore rigs and ship conversion and repair, and a specialised shipbuilder.

Based in the UK, SLP Engineering Ltd is a market leader in selected energy and utilities markets. With over 30 years experience, SLP Engineering’s main activities are in accommodation platforms and minimal facilities platforms for offshore oil and gas operations. SLP Engineering has undertaken the engineering of the last seven accommodation platforms for PEMEX.

Gulf Island LLC is a specialised fabricator of jackets and other offshore structures in the Gulf of Mexico.


For further information, contact:
Sarah Seah (Ms)
Deputy General Manager
Keppel Group Corporate Communications
Tel: 65-64136420
Email: sarah.seah@kepcorp.com


This press release is available on www.kepcorp.com and www.keppelfels.com