25 Mar 2010

Keppel Offshore & Marine secures $140 million worth of contracts from repeat customers

Keppel Offshore & Marine Limited (Keppel O&M) through its subsidiaries, Keppel Shipyard, Keppel FELS and Keppel Verolme, has secured $140 million worth of contracts for the conversion of a Floating Production Storage and Offloading facility (FPSO) and repair and modification of two semisubmersibles (semi).

Keppel Shipyard will undertake the upgrading and conversion of a Suezmax tanker into an FPSO for repeat customer Bumi Armada Berhad (Bumi Armada).

Keppel FELS and Keppel Verolme have each secured the repair and modification of a drilling semi from Stena Drilling.

Mr Tong Chong Heong, CEO of Keppel O&M, said, “We would like to thank our customers Bumi Armada and Stena Drilling for their continued support and trust in Keppel O&M and our subsidiaries.

“Our near market, near customer strategy not only allows us to respond swifty to the needs of our global customers, it also enables us to gain a keen understanding of the offshore environments in which they operate. This intimate knowledge of their operations challenges enables us to add value to the projects entrusted to us.

“The fact that customers such as Bumi Armada and Stena Drilling keep returning to Keppel yards across the world, reinforces our strategy and position as their preferred global solutions partner.”

Keppel Shipyard is expected to commence work on the FPSO in the second quarter of 2010. The work scope includes refurbishment and life extension works; fabrication and installation of accommodation blocks, turret support structure and topside modules; upgrading of auxiliary support systems; and installation of owner supplied equipment.

When completed in the second quarter of 2011, the facility will be able to produce up to 45,000 barrels of oil per day (bopd), and store 1,000,000 barrels of oil. The converted FPSO will be deployed in the Te Giac Trang (TGT or White Rhinoceros) oil field, located in the Cuu Long Basin, Vietnam, for Hoang Long Joint Operating Company, a partnership comprising Petrovietnam, Soco International, PTTEP and OPECO.

Mr Hassan Basma, Executive Director and Chief Executive Officer of Bumi Armada, said, “We are pleased to work with Keppel again as it’s a true partnership built on trust; a collaboration that focuses on quality and timely delivery.”

Keppel Shipyard’s affiliation with Bumi Armada goes back into the last decade when it first converted the FPSO Armada Perkasa in 1997 for operation in the PM3 Field, Malaysia. It was upgraded further in 2007 for deployment in the Okoro Setu Field, Nigeria. The FPSO Armada Perdana was delivered in August last year for deployment in Oyo Field, Nigeria. Keppel Shipyard is currently completing a derrick lay barge for Bumi Armada at its sister yard, Caspian Shipyard Company, in Azerbaijan. The latest FPSO conversion contract is Keppel Shipyard’s fourth project together with Bumi Armada.

Over at Keppel FELS, repairs and major upgrading works will be performed on drilling semisubmersible Stena Clyde. Due to arrive in April 2010, work on the semi includes a Special Periodic Survey, main engine replacements and mooring winch system upgrade.

The semi will return to its deployment in Perth Australia for Apache Corporation, upon its expected completion in June 2010. Stena Clyde was previously at Keppel FELS for similar Special Periodic Survey works in 2000 and 2005.

Over in the Netherlands, Keppel Verolme has been awarded with the repair and maintenance of a 3,700 deadweight tonne dynamically positioned drilling semi, Stena Don. The job scope involves upgrading the drilling rig capabilities by installing four blisters and two sponsons, as well as overhauling thrusters. Work on Stena Don is scheduled for completion in the second quarter of 2010.

Keppel O&M is a leader in offshore rigs, ship repair and conversion and specialised shipbuilding. Keppel O&M’s near market, near customer strategy is bolstered by a global network of 20 yards and offices in the Asia Pacific, Gulf of Mexico, Brazil, the Caspian Sea, Middle East and the North Sea regions. Integrating the experience and expertise of its yards worldwide, the group aims to be the provider of choice and partner for solutions for the offshore and marine industry.

Bumi Armada Berhad is Malaysia’s largest owner and operator of offshore vessels with close to 50 vessels comprising anchor-handling vessels (AHTS), offshore supply vessels (OSVs), utility, safety standby, accommodation and maintenance work vessels, oil terminal support vessels, landing craft/oil recovery vessels, and topographic survey vessels. The company’s current focus is in Floating Production Storage and Offloading (FPSO) units, Engineering, Process, Installation, Construction and Commissioning (EPICC) and ship management. An international company based in Malaysia, Bumi Armada currently serves clients in Malaysia, South-East Asia, India, Mexico, Congo, Angola, Nigeria and the Caspian Region.

The 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.

For further information, please contact

Roy Tan
Keppel Group Corporate Communications
Tel: (65) 6413 6421
Email: roy.tan@kepcorp.com

Attachments:

Keppel Shipyard delivered FPSO Armada Perdana (above) to Bumi Armada in August 2009. The latest contract is the fourth project Keppel Shipyard will undertake for Bumi Armada.

Back for repair and upgrading works, Stena Clyde was previously at Keppel FELS for similar work in 2000 and 2005.

Download&nbsp-&nbspHigh res photos