17 Mar 2014

Keppel secures contracts worth S$140 million

Keppel Offshore & Marine Ltd's (Keppel O&M) subsidiaries Keppel Shipyard Ltd (Keppel Shipyard), Keppel Singmarine Pte Ltd (Keppel Singmarine), and Keppel Nantong Shipyard Co. Ltd (Keppel Nantong) have secured contracts worth a total of about S$140 million.

Mr Michael Chia, Managing Director (Marine & Technology) of Keppel O&M, said, "We are happy to be able to offer our comprehensive suite of offshore and marine solutions to our valued repeat customers, who are once again placing their confidence in Keppel by entrusting their projects with us.

"Keppel Shipyard's latest contract bears testament to our expertise and experience in Floating Production Storage and Offloading (FPSO) turret fabrication and installation, while Keppel Singmarine's and Keppel Nantong's contracts reiterate our competency in the construction of a variety of ships, including ice-class vessels."

Keppel Shipyard will undertake for SOFEC, Inc. (SOFEC) the fabrication of an external turret mooring system for an FPSO vessel that will operate in the Tweneboa-Enyenra-Ntomme fields in Ghana, in water depth averaging 1,500 metres. Fabrication of the turret is expected to be completed in 1Q 2015.

Meanwhile, Keppel Singmarine has secured three contracts from Bumi Armada Offshore Holdings Limited - a subsidiary of Bumi Armada Berhad (Bumi Armada) - to build two ice-class supply vessels and an ice-class multi-purpose duty-rescue vessel.

When completed and delivered in 2015, these vessels will support offshore platforms at the Filanovsky oil field in the northern part of the Caspian Sea, off the coast of Russia, providing year-round services such as the delivery of cargoes, salvage, search and rescue functions, fire-fighting operations, and towing and tanker mooring operations.

Keppel Singmarine strengthened its position in the specialised market of ice-class vessels when it won the contract from LUKOIL-Kaliningradmorneft in 2006 to construct Asia's first two icebreakers, and it has continued to build up its capabilities in ice technology since. The contracts from Bumi Armada will add another three to its existing track record of seven newbuild ice-class vessels for the Arctic and Caspian regions, marking a significant stride in the company's endeavours to be a choice partner in this market.

In China, Keppel Nantong has secured an order from KSP Towage Sdn Bhd for the construction of two tugs. These tugs, which are scheduled for delivery in 3Q 2014, will be chartered for deployment in Malaysia.

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.

END

About Keppel Shipyard, Keppel Singmarine and Keppel Nantong

Keppel Shipyard, Keppel Singmarine and Keppel Nantong are subsidiaries of Keppel Offshore & Marine (Keppel O&M), a wholly-owned company of Keppel Corporation.

Keppel Shipyard is the trusted industry name for the repair, conversion and upgrading of a diverse range of vessels, and a global leader in the conversion of Floating Production Storage and Offloading (FPSO), Floating Storage and Offloading (FSO) and Floating Storage and Re-gasification Units (FSRU), as well as the fabrication and installation of turrets and mooring systems, and topside process modules.

Keppel Singmarine is the the specialised shipbuilding arm of Keppel O&M, with a track record of designing and building some 400 ships of various specifications and functions, spanning from Anchor Handling Tug/Supply vessels, Multi-Purpose Offshore Support vessels and tugboats to highly advanced solutions such as icebreakers and ice-class support vessels.

Keppel Nantong specialises in the construction of offshore support vessels, harbour tugs and offshore semi/jackup rig structures.

For more information, visit www.keppelom.com.

About SOFEC

Established in 1972, SOFEC is an industry leader with proven expertise in marine terminal and floating production system concept, design, fabrication, installation, delivery and service. SOFEC is a proven turnkey supplier of marine terminals, turrets and other innovative mooring systems, riser and swivel systems, and service buoys. Mooring systems for FPSOs and FSOs include permanent and disconnectable turret moorings, external turret moorings, innovative spread moorings, tower yoke moorings and import/export marine terminals. SOFEC is based in Houston, Texas with approximately 160 employees.

SOFEC has delivered over 100 mooring systems for FPSO/FSOs and marine terminals around the world. For more information, visit www.sofec.com.

About Bumi Armada

Bumi Armada Berhad (Bumi Armada) is a Malaysia-based international offshore oilfield services provider with a presence in over 18 countries spread across five continents, underpinned by its access to over 3,000 people from 40 nationalities. Bumi Armada provides these offshore services via five strategic business units - FPSO, Offshore Support Vessels (OSV), Transport and Installation, Oilfield Services and Gas Development and Technology. These are complemented by three support units which are Asset Management & Operations, Engineering and Technology and Major Projects.

Bumi Armada is the largest OSV owner operator in Malaysia and third in South East Asia and the fifth largest FPSO operator in the world. For more information, please refer to www.bumiarmada.com.

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