07 Oct 2014

Keppel secures S$153 million in contracts from repeat customers

Keppel Offshore & Marine Ltd (Keppel O&M)'s wholly owned subsidiaries Keppel Shipyard Ltd (Keppel Shipyard) and Keppel Nantong Shipyard Co. Ltd (Keppel Nantong) have secured contracts from repeat customers worth a total of S$153 million.

Keppel Shipyard's contract is for the conversion of a Floating Production Storage and Offloading (FPSO) vessel for Armada Cabaca Limited, a wholly owned subsidiary of Bumi Armada Berhad (Bumi Armada) while Keppel Nantong's contract is to construct a submersible barge for Smit Shipping Singapore Pte Ltd (Smit Shipping), a wholly-owned subsidiary of Royal Boskalis Westminster Group.

Mr Michael Chia, Managing Director (Marine & Technology), Keppel O&M, said, "The award of these contracts from Bumi Armada and Smit Shipping affirms the confidence that repeat customers have in the quality of our products and the timeliness which we deliver with. Such high level of standards in safety, customer service, and operational excellence can be found across our global yards.

"In working with these customers who have shown great faith and support in us, we will draw from our working experiences in previous and ongoing projects to continuously improve our performance and provide value-added services."

Keppel Shipyard has commenced work on the FPSO conversion for Bumi Armada which is scheduled to complete in 2Q 2016. The yard's work scope for this project includes refurbishment and life extension works, upgrading of living quarters to accommodate 100 personnel, installation and integration of an external turret mooring system and topside process modules.

The FPSO, which will have a storage capacity of 1,700,000 barrels, will be able to handle up to 80,000 barrels of oil per day (bopd), 120,000 barrels per day (bpd) of water injection, and 120 million standard cubic feet per day (MMscfd) of gas handling. Upon completion, the FPSO will be producing for the Angola Block 15/06 East Hub Project that is located 350 km northwest of Luanda, Angola.

Over in China, work has also commenced for the barge that Keppel Nantong is building for Smit Shipping. The new barge, Giant 7, will be the third such unit to be delivered by Keppel to the marine services company. Giant 7 will join the first two units, Giant 5 and Giant 6, which are still undergoing construction, to be deployed in the Wheatstone project, 12 km west of Onslow off the Pilbara coast of Western Australia.

Giant 7 is slated to be completed in 2H 2015, while Giant 5 and 6 are on track for completion in end 2014 and early 2015 respectively.

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 Shipyard and Keppel Nantong

Keppel Shipyard 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. The shipyard is currently undertaking the world's first-of-its-type conversion of an existing Moss LNG carrier into a Floating Liquefaction Vessel (FLNGV).

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


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 over 25 nationalities.

Bumi Armada provides these offshore services via five strategic business units - Floating Production, Storage and Offloading (FPSO), Offshore Support Vessels (OSV), Transport and Installation (T&I), Oilfield Services (OFS) and Gas Development and Technology (GDT). These are complemented by three support units which are Asset Management & Operations (AMO), Engineering and Technology (E&T) and Major Projects (MP).

Bumi Armada is the fifth largest FPSO player in the world and an established OSV owner and operator across Asia, Africa and Latin America. For more information, please refer to www.bumiarmada.com

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