18 Aug 2010

Keppel Shipyard secures contract to modify FPSO OSX-1

Keppel Shipyard Limited (Keppel Shipyard) has secured a contract for the modification of the Floating Production Storage and Offloading (FPSO) vessel OSX-1, worth approximately S$50 million.

The FPSO OSX-1 is owned by OSX 1 Leasing B.V., a subsidiary of OSX Brasil S/A. Commencing in the third quarter of 2010, Keppel Shipyard's scope of work includes procurement, detailed engineering and the modification of the topside process modules. Keppel Shipyard will work with BW Offshore, which will provide project management, engineering services and technical guidance services to OSX 1 Leasing B.V.

Scheduled to leave Keppel Shipyard in the second quarter of 2011, the vessel will be deployed in the Campos Basin, offshore Brazil on a 20-year lease to OGX Petróleo e Gás.

Mr Nelson Yeo, Managing Director (Marine) of Keppel Offshore & Marine, said, "We are pleased to embark on this partnership with OSX. This contract is a result of the track record we have built up with our customers in the markets where we are present. Our ability to deliver to our customer's satisfaction a complete range of solutions stands us in good stead to be the provider of choice for the offshore and marine industry. Having completed a significant number of projects successfully working in Brazil, we look forward to delivering another outstanding FPSO for the region."

OSX Brasil S/A is a Brazil-based publicly traded company listed on the Brazilian Stock Exchange, which operates in the areas of shipbuilding, the chartering of exploration and production units (E&P), as well as operations and maintenance services (O&M). OSX belongs to the EBX Group, founded and chaired by the entrepreneur Mr Eike Batista, which has been developing and managing business activities for almost 30 years in fields such as mining, logistics, oil & gas, real estate, energy, renewable resources and entertainment.

Keppel Shipyard is a wholly owned subsidiary of Keppel Corporation, through Keppel Offshore & Marine (Keppel O&M), a leader in offshore rigs, FPSO/FSO/FSRU conversions, turret and mooring systems fabrication, ship repair, and specialised shipbuilding. Keppel O&M's near market, near customer strategy is bolstered by a global network of more than 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.

The contract is 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
Senior Executive
Keppel Corporation Limited
Group Corporate Communications
Tel: (65) 6413 6421
Email: roy.tan@kepcorp.com

Keppel's impressive track record of projects for Brazil has enabled it to secure another significant project for the region, with new customer OSX.