THE MIDDLE EAST
United Arab Emirates
THE NORTH SEA / EUROPE
THE CASPIAN SEA
Drawing on the synergies and collective strengths of its yards and offices worldwide, Keppel Offshore & Marine (Keppel O&M) delivers competitive and innovative offshore and marine solutions and services to its customers.
Until a decade ago, Keppel's stable of shipyards ran as separate entities. Their integration in 2002 formed Keppel O&M, one of the world's largest offshore and marine groups today. This strategic move brought together three different operating companies - Keppel FELS, the leading rig designer and builder; Keppel Shipyard, the expert in shiprepair and conversions; and Keppel Singmarine, the shipbuilding specialist.
Mr Choo Chiau Beng, CEO of Keppel Corporation and Chairman of Keppel O&M, elaborated, "To become a truly global company, we would have to forge a unified team. And it was clear what we had to do. There would be no more in-fighting and competing against each other within the group. We would always focus on the outside - focus on our customers and on the marketplace."
The new, overarching unit inherited its three component companies' more than 300 years of combined experience in the industry. At the point of integration, Keppel FELS was in its 35th year, while Keppel Singmarine was at its 115th, having started as Singapore Slipway in 1887. As for Keppel Shipyard, it was in its 143rd year - the company's lineage can be traced back to the construction of the first drydock in Singapore, which was located in Keppel Harbour in 1859.
As the adage goes, the whole is far greater than the sum of its parts. Harnessing the substantial synergies and collective strengths yielded by the amalgamation, Keppel O&M has been able to offer exceptional value propositions to customers worldwide.
In 2001, Keppel O&M's three component companies had a combined annual turnover and net profit of S$1.5 billion and S$82 million respectively. In 2011, Keppel O&M's turnover was S$5.7 billion, while its net profit was S$1.1 billion. Its net order book has also grown from S$1.9 billion in 2003 to S$9.4 billion in 2011.
In addition, working as a unified network enabled Keppel O&M's group of companies to better rationalise their costs and resources. For instance, cost-savings were accrued by consolidating the procurement of materials, equipment and services. And by collaborating on projects demanding a wide range of expertise, the companies could provide their customers with more competitive solutions.
Mr Tong Chong Heong, CEO of Keppel O&M, shared, "The bundling of our capabilities allowed us to maximise value for our customers - they are offered an attractive matrix of cost-competitive cum worldclass services."
With the amalgamation, the overseas subsidiaries that previously came under Keppel O&M's three component companies now came directly under the Keppel O&M banner. Pressing forward with its Near Market, Near Customer strategy, Keppel O&M further expanded its global network, which today comprises 20 yards, located near major offshore oil and gas regions and shipping routes.
Through its network of yards, Keppel O&M has been able to support national aspirations for local content in major offshore and marine projects, which drives an inflow of investments, creates employment and transfers technology and expertise.
Keppel O&M has also been able to provide quality repair services to international customers promptly and conveniently. As containers, tankers and bulk carriers are part of a tight supply chain, they are usually repaired at yards close to where they load and offload to minimise downtime.
"Near Market, Near Customer means, first of all, not necessarily locating our yards in the lowest cost countries," explained Michael Chia, Director (Group Strategy and Development) of Keppel Corporation and MD (Offshore) of Keppel O&M. "It means going to where it is most appropriate to serve our customers. We believe that, in the long term, our customers' interests will be best served if our yards are located near them and their target markets."
While streamlining its businesses and strengthening its position in overseas markets, Keppel O&M also continues to work closely with its customers to customise solutions to meet specific needs.
Keppel O&M's research and development, design and engineering efforts are spearheaded by Keppel Offshore & Marine Technology Centre (KOMtech), which was set up in 2007.
Being the technology division of Keppel O&M, KOMtech is responsible for research and development, product development and commercialisation as well as process technology aimed at improving productivity in Keppel O&M yards.
It augments the commercialisation work of the existing three design and engineering units within Keppel O&M - Offshore Technology Development (OTD), Deepwater Technology Group (DTG) and Marine Technology development (MTD).
Set up in 1994, OTD focuses on designing jackups and their critical systems. Through OTD's efforts, Keppel O&M has a suite of proprietary jackup designs that is widely accepted by the market. The KFELS B Class design is the industry choice drilling solution for benign waters. Meanwhile, demand for Keppel O&M's harsh environmental jackup designs are gaining momentum.
Specialising in semisubmersible (semi) and other floating structures, DTG was set up in 2002. Today, Keppel O&M is the only shipyard group in the world with its own deepwater semi design capabilities and its own suite of proprietary deepwater solutions.
As for MTD, it was established in 2002 and concentrates on designing specialised offshore support vessel and tugboats.
Over the years, Keppel Shipyard has also grown its capabilities in conversion work, expanding its range of competencies to include detailed engineering and fabrication of topside process modules for Floating Production Storage and Offloading (FPSO) units.
As exploration and production activities become more sophisticated and demanding, Keppel O&M with its wide ranging design capabilities is in pole position to help meet these challenges.
2012 marks the 10th anniversary of the formation of Keppel O&M, and the group has much to celebrate. It has enjoyed healthy growth over the past decade, further establishing itself as the preferred provider for a diverse range of offshore and marine services globally.
In the face of an increasingly competitive landscape, the group continues to focus on delivering excellence by enhancing productivity, managing costs more effectively, reaping synergies and honing technology capabilities.
Behind these efforts is a dedicated workforce, which Keppel O&M not only equips with the necessary skills and know-how but also imbibes with the Can-Do! attitude. With committed, capable and passionate people working hand-in-hand towards shared goals, Keppel O&M will sustain its strong trajectory, ahead of the curve.