09 Jan 2007

Keppel is on track for first delivery in 2007

Keppel Offshore & Marine Limited (Keppel O&M) maintains its strong track record of on time, on budget deliveries with its first completion in 2007.

Through its wholly-owned subsidiary, Keppel Shipyard Ltd (Keppel Shipyard), the Floating Production Storage and Offloading facility (FPSO) Polvo is on course to be delivered to valued customer, Prosafe Production (Prosafe) in February.

FPSO Polvo was named by Lady Sponsor, Mrs CJ Hadden at a ceremony held earlier today. Mrs Hadden is wife of Mr Stephen J. Hadden, Senior Vice President (Exploration & Production) of Devon Energy, the oil company chartering FPSO Polvo.

A leading owner and operator of FPSO and FSO facilities, Prosafe has in the last ten years entrusted Keppel Shipyard exclusively to carry out the conversion and upgrading of all their FPSO and FSO systems, numbering eight in total.

During the ceremony, Mr Arne Austreid, President and CEO of Prosafe, said, “I would like to thank Keppel for its flexibility and efficiency, and for delivering yet another high quality FPSO. I would also like to express my gratitude to all the workers of the shipyard who have contributed with determined and hard work.

“Keppel’s performance is a good basis for continued co-operation, and Prosafe will this year convert at least two additional vessels in this shipyard.”

Mr Choo Chiau Beng, Chairman & CEO of Keppel O&M thanked Prosafe for its confidence in Keppel Shipyard, saying, “Our effective management and execution of this fast-track project has been possible because Prosafe brings its long project experience to complement that of Keppel Shipyard.”

Commenting on the offshore production market, he said, “The market has in the last two years seen strong orders for floating production units. Looking ahead, we expect this to be sustained with greater demand for more FPSO/FSO conversions.”

He added that Keppel Shipyard is committed to further support and collaborate with Prosafe as Prosafe seeks to expand its business. He said, “It is Keppel’s vision to be a provider of choice and a partner in solutions. We look forward to our continued partnership.”

Upon delivery FPSO Polvo will be deployed offshore Brazil in the Polvo Field. It is capable of handling a daily oil production of 90,000 barrels of oil per day (bopd) and having a storage capacity of 1.6 million barrels.

Keppel Shipyard is a wholly owned subsidiary of Keppel Corporation Limited through Keppel O&M. Keppel O&M is a global leader in offshore rigs and ship conversion and repair as well as a specialised shipbuilder. Combining the expertise and experience of its subsidiaries, Keppel FELS, Keppel Shipyard and Keppel Singmarine, the group’s near market, near customer strategy is bolstered by a global network of 17 yards 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, Keppel O&M aims to be a provider of choice and a partner in solutions for the offshore and marine industry.

For further information, please contact

Sarah Seah (Ms)
Deputy General Manager
Keppel Group Corporate Communications
Tel: (65) 6413 6420
Email: sarah.seah@kepcorp.com

Attachments:

FPSO Polvo was named by Lady Sponsor, Mrs CJ Hadden (4th from left) at Keppel Shipyard today. Accompanying her are (from left), Mr Nelson Yeo, ED, Keppel Shipyard, Mr Arne Austreid, President & CEO, Prosafe, Mr Stephen Hadden, Snr VP (E&P), Devon Energy, Mr Reidar Lund, Chairman, Prosafe, Mrs Lund, Mr Choo Chiau Beng, Chairman & CEO, Keppel O&M, Mr Hugh Parry, President, Prosafe Production, Mr Shin Heon Cheol, President & CEO, SK Corp and Mr Kim Hyun Moo, Vice President (E&P), SK Corp.