18 Apr 2011

Keppel & Seafox Group’s MPSEP SEAFOX 5 secures first job in offshore wind market

Keppel FELS Limited (Keppel FELS) is pleased to announce that a contract from the joint-venture Aarsleff Bilfinger Berger (ABJV) Dan Tysk, worth in excess of EUR 35 million, has been secured for SEAFOX 5, the KFELS Multi-Purpose Self-Elevating Platform (MPSEP) wind turbine installation vessel owned and managed with the Seafox Group. The customer ABJV DanTysk has an option to extend the charter by an additional 90 days.

Keppel FELS is on track to complete the construction of SEAFOX 5 in the second half of 2012. When delivered, the vessel will be used for installing offshore wind foundations in the 288 megawatt (MW) DanTysk windfarm, developed by Europe's leading energy company Vattenfall and Stadtwerke München, in the German sector of the North Sea.

A 75/25 joint venture (JV) company was formed between Keppel FELS and Seafox respectively, to build and own SEAFOX 5.

Mr Wong Kok Seng, Managing Director of Keppel FELS, said, "This new charter contract is a significant milestone in establishing Keppel's footprint as a value-added solutions provider for the emerging offshore wind energy sector. I would like to thank our partner, Seafox, whose rich operating expertise was instrumental in the winning of our first charter in the North Sea.

"Our proprietary KFELS MPSEP vessel brings to bear Keppel's experience in designing, engineering and building rigs for harsh environments, and will offer important advantages over the existing fleet of installation vessels, in terms of safety, and operational and cost efficiency. We are pleased that Keppel and Seafox have won the confidence of leading offshore wind farm contractors such as ABJV DanTysk with this new generation vessel."

Keppel FELS' proprietary concept was chosen by the Seafox Group in July 2010 as the basis for a new-generation, wind turbine installation vessel. Upon completion, SEAFOX 5 will be managed and operated by Workfox BV, the leading operator of multi-support service jackups in the Southern North Sea, and member of the Seafox Group.

Mr Keesjan Cordia, Managing Director of Seafox Contractors BV, said, "Developers and operators of offshore wind farms place high emphasis on the reliability of delivery and operations. As such, the collective strengths and track records of the Seafox-Keppel alliance, augmented by an outstanding vessel concept, have launched us forward in sealing the charter contract with ABJV DanTysk.

"SEAFOX 5's ability to withstand harsh offshore environmental conditions all year round will be advantageous in this first charter where it is expected to work through winter in the North Sea. We look forward to meet ABJV DanTysk's expectations with the delivery of safe and uninterrupted operations as we fortify SEAFOX 5's track record."

The KFELS MPSEP, designed by Keppel's R&D arm, Offshore Technology Development, features an offshore pedestal crane with a 1,200-tonne lifting capacity, and a spacious deck in excess of 3700m2 with a variable load of 7000 MT.

"The SEAFOX 5 will prove to the industry that this vessel can be well utilised in both foundation and turbine installation works. We are more than pleased to get started on the DanTysk foundation works in cooperation with ABJV", Mr Cordia added.

In addition, to being well-suited for servicing offshore wind farms, SEAFOX 5 also meets all the stringent operating regulations of the offshore oil & gas industry and can support a wide range of related activities such as accommodation, well intervention, maintenance, construction and decommissioning.

The above charter contract is not expected to have material impact on the net tangible assets or earnings per share of Keppel Corporation Limited for the current financial year.

- END -

About ABJV DanTysk

ABJV DanTysk is a joint venture between Bilfinger Berger Ingenieurbau GmbH, Germany, and Per Aarsleff A/S, Denmark, both companies working as international contractors in major infrastructure projects In this long lasting cooperation ABJV has been awarded with more than 630 offshore wind turbine foundations and is the market leader for offshore foundations in Europe.

About Seafox Group

Founded in 1991, the Seafox Group is a leading provider of offshore accommodation and multi-support service jack ups across the world.

The Seafox Group services a global range of customers with a primary focus on the Southern North Sea in Europe. It has extensive experience operating and managing assets in this region, which is known for its stringent rules and regulations, and difficult environment.

Currently, the Group owns five jack-ups and 50 temporary living quarters. With the exception of the Seafox 3, all jack-ups are time chartered out on full service contracts to respectable customers (e.g. Shell, Total, ConocoPhillips etc.) in the Southern North Sea on short and long term bases.

The Seafox Group's operational activities are fully outsourced to Workfox B.V./Ltd situated in Hoofddorp NL and Great Yarmouth UK. Workfox BV/Ltd is the leading operator of multi-support service jack-ups in the Southern North Sea and has been the exclusive manager of the Seafox fleet since the early 90's.

About Keppel FELS

Keppel FELS is a subsidiary of Keppel Offshore & Marine Ltd (Keppel O&M), a wholly-owned company of Keppel Corporation Limited. Keppel O&M is a leader in offshore rig design, repair and construction, ship repair and conversion and specialised shipbuilding. Its near market, near customer strategy is bolstered by a global network of 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.

For more information on Keppel FELS, please visit www.keppelfels.com

For further information, please contact:

Keppel Group Corporate Communications
Roy Tan (Mr)
Assistant Manager
Tel: +65 6413 6421
Email: roy.tan@kepcorp.com

Seafox Contractors B.V
Keesjan Cordia
Managing Director
Tel: + 31 23 556 31 31
Email: cordia@seafoxcontractors.com

This press release is also available at www.kepcorp.com and www.keppelom.com