16 Dec 2013

Keppel secures S$150 million in contracts

Keppel Offshore & Marine Ltd's (Keppel O&M) subsidiaries Keppel Shipyard Ltd (Keppel Shipyard) and Keppel Nantong Shipyard Co. Ltd (Keppel Nantong) have secured five contracts worth about S$150 million in total.

Mr Michael Chia, MD (Marine and Technology) of Keppel O&M, said, "We are glad to have the support of repeat and new customers for a range of offshore and marine projects. Keppel Shipyard's latest contracts bear testament to its extensive expertise and experience in Floating Production Storage and Offloading (FPSO) and Floating Storage and Offloading (FSO) conversion, upgrading and repair works. Meanwhile, Keppel Nantong's two new projects reflect its growing newbuilding and fabrication capabilities."

Keppel Shipyard's contracts are FPSO and FSO projects from Armada C7 Pte Ltd, (Armada C7), a joint venture company of Bumi Armada Berhad (Bumi Armada) and Shapoorji Pallonji Group (SP); Apache Energy Limited (Apache Energy); and EMAS AMC Pte Ltd (EMAS AMC).

Keppel Shipyard has commenced work on the Armada C7 project, which is scheduled to complete in 3Q 2014. Keppel Shipyard's work scope includes refurbishment and life extension works, upgrading of living quarters to accommodate 70 personnel, fabrication and installation of an internal turret mooring system as well as the installation and integration of topside process modules.

With an oil production capacity of 26,500 barrels of oil per day (bopd) and storage capacity of 510,000 barrels (bbl), the FPSO will support India's national oil company Oil and Natural Gas Corporation Limited's operations in the Cluster 7 field, located in the west coast of Mumbai, India.

For the contract with Apache Energy, Keppel Shipyard will carry out steel and piping systems renewal, coating works, equipment overhauling, and installation of new equipment on FPSO Ningaloo Vision.

Pre-fabrication work for this FPSO project has already started. The vessel is expected to arrive at the yard in 1Q 2014. After repair and rectification works, FPSO Ningaloo Vision will return for operations in the Van Gogh field, located in the Exmouth Basin, offshore Northwest Australia.

As for the contract with EMAS AMC, a subsidiary of EZRA Holdings, Keppel Shipyard will undertake the fabrication of an external turret for an FSO unit.

Work has commenced and the turret is scheduled for completion in 2Q 2014. Upon completion, the turret will be delivered to STX Offshore & Shipbuilding Co Ltd in Korea for integration with the newly built FSO. The FSO will be deployed in West Africa.

Over in China, Keppel Nantong has secured two contracts from Smit Shipping Singapore Pte Ltd, a wholly-owned subsidiary of Royal Boskalis Westminster Group, to undertake the construction of two submersible barges.

Work for both barges, Giant 5 and Giant 6, is scheduled to commence in1Q 2014. Giant 5 is slated to be completed by end 2014, while Giant 6 is expected to be completed in early 2015. When completed, the barges will be deployed in Europe.

With the latest contracts, Keppel O&M has secured almost S$7 billion in new orders year-to-date.

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
Keppel Shipyard Ltd (Keppel Shipyard) is the trusted industry name for the repair, conversion and upgrading of a diverse range of vessels. It is a leader in the conversion of Floating Production Storage and Offloading (FPSO), Floating Storage and Offloading (FSO) and Floating Storage and Re-gasification Units (FSRU). Keppel Shipyard is a subsidiary of Keppel O&M, a wholly-owned company of Keppel Corporation.

About Keppel Nantong
A wholly-owned subsidiary of Keppel O&M, Keppel Nantong specialises in the construction of offshore support vessels, harbour tugs and offshore semi/jackup rig structures.

About Bumi Armada
Bumi Armada Berhad 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 2,000 people from 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 largest OSV owner operator in Malaysia and third in South East Asia and the fifth largest FPSO operator in the world. For more information, please refer to www.bumiarmada.com.

About Shapoorji Pallonji Group
The Shapoorji Pallonji Group is a dynamic enterprise which draws vital support from its various individual entities to be able to execute turnkey projects, swiftly and efficiently. Along with the flagship company Shapoorji Pallonji & Company Limited (specializing in Construction, Design & Build and EPC), the other luminaries give the SP Group its tremendous strength and capability.

Today, with over 23,000 employees and a group turnover of US$2.5 Billion, Shapoorji Pallonji Group has evolved and grown exponentially to become a huge conglomerate with multiple business segments with a progressive outlook and a thoroughly professional approach. The Group today has a strong presence in India and internationally including the Middle East and Africa. With a rich legacy of 148 years and a consistently superior track record, the Shapoorji Pallonji Group remains committed towards excellence in each domain of its operations. The Group's business interests cover real estate development, construction (including residential, commercial, industrial and infrastructure), EPC contracts, infrastructure (comprising coal mining, power, ports and roads), biofuels and agriculture, consumer products, electro-mechanical and MEP services, facades and interiors, engineering, textiles, business automation and shipping and logistics.

Shapoorji Pallonji in a joint venture with Bumi Armada has successfully constructed a FPSO vessel, a first in India, called The Armada Sterling.

About Apache Energy
Apache Energy Limited is the principal Australian subsidiary of Apache Corporation, one of the largest independent oil and gas exploration and production companies in the world.

About EMAS
EMAS - a leading global contracting group providing offshore/subsea construction, marine, production and well intervention services - is Ezra's operating brand. With offices across five continents, it prides itself in having the right people and solutions for the oil and gas (O&G) industry by combining its global footprint and proven engineering skills with a diverse offering of premium assets and services designed to fully meet clients' needs. Operating in unison, Ezra's core divisions are able to execute a full spectrum of seabed-to-surface engineering, construction, marine and production services anywhere in the world.

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