04 Apr 2012

Keppel Shipyard secures FPSO contracts from repeat customers worth S$170 million

Keppel Shipyard Ltd (Keppel Shipyard) has secured Floating Production Storage and Offloading (FPSO) upgrading projects from its long-term partners SBM Offshore N.V. (SBM Offshore) and Bumi Armada Berhad (Bumi Armada). The combined contract value of the two projects is S$170 million.

The first project is from SBM Offshore to refurbish and upgrade an existing FPSO vessel, FPSO Xikomba. Work on this FPSO unit is expected to be completed by 3Q 2013.

Leased by Eni Angola S.p.A (eni) for 12 years for the development of Block 15/06, offshore Angola, FPSO Xikomba is jointly owned by SBM Offshore and Sociedade Nacional de Combustíveis de Angola, E.P. (Sonangol), Angola's national oil and gas company.

Mr Bruno Chabas, Chief Executive Officer of SBM Offshore, said, "Long-term business partnerships are key to our performance, our ability to deliver and our ambition in furthering our lead in the FPSO market. We value our proven partnership with Keppel Shipyard. The award of the FPSO Xikomba is another milestone in this deep long-term relationship."

Keppel Shipyard's scope of work on FPSO Xikomba comprises life extension, refurbishment and upgrading of existing topside modules and turret mooring system as well as the installation and integration of new topside modules. The FPSO vessel will subsequently proceed to Angola for completion.

Keppel Shipyard's second project is to modify and upgrade Bumi Armada's FPSO Armada Claire. This includes refurbishment and life extension works as well as installation and integration of topside modules. Work is expected to commence in 3Q 2012, and complete in 4Q 2013.

Upon completion, FPSO Armada Claire will be deployed in the Balnaves Field, north-west Australia.

Mr Hassan Basma, Executive Director and Chief Executive Officer of Bumi Armada, said, "With the trust and collaboration of committed and capable business partners, we have grown and enhanced our fleet of quality FPSO vessels. The Armada Claire project is our tenth major collaboration with Keppel Shipyard, and we are confident that it will be professionally executed."

Mr Nelson Yeo, Managing Director of Keppel Shipyard, said, "We thank SBM Offshore and Bumi Armada for reinforcing their trust and confidence in us with these FPSO contracts. Drawing on our experiences from previous collaborations, we strive to continuously improve our performance as we move forward."

Since 2000, Keppel has delivered 14 FPSO/FSO conversion projects to SBM Offshore. Keppel Shipyard's ongoing projects with SBM Offshore include FPSO OSX 2, FPSO Cidade de Paraty and FPSO Cidade de Anchieta.

In 2011, Keppel Shipyard delivered FPSO Armada TGT 1 and FSO Sepat to Bumi Armada. It is presently working with Bumi Armada on the D1 FPSO conversion project.

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.

- End -

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 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, shiprepair and conversion and specialised shipbuilding. Its near market, near customer strategy is bolstered by a global network of 20 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, the group aims to be the provider of choice and partner for solutions for the offshore and marine industry.

About SBM Offshore
SBM Offshore delivers offshore energy systems on a lease or sale basis to our clients worldwide through in-house engineering and project management expertise. Our activities include the design, supply, and offshore installation of facilities for the production, storage, and export of crude oil and gas, mainly Floating Production Storage and Offloading (FPSO) systems. SBM Offshore N.V. is an AEX (Amsterdam stock exchange) listed company.

About Bumi Armada
Bumi Armada Berhad (Bumi Armada) is the largest owner and operator of offshore support vessels in Malaysia and is an established and trusted service partner in the oil and gas industry. The Company has established a strong position in FPSO systems, a growing Transport & Installation business and competency in management of large projects. For more information, please refer to: www.bumiarmada.com

For more information, please contact: