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14 Dec 2006

Keppel Singmarine secures S$135 million contract for its first FSO vessel

Keppel Singmarine Pte Ltd (Keppel Singmarine) has clinched a S$135 million contract to build a Floating Storage Offloading system (FSO) unit for LUKOIL –NIZHNEVOLZHSKNEFT (LUKOIL-NVN), a subsidiary of the Russian oil company, LUKOIL Oil Company.

The 28,000 tonnes (dwt) Ice-Class FSO is a new design by Marine Technology Development Pte Ltd (MTDTM), the design arm of Keppel Singmarine.

Mr Hoe Eng Hock, Executive Director of Keppel Singmarine, said, “This is our first floating storage and offloading system (FSO) newbuild.

“She is a follow-through of our strategy to enhance our design and construction capabilities and expand into related product lines in sync with the demand in the offshore logistic market.

“This FSO is designed for operations in cold temperatures up to minus 20 deg Celsius in ice thickness of 60cm. As the development of oil and gas fields in harsh environments such as the Caspian Sea and the Arctic Circle gathers pace, we are allocating resources and expertise to become the provider of choice for customers seeking innovative solutions in specialized ice-class vessels to operate in difficult weather conditions.”

The MTD13028FSO-IC FSO is designed with provisions for forecastle deck structure for single point mooring, with double bottom and double sides, with habitable deckhouse and Cargo Oil Control Station (COCS), machinery space and helipad in the aft of the vessel.

She is meant for uninterrupted services in receiving crude oil from a stationary production platform through single buoy mooring system, storage of oil on board and finally offloading of oil to shuttle tankers.

The growing demand for oil and gas all over the world has encouraged Russian energy sector to expand its oil and gas development, production and exports.

Scheduled for delivery in the first quarter of 2009, the non-propelled FSO unit will be deployed to the Caspian Sea where it will receive and store incoming crude oil and offload it to shuttle tankers.

Keppel Singmarine, a wholly-owned subsidiary of Keppel Corporation Limited through Keppel Offshore & Marine (Keppel O&M), is the specialised shipbuilding arm. Since the early 1970s, the company has designed and built more than 300 small to medium-sized vessels including AHTS, multi-purpose support vessels and tugboats for a worldwide clientele.

Keppel O&M’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, the group aims to be the provider of choice and partner in solutions for the offshore and marine industry.

LUKOIL- NIZHNEVOLZHSKNEFT is a fully-owned subsidiary to LUKOIL Oil Company, a leading Russian oil company with main activities in oil and gas exploration and production, and production and sale of petroleum products. Lukoil –Nizhnevolzhskneft (NVN) is involved in the exploration, development and production of oil and gas in Southern Russian Federation of Volgograd Astrakhan and Caspian Sea. It is also a partner in the joint exploration for oil and gas in the Azov Sea.

The contract is not expected to have material impact on the NTA or the earnings per Keppel Corporation Limited share for FY2006.

For further information, please contact:

Sarah Seah
Deputy General Manager
Keppel Group Corporate Communications
Tel: (65) 64136 420