28 Jun 2012

Keppel yards in U.S. and Azerbaijan secure projects for US$70 million

Keppel Offshore & Marine's (Keppel O&M) yards in the U.S. and Azerbaijan have secured contracts worth a total of about US$70 million.

In the US, Keppel AmFELS LLC, has secured a contract from Transocean Offshore Deepwater Drilling Inc. (Transocean) to repair and upgrade the semisubmersible (semi) rig Sedco 707.

Scheduled to arrive at Keppel AmFELS in July 2012, Sedco 707's major scope of work includes steel renewal of the hull, repair of the thrusters, refurbishment of the living quarters as well as electrical and piping replacement work. The semi is expected to depart in 1Q 2013and return to work in offshore Brazil.

Mr Tan Geok Seng, President of Keppel AmFELS added, "We thank Transocean for their trust and confidence in us and look forward to delivering another successful project to them safely and on time. Having built a long term relationship with Transocean, we are attuned to their needs and committed to support them in the renewal of their fleet.

"While we have a healthy base load of new builds, we have the capacity and expertise to undertake various repair projects which constitute an important part of our business. We are well positioned to support operators requiring efficient repairs in the region."

The Sedco 707 is a self-propelled, twin-hulled semisubmersible drilling unit with eight thrusters designed to work in water depths of up to 6,500 feet. She has been working off the coast of Rio de Janeiro, Brazil.

Separately, Keppel O&M's shipyard in Azerbaijan, Caspian Shipyard Company (CSC) has also secured a contract to build a floating dock for Baku Shipyard LLC (BSC).

Expected to be completed in 4Q 2013, the floating dock will be 168 metres by 50 metres and equipped with two sets of 25 tonne Jib Cranes. It will have a maximum docking weight of 9,000 tonnes with a maximum docking draft of 6.5 metres.

CSC's scope of work includes steelworks construction and the fabrication of the hull structure while BSC will provide overall project management. This arrangement will expedite the construction of the floating dock and demonstrates the synergy of Keppel O&M's shipyards.

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

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About Keppel AmFELS

Keppel AmFELS LLC is a subsidiary of Keppel Offshore & Marine Ltd, a wholly-owned company of Keppel Corporation Limited. Located in Brownsville, Texas, Keppel AmFELS reinforces Keppel O&M's presence in the Gulf of Mexico and its strategy to be near its markets and customers.

Since its establishment in 1990, Keppel AmFELS has built up its facilities and equipment to become the most well equipped offshore shipyard in the Gulf of Mexico. The yard engages in the construction, refurbishment, conversion, life extension and repair of a complete range of mobile drilling rigs and platforms. Spread over 165 acres, its comprehensive facilities are world class and include a drydock capable of docking the largest semisubmersible drilling units, and a modern steel processing plant.

About Caspian Shipyard Company

Caspian Shipyard Company (CSC) in Azerbaijan is the first international rig construction, repair and conversion yard in the Caspian Sea region servicing the offshore oil and gas industry. CSC is a partnership between Keppel FELS, the State Oil Company of Azerbaijan Republic (SOCAR) and Lukoil Trade House.

Having completed many world-class projects including jackup and semisubmersible rigs, pipelay vessels, barges and pipe rack structures, CSC has established itself as the most versatile and reliable offshore solutions partner in the Caspian Region.

About Baku Shipyard

Baku Shipyard LLC (BSC) is a joint-venture shipyard between Keppel O&M, the State Oil Company of Azerbaijan Republic (SOCAR) and Azerbaijan Investment Company (AIC) which have a 10%, 65% and 25% share of the yard respectively.

To be completed in 4Q2013, the new 52-ha shipyard is designed to undertake construction of a variety of vessels ranging from offshore support vessels to tankers, as well as ship repair and conversion.

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