P-52 lower hull arrives in Brazil Keeping a promise sound

P-52 lower hull arrives in Brazil

Keeping a promise sound

OffshoreSix new jackup orders

Deep Driller 2 completed

MarineTies with Qatar strengthened

FPSO Capixaba delivered

A publication of Keppel Offshore & MarineMITA (P277/03/2003)March/April 2006

2 OffshoreMarine March/April 2006

Keppel O&M makes waves at Asia Pacific Page 13Maritime Exhibition

Keppel at OTC 2006Visit Keppel Offshore & Marine (Keppel O&M) atthe Offshore Technology Conference (OTC), to beheld in Houston from 1-4 May 2006.

Keppel O&M is at booth number P10617 in theSingapore Pavilion (Pavilion 1).

Drop in also at Keppel FELS Brasil’s booth underthe Brazilian Pavilion at 4741 and FloaTEC’s standat 1663.

Themed “New Depths, New Horizons”, OTC 2006will be larger with extensions to the exhibition spaceoffered in Reliant Centre, Houston.

Teamwork among Keppel yards Page 10

Editorial AdvisorChoo Chiau Beng

EditorLai Ching Chuan

Assistant EditorSarah Seah

Sub EditorYang Sook Chin

Committee membersMichael Chia, Nelson Yeo, Hoe Eng Hock,Yeong Wai Seng, Dr Foo Kok Seng,Jaya Kumar, Quek Mong Song, David Loh,Chin Sze Kiun

ContributorsAndrew Ong, Grace Chia, Lee Yin Chiin,Kristin Nonis

OffshoreMarine is a bi-monthly publication ofKeppel Offshore & Marine Ltd50 Gul Road, Singapore 629351Tel: (65) 6863 7200Fax: (65) 6261 7719/6265 1927

Company registration no. 199900642R

Editorial Board

F E A T U R E S

GSF orders ultra-deepwater semi 3

Jacking up to new heights 4

Strengthening ties with Qatar 8

Keppel yards join forces in fast-track upgrading 10

Keppel Nantong gears up for shipbuilding 12

Securing two Prosafe FPSO conversions 13

The next lap for P-52 16

KFELS Super B for the Xtreme drilling market 18

Double happiness for Keppel FELS Brasil 20

Keeping a promise sound 24

Keppel Shipyard delivers FPSO Capixaba 36for SBM

OffshoreMarine March/April 2006 3

K eppel FELS has secured acontract with GlobalSantaFeCorporation (GSF) to build

an ultra-deepwater drilling rig forUS$270 million.

Under the contract agreement, GSF willsupply the drilling and sub-sea equipmentwhile Keppel FELS provides the design,engineering and construction of the hullas well as the accommodation quarters for180 men and marine equipment.

The rig, GSF Development Driller III, isscheduled for delivery in the first quarterof 2009.

GSF has chosen to build the state-of-the-art semisubmersible (semi) to theproprietary design, DSS-51, jointlydesigned and developed by Keppel’sDeepwater Technology Group (DTG)

GSF orders ultra-deepwater semiand Marine Structure Consultants(MSC).

Choo Chiau Beng, Chairman & CEO ofKeppel Offshore & Marine (KeppelO&M) said, “GSF and Keppel share alongstanding relationship which datesback to 1987. Keppel FELS and GSF haveco-operated and completed six newgeneration jackups that are stillperforming extremely well in the NorthSea, Eastern Canada and South America.

“I am happy that we are now working onour first semi newbuild project together,and I am confident that the highly efficientDSS-51 rig will meet GSF’s chartercommitment on time and within budget.”

Commenting on the demand fordeepwater mobile drilling rigs, Chooadded, “The fundamentals for deepwater

exploration and production are strongwith consensus amongst operators,drillers and service providers that themarket for exploration and production ofhydrocarbons will be sustained over thenext few years.”

According to ODS-Petrodata’s 12-monthly rolling forecast betweenFebruary 2006 and January 2007, thedemand for semis is expected to rise from141 to 167 units while the marketedsupply remains inelastic from 152 to 153.Even as utilisation levels approach fullcapacity, global demand for the mobileoffshore drilling units shows no sign ofslowing down.

Said Jon A. Marshall, President & CEOof GSF, “We are looking forward toworking again with Keppel FELS on ournewbuild semi. Keppel FELS has a trackrecord of well designed and built rigs thathave been delivered on schedule.

“In the last few years, GSF has sent anumber of rigs to Keppel for repair andupgrading. They have been veryresponsive and professional. I am certainthat the new semi will be a great additionto our fleet.”

GlobalSantaFe’s latest ultra-deepwater semisubmersible,DSS-51, is an enhancementof the succesful DSS-20 rig,Maersk Explorer, built byKeppel FELS and CaspianShipyard Company

The DSS-51 rig is maintenance-friendly with excellent safety featureswell suited for both exploration anddevelopment drilling as well asworkover operations.

With a dynamically positionedsystem (DPS 2), it can drill wellsdown to 10,000 m (30,000 ft)and operate in water depths ofup to 3,048 m (10,000 ft) inenvironments such as offshoreBrazil, the Gulf of Mexico, WestAfrica and South East Asia.


Three rigs for India

K eppel FELS made its first entryinto India with two consecutivenew orders from the Jindal

Group in India.

The first contract was secured from itsassociate, Discovery Hydrocarbons PvtLtd, to build a KFELS B Class jackupvalued at US$171 million. The rig is duefor delivery in fourth quarter 2008.

Said Sam Malhotra, Director of DiscoveryHydrocarbons Pvt Ltd, “We are glad towork with Keppel FELS for our firstnewbuild jackup. Keppel FELS has a

Jacking up to new heightsWithin the first 12 weeks of 2006, Keppel FELS received orders for the construction offive KFELS B Class jackup rigs. With these contracts, the total number of KFELS B Classrigs being built by Keppel FELS is 20, with one currently under construction atKeppel AmFELS. These orders further entrench the KFELS B Class design as thebenchmark for premium rigs in offshore drilling.

contract, Keppel O&M is poised toentrench its footprint in the offshoreIndian market as well.”

“We are glad to partner DiscoveryHydrocarbons as it grows their fleet of rigsto provide solutions for the offshoremarket internationally.”

In the same month, a second order for aKFELS B Class jackup rig valued atUS$184 million was signed with JindalPipes Limited. It includes the design,engineering and construction of the rigas well as costs in getting the rigoperationally ready.

commendable track record in design,construction and timely delivery ofjackups. Their KFELS B Class, a tried andproven design in many offshoreenvironments, has been verified to meetour drilling needs.

“We look forward to developing andstrengthening our partnership withKeppel FELS as we serve the Indian andinternational offshore market.”

Tong Chong Heong, MD/COO of KeppelOffshore & Marine (Keppel O&M), said,“The Indian Ocean which has significantoil and gas reserves is one of the world’smost sought-after areas. With this new

Keppel FELS rises to the challenge



The rig is due for delivery in end 2008.

The two Jindal rigs have been customisedto meet the owner’s operational needs inwater depths of up to 350 feet and readilyupgradeable to 400 feet. The rigs will havea drilling depth capability of 30,000 feetand can accommodate 112 persons.

They are suited for deployment inenvironments such as the Indian Ocean,Gulf of Mexico, West Africa and SouthEast Asia.

Mercator Lines Ltd (Mercator) is thesecond Indian customer to sign up withKeppel FELS for the construction of itsfirst jackup rig for US$180 million. Thisincludes the design, engineering andconstruction of the rig as well as costs ingetting the rig operationally ready.

To be delivered in first quarter 2009, thenew rig will be built to Keppel’sproprietary KFELS B Class jackup design.It will be further customised to meet theowner’s operational requirements in waterdepths of up to 350 feet and readilyupgradeable to 400 feet. This premiumjackup rig will have a drilling depth of30,000 feet and can accommodate 112men.

Said Atul J. Agarwal, Joint ManagingDirector of Mercator, “As we expand ourservices into offshore rigs, we recognisethe importance of working with the rightshipyard for our first jackup. We believe

that Keppel FELS, with their track recordin the design and construction of rigs, isthe right choice to help us to offerpremium services.”

Tong said, “Keppel is glad to partnerMercator in their vision of expanding intothe offshore exploration and drillingsector. We are committed to help themmeet expectations as a long-term oil andgas player.“

This rig is not the first project theKeppel O&M group has undertaken forMercator, which is the second largestprivate sector shipping company in India.

Keppel had undertaken the fast-trackconversion of a Floating Storage andOffloading (FSO) vessel, FSO Devsi, forMercator in 2004. The vessel is nowgainfully deployed in the Indian Ocean.

Third jackup for Awilco

Keppel FELS has secured a repeat orderfor a third KFELS B Class jackup rigfrom Awilco Offshore (Awilco) atUS$146 million, via the exercise of anoption agreement.

The first and second rigs wereannounced in February and August 2005respectively.

Customised to Awilco’s requirements, thenew rig, WilStrike, will be capable of

Continued on page 6 �

drilling down to 30,000 feet in waterdepths of up to 400 feet. Delivery for thisnew rig is expected in second quarter2009.

Work on the first two rigs, WilCraft andWilBoss, is progressing well. Deliveries areexpected in fourth quarter 2006 and early2008 respectively.

Seadrill orders fourth rig

Keppel FELS has secured a US$132 millioncontract from a wholly-owned specialpurpose company of SeaDrill Limited(SeaDrill) for a KFELS B class jackuprig.

Delivery of this new order is expected inthe second quarter of 2008.

This order was secured via an option givento Odfjell Partners Ltd (Odfjell) when itordered its first rig in March 2004. Odfjellplaced an order for its second rig in March2005. In mid 2005, SeaDrill acquiredOdfjell Invest Ltd. and was given the rightto exercise Odfjell’s option with KeppelFELS.

John Fredriksen, Chairman of SeaDrill,commented, “We are delighted to havesigned another newbuilding contractwith Keppel FELS. A competitive price, agood delivery position and a very capableyard, makes this into a solid financial deal.The ordering of the unit furtherstrengthens SeaDrill/Smedvig ASA’sposition as a serious and committedowner and operator of modern high enddrilling equipment”.

SeaDrill is also affiliated to Cyprus-registered Seatankers Management Co.Ltd (Seatankers), which had earlier placedone jackup order with Keppel FELS.Ownership of this rig has been assignedto SeaDrill.

Alexander Krafft (right), Senior Vice President of Awilco Offshore, and MichaelChia, Executive Director of Keppel FELS, inking Awilco’s third jackup rig order


KFELS B Class track recordNo Yard Customer Rig Name Expected Delivery

Delivered1 Keppel FELS ENSCO International Incorporated (ex-Chiles Offshore Inc.) ENSCO 104 Delivered2 Keppel AmFELS ENSCO International Incorporated (ex-Chiles Offshore Inc.) ENSCO 105 Delivered3 Keppel FELS Atwood Oceanics Atwood Beacon Delivered4 Keppel AmFELS Perforadora Central SA de CV Tonala Delivered5 Keppel FELS ENSCO International Incorporated ENSCO 106 Delivered6 Keppel FELS Abu Dhabi’s National Drilling Company (NDC) AL-HAIL Delivered7 Keppel FELS ENSCO International Incorporated ENSCO 107 Delivered

Currently under construction8 Keppel FELS Sinvest (DDI) Deep Driller 2 2Q 069 Keppel FELS SeaDrill Management SEADRILL 3 2Q 06

10 Keppel FELS Gulf Drilling International (GDI) GULF 4 3Q 0611 Keppel FELS Sinvest (DDI) Deep Driller 3 4Q 0612 Keppel FELS Awilco (Premium Drilling) WilCraft 4Q 0613 Keppel FELS ENSCO International Incorporated ENSCO 108 1Q 0714 Keppel FELS Petrovietnam Drilling & Well Services Company (PV Drilling) To be named 1Q 0715 Keppel FELS SeaDrill Management SEADRILL 4 2Q 0716 Keppel FELS SeaDrill Management SEADRILL 1 3Q 0717 Keppel FELS Sinvest (DDI) Deep Driller 5 3Q 0718 Keppel FELS Gulf Drilling International (GDI) GULF 5 4Q 0719 Keppel FELS Awilco (Premium Drilling) WilBoss 1Q 0820 Keppel FELS Diamond Offshore Ocean Shield 1Q 0821 Keppel AmFELS Diamond Offshore Ocean Sceptor 1Q 0822 Keppel FELS Awilco (Premium Drilling) WilStrike 2Q 0823 Keppel FELS SeaDrill Management To be named 2Q 0824 Keppel FELS Discovery Hydrocarbon Pvt Ltd To be named 3Q 0825 Keppel FELS Sinvest (DDI) Deep Driller 6 3Q 0826 Keppel FELS Discovery Hydrocarbon Pvt Ltd To be named 4Q 0827 Keppel FELS Sinvest (DDI) Deep Driller 8 1Q 0928 Keppel FELS Mercator Lines Ltd To be named 1Q 09

With these developments and including the latestcontract, Keppel FELS will, to date, be buildingfour jackup units for SeaDrill.

Like the three jackups, this new rig will be of theKFELS B Class design. It is capable of operating inwater depths of up to 400 feet, drilling depth of30,000 feet and accommodating 112 men.

Said Choo Chiau Beng, Chairman & CEO ofKeppel O&M, “We are glad to participate inSeaDrill’s vision of building a fleet of premiumdrilling rigs. We are committed to deliver on timeand on budget the four KFELS B class jackup rigswhich have a proven track record of highlysuccessful operation in different parts of the world.”

Work on SeaDrill’s first three rigs is progressingwell at Keppel FELS yard. The first rig, SeaDrill 3,is scheduled for delivery in May this year. Upondelivery, she will be chartered to TOTAL in Nigeriaat a rate of US$166,000 per day for two years.

The KFELS B Class jackup rig design is the market standardfor premium drilling rigs

� Continued from page 5


A firm partnership betweenC. Y. Ho, President/CEO ofKeppel AmFELS (left) andAlan Quintero, GeneralManager (Engineering) ofAtwood Oceanics

K eppel AmFELS Inc. announced on3 March 2006 that its contract with awholly-owned subsidiary of Atwood

Oceanics Inc. (Atwood) for the construction ofa new jackup rig has become effective.

This contract follows the Letter of Intent signedbetween the two companies announced on7 February 2006.

The rig, excluding Owner FurnishedEquipment, is valued at US$110 million and isdue for delivery in the third quarter of 2008.

Said Ho Cheok Yuen, President and CEO ofKeppel AmFELS, “We are glad that Atwoodrecognises our ability to deliver solutions ontime and on budget. I am certain that whendelivered, this new rig will be a great additionto Atwood’s fleet of rigs.”

This new rig will be built to the LeTourneauSuper 116E design, with leg lengths of 477 feet(and can be upgraded to 511 feet), and capableof drilling wells up to 30,000 feet deep in waterdepths of 350 feet.

Jackup order from Atwood

John Irwin, President of Atwood Oceanics, said“Atwood and its affiliates are pleased to havethe opportunity to work with Keppel AmFELSon this jackup project. Keppel AmFELS has along established reputation as a strong shipyardwith extensive experience in the constructionof ultra-premium jackup drilling units.”

This is Keppel’s second jackup for AtwoodOceanics in three years. The last rig, AtwoodBeacon, was delivered ahead of schedule byKeppel FELS in 2003.

B OURBON Artemis, an AnchorHandling Tug/Supply (AHTS)vessel with 120 tonnes of bollard

pull, is the fourth of seven vesselsKeppel Singmarine has delivered to theproud owner, BOURBON Offshore(BOURBON).

G o d m o t h e r A n n e - Ay m o n e d eChateauvieux, wife of Henri deChateauviex, a Director of BOURBON,

Bourbon AHTS deliveredgraced the christening ceremonyon 22 February 2006 held at KeppelSingmarine.

A sister vessel to three earlier AHTSvessels, BOURBON Aladin, BOURBONApsara, and BOURBON Alexandre, thismedium-size vessel is designed and fittedwith a Class I dynamic positioning (DP)system, firefighting system, withcapabilities to be upgraded for standby/service duties and DP Class II.

All the three subsequent vessels forBOURBON are expected to be deliveredlater this year.

BOURBON Artemis displaying herprowess during the sea trial


Offloading systems, and the constructionof specialised ships, such as offshoresupply vessels.”

The yard will also be suitable, with someadditional investment, for the fabricationof structures for the offshore oil and gasindustry (such as jackup drilling rigs,process modules and decks, jackets,wellhead decks, flare booms, etc.), andthe fabrication of components for land-based petrochemical and industrial plant.Additionally, the facility will provide life-cycle support in all the markets it serves.

Planning of the new yard is already wellunderway, and completion of the firstphase of development is scheduled forthe fourth quarter of 2009.

Drydocking LNG Carriers

In the same vein, Keppel Shipyard hasstrengthened its customer base in theMiddle East through its latest AllianceService Agreement for the drydocking ofa fleet of Moss Rosenburg (MOSS) typeof Liquefied Natural Gas (LNG) carrierschartered by Qatar Liquefied GasCompany Ltd (Qatargas).

Strengthening ties with Qatar

In keeping with its “near customer,near market” strategy, Keppel O&Mhas relentlessly expanded its yard

network connection and strengthened itscustomer base in the Middle East.

With its specialised facilities and expertisein the repair of LNG carriers, KeppelShipyard is well positioned to support thegrowing market for natural gas.

Tong Chong Heong, Managing Directorand Chief Operating Officer of KeppelO&M, said, “For some time, we have beenservicing LNG carriers for Qatar. We arepleased to deepen our relationship andpartner with NAKILAT in this significantnew venture, which is in line with our“near market, near customer” strategy.”

Joint venture for new shipyard

Through partnering with Qatar GasTransport, Keppel O&M has taken afirst step in making its presence in thefast-growing economy of Qatar.

Keppel O&M has signed a letter of intentwith Qatar Gas Transport Company Ltd.(QGTC/NAKILAT) to jointly developand manage a major new facility in thePort of Ras Laffan, Qatar, for theconstruction, repair and maintenance ofships and other marine structures.

Conclusion of the joint venture agreementis subject to approval by the Boards ofDirectors of NAKILAT and Keppel O&M.

Faisal Al-Suwaidi, Vice Chairman ofNAKILAT, said, “The new facility will bedesigned and constructed in accordancewith best international practice, andsuitable for the repair and maintenanceof very large LNG carriers and a widerange of other vessels; the conversion oftankers to Floating Production Storage &Offloading and Floating Storage &

The five-year agreement was signed withMO LNG Transport Co., Ltd (MOL),Nippon Yusen Kaisha Ltd (NYK) andKawasaki Kisen Kaisha Ltd (K-Line).

“There is a growing demand for naturalgas worldwide, particularly in Asia andthe US. Keppel Shipyard is well-positioned to support the growing LNGcarriers market which is expected to trebleby 2020,” said Nelson Yeo, ExecutiveDirector, Keppel Shipyard.

The vessels under the fleet agreement areAl Zubarah, Al Khor, Al Rayyan, Al Wajbah,Broog, Zekreet, Al Wakrah, Doha, Al Bidda,and Al Jasra. Keppel Shipyard has beenservicing this fleet of LNG carriers forQatargas since 1999.

The scope of work involves drydockingfor survey, maintenance and repair.

The first two vessels scheduled to call atKeppel Shipyard under this agreement areAl Wakrah (72,453 dwt) and Zekreet(72,316dwt) in early May this year. It willbe the third drydocking in KeppelShipyard for both vessels.

Serving Qatargas fleet since 1999


Keppel FELS has secured a contract fromDiamond Offshore Drilling, Inc.(Diamond Offshore) for the major

upgrading of semisubmersible rig (semi) forUS$102 million.

Ocean Monarch will arrive Keppel FELS in mid2006 for the upgrading and is expected to beoperationally ready in fourth quarter 2008.

When completed, Ocean Monarch can operatein up to 10,000 ft of water in a mooredconfiguration. It will be among the mostmodernised and competent of Diamond’s fleetof upgraded Victory-class semis.

This will be the fourth in a series of fifthgeneration Victory-class upgrades that Keppel

Keppel shines fourth semi forDiamond

FELS has undertaken for Diamond Offshore.The first three semis are Ocean Baroness, OceanRover and Ocean Endeavor. The latter is currentlyundergoing upgrading works at Keppel FELSand is scheduled for completion in fourthquarter 2006.

Keppel FELS is currently undertaking theconstruction of one jackup rig for DiamondOffshore. Its sister company, Keppel AmFELSis also building a jackup rig for the samecustomer. Both rigs are of the proprietary KFELSB Class jackup design from the R&D arm ofKeppel.

Diamond Offshore provides contract drillingservices to the energy industry around the globeand is a leader in deep water drilling.

Ocean Monarch will beupgraded to a

fifth-generation Victoryclass drilling rig like

Ocean Baroness andOcean Rover

OffshoreMarine March/April 2006 9OffshoreMarine March/April 2006 9


K eppel FELS has secured aUS$177 million contract for theupgrading of a semisubmersible (semi)

drilling rig Blackford Dolphin for BlackfordDolphin Pte Ltd, a wholly-owned subsidiary ofFred Olsen Energy ASA.

Blackford Dolphin, the former Ocean Liberatorbuilt in 1974, will undergo fast-trackrefurbishment and have her life span extendedfor 20 years. When completed, the upgradeddrilling unit will have drilling depth capabilitiesincreased from 600ft to 7,000ft water depth,

Keppel yards join forces infast-track upgrading

Blackford Dolphin arrives at Keppel Verolme in March 2006

“To meet the tight delivery schedule, Keppel FELS will leverageresources from sister yards to carry out the job simultaneously.

In so doing, we are able to satisfy our customers’ needs in a fasterand more cost-efficient manner.”

Tong Chong HeongManaging Director/Chief Operating Officer

Keppel Offshore & Marine

Keppel Verolme

Arab Heavy Industries

Keppel FELSKeppel Shipyard


enabling her to operate in deepwaterenvironments worldwide.

To meet the quick turnaround delivery byend June 2007, the project will beundertaken jointly by Keppel FELS andKeppel Shipyard in Singapore, KeppelVerolme in The Netherlands and Arab HeavyIndustries in the Middle East.

Said Tong Chong Heong, ManagingDirector/Chief Operating Officer of KeppelOffshore & Marine (Keppel O&M), “This isa fast-track upgrading project and KeppelFELS is glad to partner Fred Olsen in offeringinnovative field development solutions.

“To meet the tight delivery schedule, KeppelFELS will leverage resources from sisteryards to carry out the job simultaneously.In so doing, we are able to satisfy ourcustomers’ needs in a faster and more cost-efficient manner.”

Keppel Shipyard, Keppel Verolme and ArabHeavy Industries will be responsible for thefabrication of the lower and upper hullstructures and modules. Keppel Verolme willundertake the overall integration of thestructure and modules as well as carry outthe repairs and maintenance works on thesemi.

Commenting on the strategy, Tong said,“By integrating the expertise and experienceof our yards, we make the best use of ouravailable resources to provide maximumvalue to our customers.”

Said Helge Haakonsen, Chief ExecutiveOfficer of Fred Olsen Energy ASA, “Bychoosing a yard with a proven track recordfor delivering major drilling rig conversionson time and within budget, Fred OlsenEnergy aims to ensure availability of theupgraded rig to the market during thirdquarter 2007.”

K eppel FELS delivers ENSCO 56 to long time customer ENSCO onschedule.

In October 2005, ENSCO contracted Keppel FELS for a fast-track repair jobon ENSCO 56. After a four-month stay in the yard, the F&G Mod 2 jackuprig was ready for its next assignment in New Zealand.

The project scope included upgrading of the drill floor and cantilever systems,above its steel repairs, painting works and installation of additional livingquarters. Due to its extensive job scope, the Keppel project team was facedwith a very tight schedule.

Rising to the challenge, Senior Project Manager, Wilson Goh and his projectteam began planning for the project before the rig even arrived.

Rig inspections offshore prior to the rig’s arrival at the yard allowed theproject team to assess the job scope and look into the engineering details.Once the necessary assessments were made, material procurement and pre-fabrication works were carried out.

Upon its arrival, the project team swiftly launched in to action.

The completion of this repair project marked the first repair project withENSCO’s new Project Manager, Ron Couet.

He said, “Although this was my first repair project with Keppel FELS, weshared an excellent working relationship. The strong relationship has neverchanged. I remember how strong it was when I was first here in 1996.Through this project, I can understand why ENSCO and Keppel FELS haveenjoyed such a long standing relationship. I am looking forward to ourfuture projects together.”

ENSCO 56 readyfor assignment

ENSCO 56 departsKeppel FELS’ yard asscheduled, ready for itsnext assignment.


W ith the number of contractssecured by Keppel O&Mincreasing steadily, sister

yards in Keppel’s global network aregearing up to share the workload.

At Keppel Nantong Shipyard, renovationand refurbishment works have alreadybeen completed and the yard hascommenced construction works for theoffshore support vessels (OSVs) undercontracts clinched by Keppel Singmarine.

New facilities and equipment such ascranes and steel-plate cutting machineshave been added. The yard first strucksteel for the vessels in March 2006.

Keppel Nantong Shipyard is currentlybuilding four Anchor Handling Tug/Supply (AHTS) vessels for owner HadiOffshore Pte Ltd., a newly establishedSingapore subsidiary of Saudi Arabiancompany, Hadi H. Al-Hammam

Keppel Nantong gears upfor shipbuilding

Establishment, and two AHTS vessels forGulfmark Offshore, Inc.

The vessels are expected to be deliveredprogressively from third quarter 2007 tillthe third quarter of 2008.

Management share the capabilities and facilities with guestsfrom Gulfmark Offshore

First strike steel

On 20 February 2006, the yard welcomedrepresentatives from Gulfmark OffshoreInc., Keppel Singmarine’s long-timecustomer, who were pleased with theenvironment and capabilities of the yard.

Geared up for newbuildings of OSVs at Keppel Nantong Shipyard


Keppel Shipyard has been awardedtwo contracts valued atapproximately S$130 million for

the conversion of two Floating ProductionStorage and Offloading (FPSO) facilitiesfor Prosafe Production (Prosafe).

A leading owner and operator of FPSOand FSO facilities, Prosafe has in the lastnine years entrusted Keppel Shipyardexclusively to carry out the conversion ofall their FPSO and FSO systems.

With the two latest FPSO/FSOconversions projects, the number of suchprojects carried out by Keppel Shipyardfor Prosafe will add up to eight since 1997.

Said Nelson Yeo, Executive Director ofKeppel Shipyard, “We are delighted withthe trust and confidence that Prosafe hasin Keppel Shipyard. We will continue tofocus on fast track conversions to furtherstrengthen our market position.”

Added Hugh Parry, Managing Director ofProsafe, “We have entrusted KeppelShipyard with the conversion of a numberof sophisticated FPSO projects due totheir strong track record. We haveconfidence in their reliable and qualityservice.”

The first award is for the conversion ofthe 25-year old tanker, M.T. Apollo, intoan FPSO capable of handling a daily oilproduction of 90,000 barrels of oil perday (bopd), daily fluid capacity up to150,000 barrel of fluid per day (bfpd) andhaving a storage capacity of 1.78 millionbarrels of oil.

The workscope for the 257,865 dwttanker will include the fabrication and

Securing two ProsafeFPSO conversions

installation of the internal turret, flaretower and helideck; integration ofproduction skids, boilers and turboalternators and renewal of bottom plates,as well as internal tank blasting andpainting.

Upon delivery in end 2006, the facilitywill be deployed in Polvo Field off Brazilfor Devon Energy.

The second award is for the conversionof a Suezmax tanker, a 25-year old tanker,M.T. Ionikos, into an FPSO capable ofhandling a daily production of 50,000bopd, daily fluid capacity up to 120,000bfpd and having a storage capacity of770,000 barrels of oil.

Work on the vessel will include thefabrication and installation of the internalturret, flare tower and helideck;integration of production skids, boilers

and turbo alternators; renewal of bottomplates, and internal tank blasting andpainting.

Due for completion in first quarter 2007,the FPSO facility will be deployed at theTui Field located in the Taranaki Basin,offshore New Zealand for New ZealandOverseas Petroleum Ltd.

Keppel Shipyard is the world leaderin FPSO/FSO conversions, havingcompleted 59 FPSO/FSO conversionsand upgrading projects since 1981. It isalso the leading yard in shiprepair andother vessel conversions as well as LNGrepairs.

An innovative supplier of products andservices in niche areas in the globaloffshore oil and gas industry, Prosafe is aleading owner and operator of FPSO/FSOvessels outside the North Sea.

Keppel Shipyard has completed six FPSO/FSO conversions, includingABO FPSO, for Prosafe since 1997


LNG carriers drydock atKeppel Shipyard

K eppel Shipyard (Benoi) was bustlingwith action with the first two LNGvessels, Hoegh Gandria and

S.T Ekaputra, at the yard for the year.

Hoegh Gandria, the 1977-built vessel with agross tonnage and deadweight tonnage of96,011 and 66,999 respectively, entered theyard on 25 February 2006.

Extensive cable renewal of more than 16,000 min length, main turbine overhauling andinsulation works were carried out. Completedin record time of one month, Keppel earnedpraises from the vessel’s owner, Hoegh FleetServices A S (Oslo, Norway) as well as itsoverseas specialists who had worked on thevessel during her time in the yard.

Joining her, S.T Ekaputra arrived at Benoi Yardon 10 March 2006 for her fifth dry-docking inKeppel since the 1990s. This Moss-type vesselwith a gross tonnage of 109,258 and total tankcapacity 138,369 m3 was built in 1990 byMitsubishi Heavy Industries Ltd for its owners,Cometco Shipping Inc (Monrovia, Liberia).

Managed by Humolco Trans Inc (Jakarta,Indonesia), Ekaputra was drydocked for10 days during which she underwent repairworks, including the installation of 418 bottlesof carbon dioxide fire extinguishing system,re-varnishing and overhaul of cargo pumps,low and high duty compressor overhaul, LPmain turbine overhaul and installation ofoptical system (ESDS).

S.T Ekaputra left the yard for her scheduledtrading from Bontang (Indonesia) to Tung An(Taiwan) in early April while Hoegh Gandriaset sail for her loading port in Arun (Indonesia)end March 2006.

A regional leader in the repair of LNG carriers,Keppel Shipyard has recently been entrustedwith the job to carry out the conversion of afloating liquified natural gas storage and re-gasification unit. This conversion project forGolar LNG Limited is the first of its kind inthe world.

Hoegh Gandria and S.T Ekaputra


Batangas and Keppel Cebu are whollyowned by KPMI. Subic Shipyard is anassociate.

KPMI posts record profit

Keppel Philippines Marine (KPMI)registered consolidated sales revenue ofPhp 1.452 billion for the year 2005. Thisrepresented a 6% improvement over thatof the previous year.

The increase was attributed to thegood performance of its shipyards.Keppel Batangas Shipyard contributedPhp 885 million, of which 69% camefrom its shiprepair activities and the restfrom its shipbuilding contracts,recognised based on percentage ofcompletion.

K eppel O&M through itswholly-owned subsidiary, KSInvestments, has on 6 April 2006

acquired an additional 51.08% interest inKeppel Philippines Marine, Inc. (KPMI).

This was pursuant to KS Investments’tender offer made on 1 March 2006, andresulted in KS Investments’ interest inKPMI increasing from 29.47% to 80.55%.

This general offer is part of the KeppelGroup’s plan to consolidate its regionalinvestments in the marine industry underKS Investments.

KPMI operates three shipyards in thePhilippines: Keppel Batangas Shipyard(Keppel Batangas), Keppel Cebu Shipyard(Keppel Cebu) and Subic Shipyard andEngineering (Subic Shipyard). Keppel

Keppel now owns 81% of KPMI

To cater to growing demand for rigs, the facilities of Keppel Batangas Shipyard have been upgraded to undertake offshorework

Keppel Cebu Shipyard accounted forPhp 566 million, from shiprepair.

KPMI’s consolidated operating profitincreased by 56% to Php 232 million as aresult of improved margins and reducedcost.

Contributions from associates, especiallySubic Shipyard and Engineering,increased 121% from Php 25.7 millionto Php 56.8 million in 2005.

Pre-tax profit at Php 313 million andafter-tax profit at Php 252 million were 68%and 84% higher respectively comparedwith their corresponding results in 2004.


AnexceptionaljobDear Michael,

On behalf of Petrobras, I would liketo say that we are very pleased withthe exceptional job done by KeppelFELS. We have built up a verystrong partnership and that hascertainly helped us to achieve whatI call SUCCESS.

I would like to express mygratitude to those who have beenworking closely with the Petrobrasteam: Iqbal Rahuman and hisengineering team. Yew Ming Yeong;S Y Tan and their productionteam; Leow and his commissioningteam; Nonis; Marcus and the QAteam; W B Lim;Tan Ven Fu;Richard Tay; Chor How Jat; B HWoo; Yeong Wai Seng and manyothers.

Unfortunately, I can’t name all ofthem as the list would be very long.My sincere apologies for that.

Last but not least, a very specialthank you to Mr CB Choo and MrCH Tong.

Once again, thank you very muchto all of you. I’m looking forwardto work with Keppel FELS again.

Best Regards,

Flávio Siqueira JúniorP-52 Lower Hull ConstructionManager

Goodbye, Singapore

H aving successfully completedthe Singapore lap, the lower hullof P-52 left Keppel FELS for

Keppel FELS Brasil in Angra, Brazil, whereit will begin its next lap.

Dry-towed, P-52 left on 22 February 2006and embarked on an arduous journeybefore arriving in Brazil 35 days later.

Upon arrival, the lower hull will undergotopside integration to form one of theworld’s largest floating production units(FPU).

The P-52 FPU is being constructedusing cutting-edge construction andengineering techniques. After two yearsof sheer hard work and solid partnershipbetween the Keppel-led consortium andPetrobras, P-52 is well on its way tocompletion.

When deployed in the deepwaterRoncador field in the Campos basin in2007, the FPU will be able to produce180,000 barrels of oil a day.

Yeong Wai Seng, Senior Project Managerof Keppel FELS, who took the projectthrough the Singapore leg shared, “We areglad and relieved. Glad that it is a job welldone on our part, achieving greatengineering feats like the mating of thetwo sections of the lower hull.

“And we are relieved, knowing that weare passing the baton to our colleagues inKeppel FELS Brasil who are able to ensurethat Keppel’s stamp of quality will beevident anywhere in the world.”

The next lap for P-52The race to complete one of the world’s largest semisubmersible Floating Production Unit (FPU) the mission of delivering the lower hull of P-52 to Brazil.

The lower hull of P-52 rests on BlueMarlim – a dry-tow vessel – as it sets sailfor Brazil

P-52 bids farewell to Singapore


It took the yard two years of studies,evaluations and community activities toeducate local stakeholders of the natureand implication of the work.

Five environmental programmes weredeveloped to minimise possible impactson fishing and tourism activities in thearea.

A dredge solemnity-carrier was selectedto carry out the dredging by suction toensure minimal impact. The dumpingground is 35 miles off the coast and waschosen to ensure that the temporarydispersions of the materials duringdumping do not alter the transparency ofthe water at the beaches and tourist spots.

The dredging work and its completion ishighly significant to Angra dos Reis. It hassecured continual livelihood for 5,000residents from the town, who depend onthe consistent stream of work in BrasFELSshipyard.

For Keppel FELS Brasil, it enablesBrasFELS yard to carry out future megaprojects requiring deep draft, besides theimmediate movement of the P-52 and itstwin project the P-51 to and from the yard.

The construction of the P-52 FPU was firstclinched by 75:25 consortium of Keppeland Technip in December 2003.Innovative solutions and fulfilment of therequirements for local contents put forthby the Brazilian government were key tosecuring the US$775 million contract.

When completed, the P-52 FPU will stand34-storey high and 10 Olympicswimming pools wide. The platform willbe anchored in a depth of 1,795 metresin the Campos Basin, and will have thecapacity to produce 180,000 barrels of oilper day and 9.3 million m3/day of gas.

See pages 20 & 21 for more stories on P-51and P-52.

P-52 arrives at Keppel FELS Brasil’s BrasFELS yard in Angra dos Reis, Rio deJaneiro

Ahoy! Brazil

The lower hull of the semisubmersiblefloating production unit (FPU), P-52,arrived majestically in Brazil on 29 March2006.

The joy and jubilation wereoverwhelming at BrasFELS yard forthe historical moment of the passing ofbaton for the P-52 project from KeppelFELS in Singapore to the team on itshomeground.

The next lap of the race is now taken overby Keppel FELS Brasil for the completionof the deckbox, the complete topsides andthe living quarters, and Technip for theprocess engineering and marine mating.

The arrival of the P-52 lower hull atKeppel FELS Brasil’s BrasFELS yard inAngra dos Reis, Rio de Janeiro, marks amajor milestone towards the completionof P-52.

It also coincides with the successfuldredging of the Jacuecanga Channel infront of BrasFELS shipyard to allow accessand movement of the P-52.

Dredging began in early January 2006 toincrease the depth of the access channelto the wharf of BrasFELS yard to a depthof 11 metres, one km long and 200 metreswide.

Work on the Jacuecanga Channel startedonly after BrasFELS had received anenvironmental license from the Rio’s StateFoundation of Engineering andEnvironment (FEEMA) following athorough evaluation of the environmentalimpacts.

continues as Keppel FELS successfully accomplishes


One of the world’s most capabledrilling jackup rigs waschristened on 8 April 2006.

Named Deep Driller 2, the rig is the firstof a fleet of five jackup rigs that KeppelFELS is building for Sinvest ASA (Sinvest).

This milestone marks the successfulon-time completion of Deep Driller 2.

Built to the KFELS Super B design, DeepDriller 2 is an enhancement of the highlyacclaimed KFELS B Class design. The rigis developed to the owner’s specificationsand marks another achievement inKeppel’s design and engineeringcapability.

When delivered, the state-of-the-artSuper B will be deepest drilling rig inwater depths of 350 feet. It is capable ofdrilling down to 35,000 feet. It is alsodeveloped to withstand high pressure andhigh temperature conditions duringoperations.

Said Bjarne Skeie, Chairman of Sinvestand Deep Drilling Invest (DDI), “With thecapabilities of drilling deep wells, longhorizontal wells and deep down to35,000 feet, this jackup is the only jackupin the world which has all thesecapabilities in one unit. It is prepared forthe extreme drilling market.”

A job is already waiting for the rig. Uponits delivery, Deep Driller 2 will go to BruneiShell Petroleum Company for deploymentoffshore Brunei Darussalam.

Necessity creates brilliance

This solution for the extreme drillingmarket was formed out of necessity.

Bjarne saw a need to offer a product witha creative feature in anticipation of anupturn in the drilling services marketwhich was then in the troughs in early

KFELS Super B for the X

2003. With a brilliant concept in hand,he came to Singapore and approachedKeppel FELS to develop the Super Bmodel.

“Singapore is the build centre for drillingrigs and Keppel FELS is the number oneand most experienced shipyard in theworld,” complimented Bjarne during thenaming of the rig by his daughter, LenaSkeie.

Reliability begets renown

Being the number one rigbuilder doesnot come easy. Keppel FELS’ reputationstems from its commitment to beingreliable and delivering value-addedproducts and services. Its dependable,quality products are predictably deliveredon time and within budget always.

As Choo Chiau Beng, Chairman/CEO ofKeppel O&M, the parent company ofKeppel FELS pointed out, “At Keppel, werecognise that on time deliveries arecritical to rig owners especially duringsuch an active offshore drilling market.”

It is this hallmark which has propelledKeppel FELS to global status and attractedmany customers worldwide. Amongstthem are the Norwegians who havegiven Keppel some S$3 billion worth ofwork.

“As I look across the Keppel Offshore &Marine organization, I recognise that theyhave a system for building and delivering

1

8


Xtreme drilling market

jackups that allows them to have a refinedand controlled product, delivered on timeto the specification that they are able toagree long in advance,” affirmed Bill Rose,President and CEO of Premium Drilling,the joint venture operating and marketingarm of Sinvest.

Teamwork delivers success

The successful partnership betweenKeppel and Norway is a result of thebusiness friendly policies of the SingaporeGovernment, said Choo.

He shared, “The foreign workers policiesin Singapore have helped ensure sufficientlabour to meet the growing number ofprojects in our yards. Business friendlypractices have also helped Keppel in manyof our commercial dealings with countrieslike Norway.”

Guest-of-Honour, Minister Lim Swee Say,Minister, Prime Minister’s Office, talkedabout management-union relations. He

told the 150 guests present at theevent, “Over the years, Singapore,corporations, workers and unions haveworked very hard to establish ourselvesto be a leading business hub in this partof the world.”

He noted that this is a reciprocalrelationship and that the tripartite ofcorporation, union and workers giveslocal corporations the competitive edgefor success.

Citing Keppel as a company which looksafter the interest of the workers, he said,“Keppel is a shining example of thisexcellent labour management relation. AtKeppel, the management is always on thelookout for measures and initiatives thatfurther the interest of the workers. It isprecisely because of this kind ofmanagement commitment that the unionsand the workers are doing their very bestas a team, to deliver their commitment tothe customer, at the highest quality, at thelowest cost and most importantly, alwayson time”.

Assuring Sinvest that Keppel O&M wouldlive up to its reputation as the numberone shipyard with on time deliveries,Choo told Bjarne in the presence ofMinister Lim and Keppel Corporation’sExecutive Chairman Lim Chee Onn that,“You will also be very happy to know thatthe other four Sinvest rigs underconstruction here at Keppel O&M areprogressing well according to schedule.”

1. Lady Sponsor, Lena Skeie (left) christensDeep Driller 2. (From left) Choo ChiauBeng, Tong Chong Heong, MD/COO,Keppel O&M, Minister Lim Swee Say,Lim Chee Onn and Michael Chia,Executive Director, Keppel FELS

2. Management of Keppel and Sinvestreceive Minister Lim

3. Michael Chia presents the rig’s nameplate to Rig Manager, Guy McNabb

4. Lena celebrates the joyous occasion with daughter, Liv Kinsella

5. An eventful day for Minister Lim as hegets an insight into the rig’s operations

6. Minister Lim meets Keppel’s men of steel7. Minister Lim tries the drilling operator’s

seat on Deep Driller 28. A warm partnership between Bjarne

Skeie (left) and Tong (right)

2 3 4

5 6 7


Achieving double certification

K eppel FELS Brasil, together withits subsidiary, BrasFELS yardand its facility in Niterói, have

been awarded the Safety andOccupational Health AdministrationOHSAS 18001 and ISO 14001 Systemof Environmental Administrationcertification by Bureau Veritas QualityInternational (BVQI) in February 2006.

With this, Keppel FELS Brasil achieves therare distinction of being the first companyin Brazil’s marine industry to obtain bothqualifications.

Said Milton Areas, Corporate Manager ofHealth, Safety and Environment (HSE),“Keppel FELS Brasil is committed touphold the highest standards of safety andenvironment at our workplace to ensurewe provide products and services of thehighest quality to the marine sector inBrazil.”

“This marks an important achievementin aligning the systems and processes ofour Brazilian operations with that ofKeppel O&M to comply with theinternational environmental and safetystandards.

“It is the collective achievement of theemployees of Keppel FELS Brasil,especially the HSE teams from BrasFELSand Niterói,” beamed President & CEOof Keppel FELS Brasil, Tay Kim Hock.

Double happiness forKeppel FELS BrasilKeppel FELS Brasil receives accolades for its consistent effort to pursue the higheststandards for project management and its commitment to Health, Safety andEnvironment.

Honoured by Petrobras

Keppel FELS Brasil through its Niteróiyard received from Petrobrás the Quality,Safety, Environment and Health (QSMS)award for 2005 on 16 March 2006.

Keppel FELS Brasil emerged the winnerunder the project “Implementation ofEnterprise for Roncador” (IERO) whereseven shipyards involved in the P-52project were closely evaluated for one yearfor their Quality, Safety, Environment andHealth practices.

The manager of the Niterói yard,Edmundo Santos, was also honouredwith his team.

At the award ceremony held at KeppelFELS Brasil’s Niteroi unit, the RoncadorField Project Manager, Antônio CarlosJusti, congratulated Keppel FELS Brasilon this achievement. He said: “Thecompetence of the company in theexecution of the project led to thewinning of the award. This is the fruit oflabour of the teamwork in Keppel FELSBrasil.”

Tong Chong Heong, MD/COO of KeppelO&M said, “It is indeed a great honourto receive this recognisation from ourvalued client. This is undoubtedly a greatmotivation for the whole team of KeppelFELS Brasil.

The team at Niteroi Yard beaming with pride


ur Core Values are importantanchors of our organisation…”,‘‘O – Chairman & CEO Choo Chiau Beng.

Addressing new Keppelites at the inauguration ofthe Keppel O&M Corporate Orientation on3 March 2006, Choo Chiau Beng, Chairman &CEO of Keppel O&M, reiterated the importanceof core values in shaping behaviours and actions.

To be conducted on a monthly basis, the KeppelO&M Corporate Orientation provides an overviewof the organisation’s Vision, Mission, Core Values,businesses, strategic directions, Group policies andcareer progression. The orientation program aimsto strengthen communication with new Keppelitesby giving them an appreciation of the various facetsof Keppel O&M.

Many of the participants expressed theirappreciation in providing them a platform tointeract with the Management.

Keppel imparts values to newbies

At the end of the orientation, they were askedto pen down the work targets they hope toachieve in the next six months in a “Dear Me”postcard. At the end of the six months, the self-addressed postcard will be posted back to themfor reflection and to take stock of their set targetsand achievements.

S. Jayakumar, KeppelFELS’ General Managerof Marketing, shares hisexperiences

“I would like to congratulate and thank the teamat Keppel FELS Brasil and I am sure we willwork harder to reach a greater level of excellencein all our projects.”

The Niterói yard of Keppel FELS Brasil ispresently constructing four modules for P-52.All four of them are near completion and will

(From left to right): Edmundo Santos,Manager of the Niterói yard, EduardoNuñez, Project Manager of the P-52Project, Tay Kim Hock, the President &CEO of Keppel FELS Brasil, Tong ChongHeong, Managing Director (MD) andChief Operating Officer (COO) of KeppelO&M, Jorge Luiz Zelada GeneralEngineering Manager for Petrobras,Antônio Carlos Justi, Roncador FieldManager, Sergio Azeredo, Representativeof Petrobras at Niterói

be moved to BrasFELS yard where they willbe installed on the deck box of P-52.

The construction of the modules took about1.8 million manhours work without accidents.

The Niterói yard is currently also fabricating fourmodules for the P-51 floating production unit.


Celebrating friendship(from left):

Choo Chiau Beng,Fritz Muller,

Tong Chong Heong,Bozidar Petrovic,

Helmut Ponath,Herbert Prinzen,

Dr Hans Vieregge andNelson Yeo

K eppel Shipyard and NiederelbeSchiffahrtsgesellschaft GmbH & Co.KG (NSB), with bonds of friendship

spanning 20 years, gathered to celebrate thedocking and repair of NSB’s150th vessel,CMA CGM Voltaire, at Keppel Shipyard on23 February 2006.

Keppel Shipyard’s close and long-standingrelationship with Helmut Ponath, President &CEO of NSB, started in 1984 when Mr Ponathfirst worked with Nelson Yeo for the drydockingof a vessel from his old company.

Friendship at work

In 1988, the repair of NSB’s first vessel, ProudEagle, was carried out at the old KeppelShipyard at Telok Blangah. Since then, thepartnership has strengthened over time.

The mutual trust and bond have blossomed intofamily-like ties at the two companies.

This is clearly evident in the strong turnout ofthe past and present Keppel Shipyard teammembers who had worked with NSB over theyears.

Choo Chiau Beng, Chairman & CEO ofKeppel O&M, and Tong Chong Heong, MD &COO of Keppel O&M and Managing Directorof Keppel Shipyard, were also present to extendKeppel Shipyard’s appreciation for NSB’scontinued support.

Nelson Yeo, Executive Director of KeppelShipyard said: “I am proud to have projectmanagers like Kelvin Goh and Jeffrey Chua whoare committed to dedicated service and strongpartnership to NSB, our friend and valuedcustomer.

“I am confident that our partnership will growfrom strength to strength. We look forward to

Kelvin Goh, the ProjectManager for 150th vessel

flanked by Nelson Yeoand Bozidar Petrovic,Vice President of NSB


the docking and repair of the 200th NSB vesselin our yard in the near future.”

Kelvin Goh has recently been appointed asProject Manager for NSB vessels docking atKeppel Shipyard. He was previously AssistantProject Manager.

He said, “The 150th vessel CMA CGM Voltaire

K eppel Offshore & Marine (KeppelO&M) showcased its wide range ofoffshore and marine capabilities at the

bi-annual Asia Pacific Maritime (APM)exhibition.

Held on 22 to 24 March at Singapore Expo,APM 2006 is into its ninth run. The exhibitionattracted 600 companies from 45 countries.

Mrs Lim Hwee Hwa, Minister of State forFinance and Transport, graced the event.

On behalf of the Singapore Pavilion, MichaelChia, President of the Association of SingaporeMarine Industries (ASMI) and ExecutiveDirector of Keppel FELS, gave the guest-of-honour a good overview of the industry playerspresent at the show.

Showcasing Keppel at APM

Michael Chia and Minister of State Lim Hwee Hwa share a moment atthe model of Maersk Explorer, a drilling semi built for Maersk Contractors

A gathering ofthe present andex-KeppelitesincludingLawrence Mah (left)and Loh Wing Siew(fourth from left)

is my fourth NSB baby. It is an honour to beentrusted as the Project Manager for the 150thNSB vessel docking in Keppel.

“I enjoy working with the NSB team becausewe share the same passion and enthusiasm.My experiences on the first NSB vessel“BUXCROWN” with Mr Ponath has trained mewell to deliver the best for NSB.”


E ach time a terrorist activity takes place,it reminds us of the uncertain timestoday. Targets are indiscriminate,

making almost anything anywhere a potential.Shipyards are no exception.

That is why nothing is taken for granted in thepremises of Keppel O&M. Anthony Toh, KeppelO&M Group Security Manager and his team ofSenior Officers lead a 114-strong GroupSecurity Team to ensure that customers andstakeholders are fully assured of the securityand safety of the yards.

Security is Paramount

The team adopts a two-pronged approach tothe security of the yards. The first is to ensurethat the daily proceedings of the yards are inorder and the second, strategic long-term

Keeping a promise soundIn an environment where safety and security are paramount and adverse distractions aliability, the security team led by Anthony Toh, Keppel O&M Group Security Managershoulders the important responsibility of ensuring the security and safety of the yards.

investments and implementation of systems tokeep antagonists at bay.

Senior Guard Commander, Mahinder Singh isone of the outriders that the security teamdeploys to patrol the yard daily. During hispatrols, he ensures that everyone adheres to theyard rules, looks out for any irregularities andtrespassers from land or sea.

Mahinder shares, “For the past 17 years, I patrolthe yard and take enforcement actions againstany offenders. As a result, I may have offendedsome people or caused them to be wary of me.However, I take pride in carrying out my dutiesfearlessly.”Realistic simulation exercises

are carried out by theKeppel O&M security teamto finetune the co-operationand coordination withexternal agencies like theSingapore Police Force

Hawk-eye Senior Guard Commander,Mahinder Singh asserts that Big Brother

is always watching


“I also ensure that vehicles do not obstructthe flow of traffic or cause anyobstructions in order to facilitate all thework in the yard,” he added.

Anthony and his second-in-command,Desmond Oliveiro, who between themhave a total of 70 years of experience withthe Singapore Police Force, train andeducate their officers.

Providing an account on how he taughthis officers to do surveillance when theyspotted a suspicious bag (filled withcopper trimmings) lying around in theyard, Anthony said, “I told them to be intheir civilian clothing to beinconspicuous. Then to keep a lookouton the bag at a distance. Finally, the culpritcame back to collect the bag and wasnabbed by us!”

100% Operational Readiness

The bigger challenge is in the event of acrisis where the systems set up are tested.These have been purposefully and

painstakingly developed over time toeffectively respond to the crisis.

One initiative is the Shipyard SecurityWatch Group (SSWG), which comprisesKeppel O&M, Singapore TechnologiesMarine (ST Marine) and Jurong Shipyard.Together with the Singapore Police Forceand other Home Affairs agencies in theJurong Industrial Estate, the SSWG servesto tighten the overall security within theimmediate vicinity through joint patrols.

Combined training and exercises thatinclude crisis simulations such aschemical threats, bomb hoaxes andhostage situations are also carried out tostrengthen inter-yard relations. Thesesimulations are carried out in compliancewith the International Ships & PortsSecurity (ISPS) regulatory requirementsfor world-class maritime facilities.

Accolades

On 13 January 2006, the SSWG held itsinaugural seminar to share their ongoing

Safe and secure – flanking Anthony (front centre) and part of the Keppel O&M security team is the Outrider Squad

partnership activities with the SingaporePolice Force, Singapore Civil DefenceForce, Police Coast Guard and theMaritime & Port Authority of Singapore(MPA) on security exercises and drills tomeet the ISPS requirements.

For all its efforts, the Watch Group waspresented with a Silver award by theSouth West Community DevelopmentCouncil and a Gold award by the NationalCommunity Safety & Security Program(CSSP).

“We invest a lot of resources, time, money,manpower to ensure safety in the yardbecause we never know what will happen.Accidents do happen and risks are everpresent, but through these investments,the detrimental effects of these adversitiescan be significantly reduced,” saidAnthony.

Daunting, the task may be, it is all in aday’s work for Anthony and his team, asthey contribute to delivering the promiseof ‘On Time, On Budget’ to customers.


Zero downtime on P-53

P -53 commemorated its firstmajor safety milestones forone million manhours without

lost-time incidents.

More than 40 Petrobras, CharterDevelopment LLC and KeppelShipyard project team membersattended the event. They were joinedby Mr Eduardo Bordieri, AssetManager for the Marlim Leste Field.

Previously known as VLCC Settebello,P-53 is undergoing a hull conversion,which includes the installation of amarine system as well as thefabrication and integration of theinternal turret on the 322,446 dwttanker.

With 75 risers, the turret on P-53 willbe the largest ever fabricated andinstalled in the world. Due for theMarlim Leste field in the CamposBasin, the production unit isscheduled for completion in end2006.

Works are underway for fabrication ofthe turret, accommodation and officeblocks, refurbishment of the engineroom and pump room, as well aspainting and installing of newstructures and piping in the tanks anddeck.

Upcoming project milestone will bethe lifting of the N01 block inMay 2006 and second drydocking inJune 2006.

“This safety achievement has beenmade possible through the joint effortof both client and shipyard site teams,”said Terry Wong, Project Manager forP-53.

Safety first: celebrating P-53’s one million manhour lost time incident-free milestone

One million manhour lost time incident-free

Dear Terry Wong,

On behalf of PETROBRAS/CDC, I would like to congratulateKeppel Shipyard for this remarkable achievement.

This is the real proof of the commitment of the Keppel family with the mostimportant value we all (workers, managers, human beings) have: LIFE.

I expect to join you to commemorate very soon the next target: 2 millionmanhour incident-free.

Thank you and congratulations,

Sincerely,

Edmilson MedeirosP-53 Construction, Assembly and Integration Manager


C onstruction of WilCraft, themaiden KFELS B Class jackupfor Awilco Offshore (Awilco)

began in April last year. Work on the righas progressed well, culminating in theproject team achieving one millionmanhours without a lost time incident inFebruary this year.

Awilco recognised this achievement bypresenting Keppel FELS with a SafetyExcellence Award and a Safety Bonus ofUS$10,000. This commendation istestament to Keppel O&M’s commitmentto excellence in safety, in which everyemployee is inculcated with the value tomake safety a part of life.

Awilco shares this value. In itscommendation letter, Project Manager

Pete England wrote, “…(safety) issomething that we have come to expectas second nature to Keppel FELS.

“What impresses us further is that onWilCraft, this has so far been achievedwithout any let up on the drive to meetschedule and quality targets, despite thecurrent unprecedented workload in youryard.”

Pete added, “Safety is one of the foremostconcerns for Awilco in our fleet expansionprogramme, and it is for this reason thatall our jackup rigs are equipped with asignificantly increased degree ofmechanisation within the pipehandlingprocess areas.

“The challenge for Keppel FELS will be

to safely and successfully install, test andcommission this considerably increasedscope of equipment for delivery in thefourth quarter of this year.

“We would like to take this opportunityto encourage you to continue in the sameexceptional drive and spirit that you havedisplayed so far, and by doing so, we areconfident that you will successfullysurmount these impending challengessafely.”

Safety award forKeppel FELS

The project teams for Keppel FELSand Transocean came together fora teambuilding exercise, ahead of

their new projects.

A two-day session entitled “WorkingTogether to Expand Our Safety Culture”,

the programme approached the issue ofsafety enhancement by analyzing bothcompanies’ safety culture, combiningtheir best traits for application to theupcoming projects.

Said Michael Chia, Executive Director ofKeppel FELS, “Safety is a continuousjourney without a stop. We mustconstantly improve, enhance and ensurethat our safety measures are in place toreduce or eliminate risks.”

Sharing the same fervent commitmentto safety, Keppel FELS and Transocean

Building an incident-free cultureaim to continuously improve safetyperformance through various initiatives.The teambuilding programme is one ofthem.

Said Transocean Project Manager, ByronHalbleib, “This investment in our workforce will provide strong dividendstowards our common goal of successfullycompleting these projects incident free,on time and on budget.”

He added, “Full and active participationin this teambuilding programme by theKeppel FELS project team leaders typifiesKeppel FELS’ proactive approach tosafety management and demonstrateswhy Keppel is a recognised world-classleader in their field.”

Safety through team effort betweenKeppel FELS and Transocean


Delivering global solutionsChoo Chiau Beng, Chairman & CEO ofKeppel O&M shared this formula, whichmirrors that of Keppel, at the WorldMaritime Technology Conference(WMTC) 2006 from 6-10 March inLondon.

Illustrating from the oil and gas valuechain, Mr Choo discussed the role of ashipyard in the upstream and midstreamsector.

In upstream, with its design, constructionand conversion capabilities, Keppel is ableto provide seismic, drilling, support andmaintenance vessels in this area.

While in midstream, Keppel’s expertiselies in providing repair and upgradingservices to a suite of tankers and

transporters including Liquefied NaturalGas (LNG)/Liquefied Petroleum Gas(LPG) and crude oil carriers.

Mr Choo also spoke about striking a win-win relationship between the shipyardand its customers. Citing Keppel O&Mas an example, he discussed how thegroup partners its customers to providemaximum value that can meet their needsand business objectives.

Aptly themed Maritime Innovation –Delivering Global Solutions, WMTC 2006aimed to promote integrated solutions toindustry-wide issues while assessing itsimpact on global economies now and inthe future.

(Second from left) CB Choo meetsHis Royal Highness Prince Philip Dukeof Edinburgh, at the World MaritimeConference 2006

To succeed, a shipyard must havestrong capabilities, understandthe needs of its customers and be

able to provide solutions.

Knowledge sharing is essential for best practices.Mistakes are learnt and avoided.

Choo Chiau Beng, Chairman & CEO of Keppel O&M sharedthis at the launch of the Directory of Experts on 15 February2006.

As its name suggests, the Directory of Experts is a valuablereference list of specialists in fields such as engineering, 3-Dmodelling right up till rig construction and FPSO conversion.

Easily accessible via the Enterprise Information Portal (EIP), thislatest initiative under the auspices of the Knowledge Management(KM) programme provides a platform for Keppelites to approachthe experts for guidance.

Charles Foo, MD (Special Projects) of Keppel O&M and thechampion for KM, commented, “Knowledge Management is oneof the drivers of innovation.

Knowledge sharing“However, for the quantum leap, innovation should be drivenby technology foresight which means engaging in R&D,interpreting market trends and having the industry expertise.”

Directory of Experts at a click


Delegates from valued customer, SinvestASA (Sinvest) of Norway visitedKeppel FELS on 9 March 2006.

A dialogue session was held to furtherstrengthen relationship between the twocompanies. The delegates, led by Bjarne Skeie,Chairman of Sinvest, toured the yard andsaw the progress of various Sinvest projects.

Keppel FELS is building five Super B Classjackup rigs for Sinvest. The projects are invarious stages of completion. The first rig, tobe named Deep Driller 2, was christened on8 April 2006.

Involved primarily in investments relating tothe offshore industry, Sinvest ASA is a publiccompany quoted on the Oslo stock exchange.

A Norwegian visit

Onboard Deep Driller 2, the first Super B Class jackup built for Sinvest

K eppel O&M hosted delegatesfrom the Ministry of Manpower(MOM) – Foreign Workforce

Department and the EconomicDevelopment Board (EDB) on 8 February2006. The aim of the dialogue session andyard visit was to understand theoperations of the yard.

Said Tong Chong Heong, MD/COO ofKeppel O&M, “The industry has acompelling need for a constant stream oftradesmen and for their skills to beupgraded.”

Keppel O&M focuses on multi-prongedhuman capital development initiativesto recruit, train, nurture and retaintalents in higher value-added positions,such as engineers, management andsupervisors.

Investing in human capitalThese initiatives include scholarships,further education sponsorships foremployees, participation in career fairs,rehiring of retired but physically fitemployees and supporting variousinstitutions in nation-wide recruitmentdrives, such as the Super V programme,Republic of Singapore Navy – careertransition programme and the YellowRibbon programme.

Urging for more mutually beneficialinitiatives, Tong said, “We look forwardto more such dialogues with MOM andEDB to meet the country’s manpowerchallenges together.”

Michael Chia, Executive Director ofKeppel FELS (front) walks the ground

with the MOM and EDB delegates


Spearheaded by Keppel O&M, members of the KeppeliteRecreation Club (KRC) were out in force along OrchardRoad on 18 February 2006 to help sell coupons at the

launch of SingHealth Foundation’s “Save Money, Save Lives”Project 2006.

Proceeds from this fund-raising project will go to supportingSingHealth’s medical research in the fields of cancer, heart disease,diabetes, childhood hereditary disorders and neurosciences.

Despite having busy work schedules and having to sacrifice aSaturday, the volunteers from Keppel were glad that they couldbe part of a good cause.

Winson Lim, Assistant Purchasing Officer at Keppel Shipyardshared, “I want to lend a helping hand to those who are lessfortunate and in poor health. I am happy to be able to do thisthrough the KRC.”

Guest of Honour, Dr Vivian Balakrishnan, Minister forCommunity Development, Youth and Sports, and Second

Keppelites support SingHealth

Winson Lim struts the street for a good cause

Headed by the S3 Secretariat, a quarterlytopic is raised for employees to submittheir suggestions.

Kicking off the first quarter was ‘SavingEnergy & Resources”. Keppelites wereencouraged to put forward brilliant ideason how to save resources around thepremises of Keppel FELS.

First-prize winners of a $150 vouchereach, Ng Hoong Fei, Purchasing Manager,and Betty Mok, Administration Officer,submitted their energy saving suggestions.

Their proposals were to reduce thenumber of light bulbs in areas that do notrequire much lighting in the mainbuilding.

In addition, novel ideas such as installingmotion sensors in toilets to activate lights

Glowing new ideaswhen in use and time-controlled switchto turn off canteen lights when not in use,were also mooted.

Yvonne Chang, Assistant HR executive,won the third prize of a $50 voucher forcontributing her paper-saving suggestionthat combines three forms into one.Presently, new employees have to fill inthree separate forms with several similarfields when applying for an internetaccount. A single form facilitates a shorterwork process and saves paper.

S3 Secretariat Chairman and HRManager of Keppel FELS, Stanley Yong,strongly urged employees to contributemore suggestions using a S3 form availablefrom their respective departments’ S3

representatives,” he said, “Keep up theenthusiasm and keep the suggestionscoming.”

K eppel FELS’ inaugural StaffSuggestion Scheme (S3) was ahit with an overwhelming

number of suggestions submitted.

Re-launched in September 2005, thescheme aims to encourage employees toput on their thinking caps and contributesuggestions to improve work efficiencyand effectiveness.

Top three winners of the new S3

programme (from L to R), Ng HoongFei, Yvonne Chang and Betty Mok

Minister for Trade and Industry, presented Keppel O&M with atoken of appreciation, which was received by Chee Jin Kiong,Executive Director of Human Resources.


and supply of 220 keel bolts for theClipper fleet,” said Race DirectorTim Hedges of Clipper Ventures.

Each boat is fitted with 21 bolts, weighing2.5kg each and every bolt is custom-madeusing the latest Computer Aided Designtechnology. With a team of around 90people working on the fleet (amountingto around 1,000 daily manhours), therectification work was completed in fourweeks.

While the repairs were underway, theremaining Singaporean crew put up at thecorporate accommodation of SubicShipyard.

“Keppel is proud to be of assistance tothe Clipper Race and to be associated withthe spirited adventure seekers who willstop at nothing to overcome the odds.Whether Clipper and their crew are inSingapore, the Philippines or anywhereelse in the world, we will always bedelighted to find solutions in anyway we can,” said Wang Look Fung,

General Manager of Group CorporateCommunications, Keppel Corporation.

Located in the Philippine Economic ZoneAuthority area of Zambales, SubicShipyard is a member of Keppel O&M.The company is noted for its repair andconversion works on supertankers andFloating Production Storage andOffloading (FPSO) vessels.

Said Charles Yap, President and GeneralManager of Subic Shipyard, “Extendingthe Singaporean hospitality to our friendsin need in a foreign land is our pleasureindeed.”

The Clipper 05-06 Race set sail again on25 March from Subic Bay in thePhilippines, after completing a series ofsea trials. The second half of Leg Four(Race 6) was re-commenced.

As a “Bon Voyage” gift, Subic Shipyardgave away packs of the Philippines’ veryown unique dried mango to sweeten thejourney for the Clipper crew.

Sending-off in Filipino style. The SubicShipyard & Engineering team turnedup in full force to cheer on TheUniquely Singapore Clipper crew

E n route from Singapore toQingdao in China, the 10-strongClipper fleet was diverted to

stopover at Subic Bay, Philippines, on5 February 2006 due to keel problems.

A survey identified an issue with theconnection between the outer skin of thehull and the keel.

Coming quickly with aid where possible,Subic Shipyard & Engineering (SubicShipyard) assisted in the supply of brandnew keel bolts for the entire fleet ofClippers.

“As a Race Partner of Singapore’s entry tothe Clipper Race – Uniquely Singapore,Keppel have shown tremendous supportto the Clipper 05-06 Race, playing hostalong with other Race Partners when thefleet visited Singapore in January 2006.

“This time, they have generously steppedin with logistical help, supplying crewwith accommodation for their stay in thePhilippines and now with the engineering

Subic connection for Clippers


Around our yardsOffshoreMarine tracks works carried out at various Keppel yards.

Singapore

Keppel Shipyard Tuas

Name : Margrethe MaerskOwner : A P Moller MaerskCountry: DenmarkType : Container ShipDWT : 60,639GRT : 52,191Date : 21 March 2006 – PresentScope : General repair and renewal

Name : KaminesanOwner : MOL Tankship Management

Ltd (Ex-International EnergyTransport Co Ltd)

Country: JapanType : TankerDWT : 303,896GRT : 159,813Date : 25 March 2006 – PresentScope : General repair and renewal

Alexander Carl Solid Gold

DurgandiniSUPERFERRY 9


Name : Federal IOwner : Federal International

(2003) LtdCountry: SingaporeType : Floating Storage and

Offloading (FSO)DWT : 149,235GRT : 88,122Date : 24 February 2006 –

PresentScope : General repair and

renewal

Name : Fortuna AyuOwner : P T Panji Adi Samudera

(PAS Maritime)Country: IndonesiaType : Chemical TankerDWT : 37,224GRT : 19,707Date : 25 March 2006 –

PresentScope : General survey and repair

Keppel Shipyard Benoi

Name : DurgandiniOwner : P T Arpeni Pratama Ocean

LineCountry: IndonesiaType : Oil TankerDWT : 36,406GRT : 21,810Date : 7 January 2006 – PresentScope : Double hull conversion

Name : Navix AstralOwner : MOL Shipmanagement AsiaCountry: SingaporeType : Oil TankerDWT : 275,644GRT : 144,127Date : 21 March 2006 – PresentScope : General survey and repair

Name : MSC StellaOwner : Mediterranean Shipping

CompanyCountry: ItalyType : Container ShipDWT : 85,820GRT : 73,819Date : 26 – 29 March 2006Scope : Drydocked for aft seal

bonding, stern tube coolingpipe to repair

Name : Sun RoadOwner : Sunford Shipping Ltd.Country: JapanType : Container ShipDWT : 57,904GRT : 53,359Date : 29 March – 6 April 2006Scope : Drydocked for general repair

and renewal works such astailshaft withdrawal,propeller polishing & dyechecking, main engineturbocharger overhaulingand ballast pipes repair

Keppel Batangas Shipyard

Name : SUPERFERRY 9Owner : Aboitiz Jebsens

ShipmanagementCountry: PhilippinesType : Passenger / RoroDWT : N.A.GRT : 8,839Date : 18 March – 4 April 2006Scope : Emergency drydocking for

rudder repair

Name : Solid GoldOwner : Solid Shipping CompanyCountry: PhilippinesType : Cargo CarrierDWT : N.A.GRT : 3,956Date : 22 February –

15 March 2006Scope : 68.5 tonnes of steelwork,

piping works, rudder andpropeller works

Philippines

Subic Shipyard

Name : Alexander CarlOwner : Keoyang Shipping Co. LtdCountry: KoreaType : Ore / Coal CarrierDWT : 208,394GRT : 110,627Date : 01 – 19 March 2006Scope : Drydocked for general

repair as well as renewalworks such as hullpreservation, overhaulingof sea valves, main engineair cooler renewal andoverhauling ofaccommodation ladders

Navix Astral

Sun Road


Keppel Group Newsbytes

Keppel Land’s wholly-owned real estatefund management arm, Alpha InvestmentPartners Ltd (Alpha), has announced thefinal closing of its Alpha Core Plus RealEstate Fund.

The Fund has raised a total ofS$720 million which exceeded its originaltarget of S$412 million. With gearing, theFund will eventually reach a total assetsize of S$1.8 billion when it is fullyinvested.

The total investor commitments raised byAlpha have now reached S$1.6 billion.When they are fully invested on a generalbasis, Alpha will have a total asset undermanagement of S$4.4 billon.

Keppel Land has set a new milestone on20 March 2006 for the listing of K-REITAsia, a new real estate investment trustaimed at investors who want access to anincreasingly broad range of propertyinvestment opportunities in Asia. Thelisting document was despatched with acircular in respect of the distribution inspecie of units of K-REIT Asia.

——●——

Singapore Petroleum Company (SPC)and its partners have begun drilling theJeruk-3 well to further appraise the Jerukoil discovery. Located offshore East Java,about 42 km east of Surabaya, the Jerukfield is currently being appraised todetermine its potential.

——●——

SPC and partners have begun drilling of the Jeruk-3well

Keppel Seghers, the environmentaltechnology division of Keppel IntegratedEngineering (KIE), has secured aS$13 million contract to providetechnologies and services for the firstwaste-to-energy plant to be built in thecity of Jiangyin, Jiangsu province, China.

Keppel Seghers will provide itsproprietary equipment design andtechnical services for the furnace, boilerand flue gas cleaning components of theplant.

When completed in end 2007, the waste-to-energy plant will be able to treat 800tonnes of municipal waste a day.

——●——

At the inaugural Singapore CorporateAwards (SCA) presentation ceremonyheld at the Raffles City Convention Centreon 7 March 2006, Keppel Land andKeppel Corporation emerged the Goldwinner of the Best Annual Report Award(ARA), and the Silver winner of theBest Investor Relations Award (IRA)respectively, in the category of listed firmswith a market capitalisation of$500 million or more.

Regional interest in property funds and trusts present opportunities for Keppel Land to further expand its business


Global ReachKeppel Offshore & Marine Ltd(Head Office)50 Gul Road Singapore 629351Tel: 65 6863 7200Fax: 65 6261 7719www.keppelom.com

SINGAPOREKeppel FELS Limited(Pioneer Yard 1 – Head Office)50 Gul Road Singapore 629351

(Pioneer Yard 2)55 Gul Road Singapore 629353

(Shipyard Road)31 Shipyard Road Singapore 628130

Tel: 65 6863 7200Fax: 65 6261 7719Email: [email protected] Persons: Michael Chia, Executive DirectorS Jaya Kumar, General Manager (Marketing)

Keppel Shipyard Limited(Tuas Yard – Head office)51 Pioneer Sector 1 Singapore 628437Tel: 65 6861 4141Fax: 65 6861 7767

(Benoi Yard)15 Benoi Road Singapore 629888Tel: 65 6861 6622Fax: 65 6861 4393

(Gul Yard)55 Gul Road Singapore 629353Tel: 65 6861 3007Fax: 65 6862 3645/7

Email: [email protected] Person: Nelson Yeo, Executive Director

Keppel Singmarine Pte Limited15 Benoi Road Singapore 629888Tel: 65 6861 6622Fax: 65 6862 1792Email: [email protected] Person: Hoe Eng Hock, Executive Director

Offshore Technology Development Pte Ltd55 Gul Road Singapore 629353Tel: 65 6863 7409Fax: 65 6862 3465Email: [email protected] Person: Dr Foo Kok Seng, General Manager

Deepwater Technology Group Pte Ltd50 Gul Road Singapore 629351Tel: 65 6863 7163Fax: 65 6863 1739Email: [email protected] Person: Aziz Merchant, General Manager

Asian Lift Pte Ltd23 Gul Road Singapore 629356Tel: 65 6668 4222Fax: 65 6668 4333Email: [email protected] Person: John Chua, General Manager

Keppel Smit Towage Pte Ltd23 Gul Road Singapore 629356Tel: 65 6668 4222Fax: 65 6897 8056Email: [email protected] Person: Ben Chew, General Manager

AUSTRALIAKeppel Prince Engineering Pty LtdLevel 7, 3 Bowen CrescentMelbourne, Victoria 3004, AustraliaTel: 61 3 9820 9033Fax: 61 3 9866 6110Email: [email protected] Person: Charles Chiam, Director

AZERBAIJANCaspian Shipyard Company LtdSouth Bay, KMNF BasinBaku AZ1023, AzerbaijanTel: 994 12 449 9930Fax: 994 12 449 9931

Email: [email protected] Person: Bill Kee, President

BRAZILKeppel FELS Brasil S/ARua da Assembeia, 10 – 200220011-000 Rio de Janeiro, RJ, BrazilTel: 55 21 2102 9400Fax: 55 21 2224 2248Email: [email protected] Person: Tay Kim Hock, President & CEO

BULGARIAKeppel FELS Baltech Ltd54 Debar Street, Varna 9000, BulgariaTel: 359 52 684 250/1Fax: 359 52 684 252 (Admin)Email: [email protected] Person: Lyudmil Stoev, General Manager

CHINA/HONG KONGKeppel Nantong ShipyardNo. 9 Yan Jiang Road, Nantong City, Jiangsu ProvinceP.R.China 226005Tel: 86 513 560 3070Fax: 86 513 5601936Email: [email protected] Person: Lee Tai Kwee, President

Keppel Seghers Engineering & Construction (China)Co., Ltd.Shenzhen Branch Office, 6th FloorChiwan Petroleum Building, Chiwan Road No. 3P.R. China 518068Tel: 86 755 26851902, 86 755 26851959,Tel: 65 68637215 (Singapore Contact)Fax: 86 755 26851670Email (China): [email protected] (Singapore): [email protected] Person: Ho Jong Heng, General Manager

INDIAKeppel FELS Offshore and Engineering ServicesMumbai Pvt LtdUnit Number 3, 8th Floor, Prism Tower-AMindspace, Link Road, Goregaon (West)Mumbai 400 062, IndiaTel: 91 22 4001 8888Fax: 91 22 4001 8898E-mail: [email protected] Person: Anant Shukla, Assistant General Manager

KAZAKHSTANKeppel Kazakhstan LLPSEZ “Seaport Aktau”, Aktau 130000, Mangistau OblastRepublic of KazakhstanTel: +7 3292 571 100HP: +7 300 528 4885Fax: +7 3292 571 110Email: [email protected] Person: Yick Ping Wong, General Director

NETHERLANDSKeppel Verolme BVProf. Gerbrandyweg 25, 3199 KK Rotterdam-BotlekHarbour no. 4550, P O Box 1001, 3180 AA RozenburgThe NetherlandsTel: 31 181 234300Fax: 31 181 234346Email: [email protected] Person: Harold W.M. Linssen, Managing Director

NORWAYOffshore & Marine A/SStrandgaten 147, P O Box 4254304 Sandnes, NorwayTel: +47 5160 2500Fax: +47 5160 2510Email: [email protected] Person: Inge Oliversen, President

PHILIPPINESKeppel Philippines Marine IncUnit 3-B Country Space 1 BuildingSen. Gil Puyat Avenue, Salcedo Village1200 Makati City, PhilippinesTel: 63 2 892 1816Fax: 63 2 815 2581, 63 2 892 4604Email: [email protected]@keppelpm.com

www.keppelphilippinesmarine.comContact Person: Toh Ko Lin, President

Keppel Batangas ShipyardBarrio San Miguel, 4201 Bauan, BatangasPhilippinesTel: 63 43 7271532 to 36Fax: 63 43 7271453Email: [email protected] Person: Yu Cheng Hee, Executive Vice-President

Keppel Cebu Shipyard IncDad Cleland Avenue, 6015 Lapu-Lapu City, CebuPhilippinesTel: 63 32 340 0081 to 89Fax: 63 32 340 0068, 63 32 340 0096Email: [email protected] Person: Fok Swee Yin, President

Subic Shipyard and Engineering, Inc.Cabangaan Point, Cawag2209 Subic, Zambales, PhilippinesTel: 63 47 232 2380Fax: 63 47 232 3350, 63 47 232 3883 to 84Email: [email protected] Person: Charles Yap, President

UNITED ARAB EMIRATESArab Heavy IndustriesP O Box 529, Ajman, UAETel: 971 6 526 3232Fax: 971 6 526 3233Email: [email protected] Person: Y K Leong, Managing Director

USAKeppel AmFELSPO Box 3107, 20000 South Highway 48Brownsville, TX 78523, USATel: 1 956 831 8220Fax: 1 956 831 6220Email: [email protected] Person: Ho Cheok Yuen, President & CEO

Keppel Offshore & Marine USA5177 Richmond Ave, Suite 1065Houston, Tx 77056, USATel: 1 713 840 8811Fax: 1 713 840 1198Email: [email protected] Person: Chow Yew Yuen, President

FloaTEC, LLC14701 St. Mary’s LaneSuite 250, Houston, TX 77079Main Tel: +1 281 870 5200Main Fax: +1 281 870 5210Email: [email protected]: www.FloaTEC.comContact Person: Eric H. Namtvedt, PresidentDirect Tel: +1 281 870 5556Mobile: +1 281 381 2781Email: [email protected]

Keppel Marine Agencies, Inc(Texas Office)5177 Richmond Ave, Suite 1065Houston, Tx 77056, USATel: 1 713 840 1188Fax: 1 713 840 1960Email: [email protected] /[email protected] Person: Michael Holcomb, President/ DirectorJohn C Bajor, Marketing Manager

(New Jersey Office)15 Huddy Avenue, PO Box 417Highlands, New Jersey, USATel: 1 732 872 8800Fax: 1 732 872 8801Email: [email protected] Person: John J. Bajor, Director

VIETNAMKeppel FELS LimitedPetrovietnam Tower, Suite 150M9 Hoang Dieu Street, Ward 1, Vung Tau CityS.R. VietnamTel: 84 64 850098Fax: 84 64 850089Email: [email protected] Person: Henry Sng, Country Manager


F PSO Capixaba, a conversioncontract worth S$90m, wasdelivered in end February 2006.

The 13-month fast-track project is thesixth Floating Production StorageOffloading (FPSO) conversion project forKeppel Shipyard since 2000 from SingleBuoy Moorings (SBM), member of theSBM Offshore N.V. Group.

The workscope on the former StenaCongress includes installation andintegration of topside modules; thefabrication and installation of the internalturret, flare tower, piperack and helideck;and installation of a hose reel at the sternfor offloading to export vessels.

FPSO Capixaba will now be capable ofproducing 100,000 barrels of oil per day(bopd) with a storage capacity of twomillion barrels. The vessel will be moored

Keppel Shipyard deliversFPSO Capixaba for SBM

in 1,350 metres of water. First oil isanticipated in the second quarter of2006.

To be leased by SBM to Petrobras SA,Brazil’s national oil company, FPSOCapixaba will be the first FPSO to bedeployed in the Golfinho light oilfield inthe Espirito Santos Basin offshore Brazil.

Three other FPSO facilities owned by SBMand converted by Keppel Shipyard arealso on lease to Petrobras. They are FPSOEspadarte, FPSO Brasil and FPSO MarlimSul. When the FPSO Capixaba joins theirrank later in the year, their totalproduction output for Petrobras will be390,000 barrels of oil per day.

Didier Keller, Managing Director andChief Executive Officer of SBM OffshoreN.V., said, “We have entrusted KeppelShipyard with the conversion of a number

of sophisticated FPSO projects due totheir strong track record. Once again,Keppel has delivered an excellent FPSOproject on time and proven itself to bevery reliable.”

Choo Chiau Beng, Chairman & CEO ofKeppel Offshore & Marine, shared, “Weare pleased to deliver yet another qualityFPSO conversion project to our valuedcustomer SBM. We look forward to ourcontinued partnership in the years ahead.”

Keppel Shipyard has a strong track recordfor 59 FPSO and FSO conversion andrepair projects.

Currently, Keppel Shipyard is carrying outseveral FPSO and FSO conversion andupgrading projects at its yards. One ofthese projects involves the majorconversion of P-53 project for Petrobras.

Keppel Shipyard successfully completed the sixth Floating Production Storage Offloading (FPSO) conversion project for SBM

Documents

P-52 lower hull arrives in Brazil Keeping a promise sound