Satisfied customer – Prosafe - Keppel Offshore & Marine

IMPORTANT: While every effort is made to ensure instructions are met to customer’s satisfaction, we bearno RESPONSIBILITY or LIABILITY for errors not noted on this proof. Customers are therefore urged toCHECK THOROUGHLY before authorising print runs. (UNISTAR GRAPHICS PTE LTD)

A publication of Keppel Offshore & MarineMICA (P) 239/05/2006January/February 2007

OffshoreOcean Endeavor delivered

Awilco Offshore receivesWilCraft ahead of time

MarineSSP Piranema leavesfor field

Satisfied customer – Prosafe

Jan/February 2007 4/10/07, 12:26 PM1


2 OffshoreMarine January/February 2007

WilCraft completed in 23 months Page 20

Residents’ Committee members tour Acacia Lodge Page 28

Editorial AdvisorChoo Chiau Beng

EditorLai Ching Chuan

Assistant EditorSarah Seah

Sub EditorGayathri Prakash Nair

Committee membersMichael Chia, Nelson Yeo, Hoe Eng Hock,Dr Foo Kok Seng, Aziz Merchant,Jaya Kumar, Quek Mong Song, David Loh,Chin Sze Kiun, Cindy Lim

ContributorsAlan I. Claveria, Andrew Ong, Ang Ru Hui,Grace Chia, Harold Linssen, Lee Yin Chiin,Lisandra Favilla, Lucienne de Jong,Ong Shen Yang, Roy Tan, Tay Kim Hock

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

2006 marks another exceptional year 3

Asian Hercules lifts the odds to bridge 10India’s waters

Zero Loss Time Incidents on P-53 12

Nelson Yeo is Chairman of 14Keppel Philippines Marine

FPSO completed in the Netherlands 18leaves for field

Peak performance 24

Giving the shipping industry a facelift 30

Keppel at OTC 07(30 April to 3 May 2007)

Be prepared for the transformation.

Themed “Transforming the Industry”,the Offshore Technology Conference 2007 in Huston

will play host to:

Keppel Offshore & Marine at booth 8317in the Singapore Pavilion

Keppel FELS Brasil at booth 20in the Brazilian Pavillion

Keppel Verolme at booth 2631in the Dutch Pavilion

Jan/February 2007 4/10/07, 12:26 PM2


OffshoreMarine January/February 2007 3

Keppel Offshore & Marine

K eppel Offshore & Marine(Keppel O&M) achievedanother record year as revenue

of S$5.743b was S$1,675m or 41%higher than 2005.

During the year, Keppel O&M delivered26 newbuilds and conversions, all ofwhich was completed on-time or aheadof time and within budget. Of the tenjackups that were delivered worldwide,Keppel O&M delivered six KFELS B Classjackups. Revenue from ship and rigrepairs was also strong.

Keppel O&M’s profit before tax ofS$640m for 2006 was S$300m or 89%higher than last year’s. Revenue andoperating margins also improved withhigher contract prices and more efficientproject execution.

For the current year, there is expectedgrowth for Keppel O&M. It secured arecord S$7.3b of new orders in 2006,bringing the net orderbook at end-2006to S$10.5b.

Whilst attaining a leading share of above35% of new jackup orders, Keppel O&Malso positioned itself during the year to

Another exceptional yearcapitalise on the strong increase indeepwater drilling semisubmersible(semi) orders. At year-end, it succeededin capturing around one quarter of themarket share, winning all the semi ordersplaced by US drillers.

The outlook for the drilling industryremains good, with tight availability andstrong demand expected for most typesof rigs and other related productsegments.

There is also a growing need for moredeepwater rigs and floating productionsolutions as exploration and productionactivities move into deeper waters.

Keppel O&M, with its suite of proprietarydesigns and expertise in project execution,is poised to benefit from this growingdemand.

Keppel Philippines Marine

Keppel Philippines Marine (KPMI),registered consolidated revenueof P1.95b for shiprepair and shipbuildingin 2006, a 34% increase from the previousyear.

This was due to the increase in its

shipbuilding activities, with the delivery oftwo tugs to Maju Maritime and two lowerhull pontoons and columns for asemisubmersible (semi) drilling rig byKeppel Cebu Shipyard and Keppel BatangasShipyard to sister yard, Keppel FELS.

The company also posted an increase of9% in its operating profit in 2006. Otherincome consists mainly of equity in netearnings of associates increased by 17%.As result, the company posted aconsolidated net profit of P280.5m, upby 12% from last year’s P251.5m.

Arab Heavy Industries

UAE-based Arab Heavy Industries P.J.S.C.(AHI), which is co-owned by the KeppelGroup, achieved creditable performancein 2006. This is the group’s 19thconsecutive year of profitable operations.

During the year, AHI also increased itsshareholding in Arab Eagle MarineEngineering LLC (AEME) from 50% to100%, making AEME a wholly-ownedsubsidiary of AHI.

Both AHI’s revenue and net profit rose by35% to Dh135m and Dh20.7mrespectively. Incorporating the results ofAEME, AHI’s overall revenue and netprofit gained 16% and 38% to Dh143mand Dh24m respectively.

Two significant jobs included theconversion of HAM 602 into one of theworld’s largest stone-dumping vessels andthe conversion of GTO 202 into a floatingmobile jetty.

The slipways and the drydock were alsokept busy the whole year as AHI repaireda total of 222 vessels in 2006. 141 vesselswere repaired on the slipways, 33 in the30,000 dwt Al Zora drydock and theremaining 48 were repaired afloat.

HAM602 is one of the largest stone-dumping vesselsin the world

Jan/February 2007 4/10/07, 12:27 PM3



Celebrating the naming of the FPSO Polvo is Lady Sponsor, Mrs CJ Hadden (4th from left). Accompanying her are(from left) Nelson Yeo, ED of Keppel Shipyard; Arne Austreid, President & CEO of Prosafe; Stephen Hadden, Snr VP (E&P),Devon Energy; Reidar Lund, Chairman of Prosafe; Mrs Lund; CB Choo; Hugh Parry, President of Prosafe; Shin Heon Cheol,President & CEO of SK Corp and Kim Hyun Moo, Vice President (E&P) of SK Corp.

FPSO Polvo

F PSO Polvo was named by LadySponsor, C J Hadden at aceremony held on 9 January

2007. Mrs Hadden is wife of StephenJ. Hadden, Senior Vice President(Exploration & Production) of DevonEnergy, the oil company charteringFPSO Polvo.

A leading owner and operator of FPSOand FSO facilities, Prosafe has in thelast ten years entrusted Keppel

Shipyard exclusively to carry out theconversion and upgrading of all theirFPSO and FSO systems, numbering eightin total.

During the ceremony, Arne Austreid,President & CEO of Prosafe, said, “Iwould like to thank Keppel for itsflexibility and efficiency, and for deliveringyet another high quality FPSO. I wouldalso like to express my gratitude to all theworkers of the shipyard who havecontributed with determined and hardwork.

Prosafe takes possession oftwo first-class FPSOs2007 was off to a good start for Keppel Shipyard with the completion of both FloatingProduction and Offloading (FPS) vessels, FPSO Polvo and Umuroa in the first threemonths of the year. Both vessels belong to valued customer, Prosafe Production (Prosafe).

“Keppel’s performance is a good basis forcontinued co-operation, and Prosafe willthis year convert at least two additionalvessels in this shipyard.”

Choo Chiau Beng (CB Choo), Chairman& CEO of Keppel O&M, thankedProsafe for its confidence in KeppelShipyard, saying, “Our effectivemanagement and execution of thisfast-track project has been possiblebecause Prosafe brings its long projectexperience to complement that ofKeppel Shipyard.”

Jan/February 2007 4/10/07, 12:27 PM4



Commenting on the offshore productionmarket, he said, “The market has in the lasttwo years seen strong orders for floatingproduction units. Looking ahead, we expect thisto be sustained with greater demand for moreFPSO/FSO conversions.”

FPSO Polvo will be deployed offshore Brazil inthe Polvo Field. It is capable of handling a dailyoil production of 90,000 barrels of oil per day(bopd) and having a storage capacity of1.6 million barrels.

Umuroa

Jacqueline Phillips, wife of Bruce Phillips,Australian Worldwide Exploration Limited,named FPSO Umuroa on 15 February 2007.

Umuroa’s naming came one month after thenaming of Prosafe’s other vessel, FPSO Polvo,at Keppel Shipyard.

Umuroa will be deployed to the Tui AreaDevelopment in New Zealand for AustralianWorldwide Exploration Limited. Umuroa willhave a process capacity to handle 120,000barrels of fluid per day (bfpd), with oilproduction at 50,000 bopd, gas compressionat 25 million standard cubic feet per day(mmscfd) and a storage cap of 770,000 barrelsof oil. First oil is expected in the second quarterof 2007.

At the naming ceremony, Tong Cheong Heong(CH Tong), MD of Keppel Shipyard enthused,“The partnership between Keppel and Prosafehas grown from strength to strength. Throughthe extensive collaboration of both ourcompanies, we have developed a strongworking relationship characterised by opencommunication, teamwork, flexibility andmutual understanding.

“As Prosafe aspires to grow its fleet to become apreferred provider in the floating productionsegment, Keppel will certainly be runningalongside Prosafe. We are committed to deliverquality projects every time.”

At the helm of Umuroa (from right) CH Tong, Lady Sponsor JacquelinePhillips and Bruce Phillips

The project team of Umuroa celebrates its naming

Jan/February 2007 4/11/07, 11:47 AM5



T he rigorous conversion of theOcean Endeavor has won theKeppel FELS team led by Senior

Project Manager Yan Naing Myint a goodbonus for admirable work on the fifthgeneration Victory Class semisubmersible(semi) drilling rig.

Keppel FELS delivered the upgraded semiOcean Endeavor to Diamond Offshore ontime on 6 December 2006.

The 30-something-year-old vessel cameto Keppel FELS in 2005 for upgrading andlife extension.

The entire vessel was stripped down andreconstructed with a brand new body thatincludes sophisticated machinery and amodern drilling package capable ofworking in 8,000ft deep water compared

Bonus for good Endeavorto its previous 1,500ft. The whole livingquarters was refurbished and newamenities were added to bring theaccommodation capacity up to 140 men.

Another main feature was the installationof sponsons to the pontoons of this12-column rig to enhance its stability foroperation in ultra deepwaters.

This 306ft by 306ft by 128ft semi isexpected to serve the exploration anddevelopment needs in deepwater regionssuch as the Gulf of Mexico, South EastAsia and Africa. It has a charter contractin the Gulf of Mexico.

Ocean Endeavor will be capable of drillingdown to 35,000ft and be fully outfittedfor 8,000ft moored operations, withdesign capabilities to operate in water

depths of up to 10,000ft. In addition,the rig will have over 6,000 tonnes ofoperating variable deck load andincreased usable deck space.

Keppel FELS is currently upgrading sistersemi, Ocean Monarch. She is the fourthsemi-upgrade that Keppel FELS isundertaking for Diamond Offshore. Thefirst two semis were Ocean Rover andOcean Baroness. Ocean Monarch isexpected to be operationally ready in thefourth quarter of 2008.

In addition to the semi upgrade, KeppelFELS and Keppel AmFELS are alsoconstructing two jackup rigs for DiamondOffshore. Both rigs are of Keppel’sproprietary KFELS B Class jackup design.

Ocean Endeavor (right) has successfully undergone conversion and has left the yard. Sister vessel, Ocean Monarchis currently undergoing upgrading at Keppel FELS

Jan/February 2007 4/10/07, 12:27 PM6



Singapore: Admiral undocks ENSCOsemi

S panning the entire width of theAdmiral Dock and with less thana metre gap on both dock sides,

the lower hull of ENSCO 8500 inched outslowly but steadily.

The massive semisubmersible, (semi),designed by ENSCO InternationalIncorporated (ENSCO) and built byKeppel FELS, is one of the largest semisto exit the Admiral Dock.

When completed, the rig is capable ofdrilling in water depths of up to 8,500ft,and can be readily upgraded to 10,000ftwater-depth drilling when required.

Despite the current market of tight humanresource and supplies, the ENSCO 8500project is well on-track, thanks to thesynergy of Keppel’s yards worldwide inSingapore and the Philippines.

Yeo Yue Ngiap, Keppel FELS SeniorProject Manager of ENSCO 8500, shared,“The challenge in building the semi wasnot the distance between the differentcountries where we had to build, but toassure our customers that the quality andsafety standards of the Singapore yard areupheld.

“I am proud to say that we overcame thesechallenges even before the project startedby sending our workers in the Philippinesto Singapore for training.”

On course for qualityWhether in Singapore or Kazakhstan, Keppel remains steadfast on its promise ofexcellent project execution. OffshoreMarine reports three of the latest projects.

Reaching new depths in technology

Taking exploration to deeper waters, theconstruction of newbuild Maersk SemiNo. 1 is progressing swiftly. The massive78m lower hull was successfullycompleted and undocked at Keppel FELSon 8 January 2007.

Built to the proprietary DSS™21 designco-developed by Keppel’s DeepwaterTechnology Group, Maersk Semi No.1 isthe first of three such semis Keppel FELSis building for Maersk.

“These are exciting times ahead as we willbe seeing more of such megastructurestaking centrestage at our Singapore yardsover the next few years,” said MichaelChia, ED of Keppel FELS.

The three development deepwater semisare expected to be delivered in 2008,2009 and 2010 respectively.

“In addition to the three Maersk semis,the offshore and marine group will bedelivering another seven new semis over

A splashing start for transportation barge AKKU2

The massive lowerhull of Maersk Semi

No. 1 leaves theAdmiral Dock at

Keppel FELS to bemated with the

upper hull

the next three years to cater to the market’sneed for deepwater Exploration andProduction (E&P) platforms,” Michaeladded.

Kazakhstan: AKKU2 launches intothe Caspian Sea

Over at the Caspian Sea, AKKU2 was offto a splashing start.

She is the second of four transportationbarges that Keppel Kazakhstan isconstructing for Agip Kazakhstan NorthCaspian Operating Company N.V.

The significant milestone comes less thanfour months after the launching of the firstbarge, AKKU1, in October last year whenHis Excellency Nursultan A Nazarbayev,President of the Republic of Kazakhstan,was Guest-of-Honour.

Measuring 92m long, 30m broad, and6m deep, AKKU2, like her sister barges,is equipped with an auto ballasting systemto facilitate skid-on/skid-off operations.

These barges are the first such offshorevessels to be constructed in Kazakhstan.When completed, all four bargesincluding the pipe racks that Keppel isfabricating, will play a significant role insupporting the first phase developmentof the Kashagan oil field.

Jan/February 2007 4/10/07, 12:28 PM7



Boomsville, Brownsville!

C overing an area of about1.5 million sq km and boundedby the USA, Mexico and Cuba,

the Gulf of Mexico is the one of the mostactive oil and gas exploration andproduction area in the world.

More than 40 floating units and about 130jackup units are deployed in the region.

Well-poised to meet the high levels ofactivity in the Gulf of Mexico, KeppelAmFELS is experiencing an escalationof offshore projects during the presentoffshore boom.

CY Ho, President and CEO of KeppelAmFELS, said “Keppel AmFELS notonly kept and maintained its pool ofexperts and skilled personnel during theslow market period in the previous

years, but had continually developedand improved its human resource,facilities and system processes.

“As a result, the yard was fully preparedto meet the demands and capitalise onthe current upsurge of business; both fornewbuild rig projects as well as for therepair and upgrade of existing rigs.”

Apart from the seven jackup rignewbuild projects it is undertaking forDiamond Offshore, Scorpion Offshore,and Atwood Oceanics, the Brownsvilleyard in Texas also takes on variousoffshore platform conversion and repairjobs.

Among these projects are repeats fromcustomers who have entrusted thebuilding, conversions, upgrades andrepairs of their entire fleet to the yards ofKeppel O&M.

Keppel AmFELS on a rollDiamond Offshore, a leading deepwaterdrilling contractor with a fleet of 30 semisand 13 jackups, is one such customer.

To date, Diamond has awarded KeppelAmFELS 17 rig renewal, repair,conversion and major refurbishmentworks.

The semi drilling unit Ocean Saratogaarrived in the yard in August last year andis currently undergoing the requiredrenewal and repair works. Major workswere carried out on its external structureand internal systems. It is scheduled tobe delivered in April 2007.

Pride TennesseePride Arkansas

Jan/February 2007 4/10/07, 12:28 PM8



Pride of a promise delivered

Quick turnaround of 45 days, 100 tonnesof steel replacement, one goal in mind –

to get Pride Arkansas back to work, on time andsafely.

On top of the steel replacement of the hull andpiping, major works include the addition of aneight man quarter and leg strapping.

Lindsay E. Clark, Director of Projects for PRIDEInternational praising Keppel AmFELS for a jobwell done, said, “The Pride Arkansas was a shortand difficult project. Even with the additionalscope of the leg strapping, the project wasaccomplished in a short period allowing the rigto go back to work with the shortest possibleout-of-service time.

“I would like to personally thank the KeppelAmFels team for a job well done and safely. Weappreciate your continued support for PrideProjects.”

Pride Arkansas returned to work on 17 February2007 for Pemex in the Gulf of Mexico.

Another long-time customer, Pride CentralAmerica (Pride) also awarded the yard fast-track repair and renewal jobs on 12 of theirrigs coming out of the Gulf of Mexico.

Pride Wiscousin (LeTourneau Class 84S) andPride Tennessee (F&G L-780 Mod II) arecurrently undergoing 100 – 600 tonnesof steel renewals amongst otherrefurbishment and upgrade works. PrideArkansas (Bethlehem JU-200MC) left theyard recently (see box story)

The yard is also currently undertaking therepairs onboard semi drilling unit Kan TanIV for Beijing Zhiyuan Industries managedby Maersk Contractors and Nabors 659jackup rig for Nabors InternationalManagement.

Pride Arkansas sailing back to work

Ocean Saratoga

Jan/February 2007 4/10/07, 3:08 PM9



R ocky waters, high swells andsensitive sub-cables runningalong the sea-bed. In addition to

that, issues with hook height limitationsand maximum loads on hooks withanticipated maximum fleet angles allowedon the blocks had to be faced. The oddsagainst the Bandra Worli Sea Link projectwere tremendous but Asian Lift, anassociate company of Keppel FELS, rosegallantly to the challenge, completing intwo weeks what would have taken a yearto do.

Doing its part for the project, the AsianHercules, one of Asian Lift’s cranes, lifteda 1260-tonne launching truss andrelocated it to the Worli side of the link.

The Bandra Worli Sea Link ranks amongIndia’s most massive infrastructureprojects that have taken place in the last40 years. Mahim causeway, the only linkpresently connecting western suburbs tothe island city of Mumbai, is highlycongested and suffers from bottlenecksduring the peak hours.

Asian Hercules lifts the odds tobridge India’s waters

the tide could rise or fall every hour,” saidEric Ang, Deputy GM of Asian Lift.

“This information was crucial as it affectedthe movement of the barge. We had tomanage the movement of the barge downto the tiniest detail,” Eric continued.

The third challenge was that there werefour sub-sea cables running across theoperation area. Asian Hercules, guided byan anchor position system, positionedrock anchors precisely at their requiredlocations.

To execute this operation successfully, allparties in the project had to co-operateand co-ordinate their activities precisely.

Finally, as with any cross-border project,work culture differences had to beovercome as well. Asian Lift had to adaptquickly to the local work culture.

The Asian Hercules has a lifting capacityof 1600mt. She is 70m in length and 42min width with a GRT of 5946mt.

Asian Hercules hard at work on the Bandra Worli Sea Link

When opened, the new bridge and roadsystem will transform Mumbai by linkingthe transport system in the western partof the city with the suburbs around Worlivillage.

Hired by the lead Indian contactorHindustan Construction Company(HCC), Asian Lift cemented theirreputation by delivering timely and safesolutions to challenges at hand. As aresult, HCC was able to save valuable timeand resources without having todismantle the entire structure andreinstating it again at the next intendedlocation.

Asian Lift overcame numerous technicalchallenges. First, the elements. Longswells coupled with strong windshampered the operation. Second, thelimited water depth with rocks below wasof grave concern.

“The timing of the operation had to beprecise. We had to formulate our own tidetables to calculate how many centimetres

Jan/February 2007 4/10/07, 12:29 PM10



Asian Hercules lends a helping hand to the crew of P-53 by giving thema new home

For Eric Ang, safety is paramount, “I would notallow operations to begin until the needed safetyprocedures were in place. Barricades were placedaround construction areas to prevent people fromcoming into the work space, and on top of whichnumerous inspections operational briefings werealso held,” he emphasised.

Asian Lift overcame tremendous odds and proveditself to be a world-class solutions provider.

Buoyed up by the strong offshore and marinemarket, Asian Lift is constantly on the move. Someof the numerous projects they have underway orcompleted recently include the lifting of modulesfor FPSO Kikeh at MMHE at Pasir Gudang,Malaysia; the lifting of turret and structures for FPUP-53 at Keppel Shipyard; offshore installation atthe Jasmine Field Gulf of Thailand; offshoreremoval of redundant Jacket and Decks for BSPBrunie and the lifting of modules and turret forseveral FPSO projects at Keppel Shipyard.

2007 got off to a rousing start for KeppelSingmarine with the keel-laying of thetwo specialised vessels for LUKOIL on

1 February.

With the first keel laid, construction of the twovessels – an auxiliary icebreaker vessel and amulti-purpose icebreaking supply vessel – is ontrack.

Laying strong foundationsBoth vessels are expected to be delivered betweenend-2007 and mid-2008. Upon completion, theywill be deployed to the Barents and Arctic Seas.

Meanwhile, Keppel Singmarine was awarded abonus of US$10,000 by their customer, Hadi H.Al-Hamman Establishment (Hadi), for deliveringAHTS vessel, Smit Langkawi 31 days ahead ofschedule.

Presenting the bonus cheque to KeppelSingmarine’s ED Hoe Eng Hock was Hadi’sGeneral Manager T.K. Rajgopal. The ceremonytook place during Keppel Singmarine’s year-endparty on 28 December 2006.

In the same month, Keppel Singmarine alsodelivered its first Ice-class AHTS vessel,MV Svetlyy, ahead of schedule to LukoilKaliningradmorneft and a 50-tonne tugboat,KST Leo, to Keppel Smit Towage.

Keppel Singmarine andLUKOIL lay the keel forone of the twospecialised vessels

Jan/February 2007 4/10/07, 12:29 PM11



Nelson Yeo, ED of Keppel Shipyardadded, “This further strengthens ourbelief that all accidents are avoidableand we are very committed to doing so,not only on this project, but every singleone we undertake.

“Our Accident Frequency Rate for thefirst two months this year was 0.18,compared to 1.34 for the same periodlast year – a marked improvement. Wewill continue to strive to ensure a goodand safe working environment for all ouryards.”

SAFETY FOR SUCCESS

Romulo de Miranda CoelhoProject Manager for P-53, CDC“This wonderful and remarkableachievement does not happen withoutcommitment, endeavour and teamwork,and it reinforces Petrobras’ soundpartnership with Keppel.”

Zero Loss Time Incidents on P-53JayamaranProject Manager, Keppel Shipyard“This project is special because we involveall our contractors in the safety aspects ofthe work from the safety briefings to thearea walks.”

Reginaldo Sarcinelli FilhoP-53 Hull Conversion Manager,Petrobras“To achieve this incredible safety record ona complex project such as this is a greatexample of Keppel and Petrobras’teamwork, commitment and discipline inall areas, from procurement to welding,and project execution to delivery. Everyoneis responsible for themselves and othersin the team. This understanding makes ourworking processes smooth and safe.”

Terry WongProject Manager, Keppel Shipyard“Through training their workers, thesenior management of the sub-contractorscontributed to our safety milestonesignificantly.”

Key ingredient for zero accident on P-53 – teamwork

The gargantuan task of convertingthe Floating Production Unit(FPU) P-53 has crossed the six

million manhours worked without anyloss time incident. This follows theprevious milestone of five millionmanhours achieved in January 2007.

Celebrating yet another milestone werethe project teams from Keppel Shipyard,Petrobras and the Charter DevelopmentLimited Liability Company (CDC). Thiswas held at Keppel Shipyard on 19 March2007 attended by senior managementfrom the companies, subcontractors andforemen.

Jorge Luiz Zelada, General Manager ofPetrobras, commended, “This achievementis not the result of chance but the effortsof all our workers. We are glad to see theproject crossing yet another majormilestone, which would not have beenpossible without the teamwork andpartnership between the project teams.”

Jan/February 2007 4/10/07, 12:29 PM12



I t was double joy for the Keppel andGulf Drilling International (GDI)project teams as they celebrated the

safety achievement and launching of theKFELS B Class jackup rig, Al-Zubarah.

First, there was the commemoration ofone million manhours worked withoutlost time incidents on Al-Zubarah on7 February 2007. For that, Keppel FELSreceived from GDI a safety bonus ofUS$10,000.

On the accomplishment, Yoichi Onoe,COO of GDI, shared, “In GDI, we strivecontinuously to achieve an incident andinjury-free workplace. We understandthat Keppel FELS has put in tremendouseffort to achieve this goal and we reallyappreciate your continuous effort to helpus achieve higher safety standards.”

Michael Chia, ED of Keppel FELS assuredOnoe that Keppel FELS will not rest onits laurels. He said, “At Keppel, we want

Al-Zubarah off to a safe startto create a safe workplace for everyone.We will not only execute our projects well,but will do so safely.”

Then on 8 February 2007, with a knockon the block, a giant structure startedsliding, picking up speed as it glideddown the 225-metre slipway and into thewater.

The block is part of the hull of Al-Zubarah,which is being constructed at KeppelSingmarine yard.

After the successful launch, the hullblocks of Al-Zubarah made its way to thedrydock at Keppel FELS for furtherconstruction works.

Rolling good times – Al-Zubarah made the splash the traditional way during itslaunch at Keppel Singmarine

Divestment of associated company

Keppel Shipyard is currently undertaking the conversion of theex-Aframax tanker into a FPSO vessel, Front Puffin

K SI Production Ltd (KSI),a wholly-owned subsidiaryof Keppel Corporation, has

divested its 30% interest in Puffin

Ltd to Sea Production Ltd (SeaProduction).

Puffin Ltd owns the FPSO Front Puffin.

Completion of the divestment is expectedto take place by early-March 2007.

The total value of the consideration forthe divestment is US$18.3m comprisingUS$9.3m in cash to be paid oncompletion, and a 5% interest in sharesof Sea Production, which is listed on theNorwegian Over-the-Counter market .

The consideration was arrived on awilling-buyer-willing-seller basis, takinginto account the market value of theFPSO Front Puffin. The 5% interest inSea Production was arrived at based onSea Production’s valuation of its assets.Sea Production’s assets comprise twoFPSOs and two Aframax-size tankers.

Jan/February 2007 4/10/07, 12:30 PM13



K eppel Philippines Marine Inc(KPMI), a company listed on thePhilippine Stock Exchange and

a subsidiary of Keppel CorporationLimited, has appointed Nelson Yeo asChairman with effect from 13 February2007.

He has also been appointed Chairman ofSubic Shipyard & Engineering Inc (SubicShipyard), an associate of KeppelCorporation Limited.

Nelson takes over the chairmanship ofKPMI and Subic Shipyard from CharlesFoo, MD (Special Projects) of KeppelO&M, who has also resigned as Directorof both companies.

Charles, 65, who is currently Chairmanof Keppel Singmarine Pte Ltd of Singaporeand Keppel Nantong Shipyard, China,was appointed Chairman of KPMI andSSEI in November 1999.

CB Choo, said, “Under Charles’stewardship, Keppel Philippines hasgrown in strength. He guided KPMI tore-start its shipbuilding business andsupported the Philippine yards in entering

Nelson Yeo is Chairman ofKeppel Philippines Marine

the offshore rig construction business tocollaborate with Keppel FELS in itsactivities.”

The Keppel Philippine yards have inrecent years been enhanced with addedfacilities to support offshore activities,particularly, in the construction of semis.

Amongst his many contributions, Charleshas been credited for raising the safetystandard of the yards, encouraging theupgrading and development of safetypersonnel including sending them toSingapore for further training.

CB Choo said, “Looking ahead, demandfor offshore floating production units andoffshore support vessels will be sustained.Keppel Philippine yards are poised to takeon more offshore support work in theform of repair and upgrading services, inaddition to what it currently is alreadydoing. However in view of increasedcompetition from existing and new yardsin China and Vietnam, Keppel Philippineshave to remain highly competitive.

“I am confident that Nelson, with thesupport of Toh Ko Lin, the President of

Keppel Philippines Marine and the restof the team, will take the KeppelPhilippines yards to new heights.”

Nelson said, “Keppel Philippines willmeet the challenges of the increasedoffshore activities in the region in orderto continue to provide quality productsand services to our valuable customers. Iam working closely with Ko Lin and histeam to add to the excellent work doneby Charles.”

Nelson, 50, began his career withKeppel Shipyard in 1982 when he wasa Shiprepair Management Trainee. Herose through the ranks to becomeShiprepair Manager, BusinessDevelopment Manager of Keppel (UK)Ltd, General Manager of Wing YongEngineering, Yard Manager/PioneerYard and in 1994, became President/General Manager of Subic Shipyard andEngineering Inc. In March 1996, Nelsonreturned to Singapore and wasappointed ED of Keppel Shipyard wherehe still helms.

Nelson received various commendationsduring his tenure in the Philippines. Hewas conferred both The Adopted Son ofMunicipality of Castillejos and theMunicipality of Subic, Province ofZambales, Republic of the Philippines, forhis invaluable and relentless support as apartner in the socio-economicdevelopment of the Municipalities.

Nelson holds a First Class HonoursDegree in Mechanical Engineering fromThe University of Birmingham and aMaster of Engineering in EnergyTechnology from The Asian Institute ofTechnology, under the Shell InternationalPetroleum Company Scholarship.

Charles strikes a pose with Alty. Lilia B. De Lima, Director General of thePhilippine Economic Zone Authority (PEZA) (third from right) and Nelson,new Chairman of KPMI and Subic Shipyard (second from right)

Jan/February 2007 4/10/07, 12:30 PM14



In grand honour for its outgoingChairman, Charles Foo,

employees of Subic Shipyard hostedan appreciation dinner on12 February 2007.

The event held at the Grand Ballroomof the InterContinental Manila wasattended by the SingaporeAmbassador to the Philippines, HerExcellency Lim Kheng Hua, and otherdignitaries from the embassy,representatives of the Philippinesgovernment agencies, customers,friends and colleagues, who came toconvey their well wishes to Charles.

The mood in the ballroom was festiveas the Leggiero String Quartet andFilipina Bossa Nova artiste, Sofia,entertained the guests with classic andlively music. Charles, ever the jollyfellow, regaled the guests with jovialanecdotes throughout the evening ashe enthused from one table to anotherensuring the guests were having agreat time.

The Keppel O&M Group has everyreason to be proud of 65-year oldCharles Foo who has served as theChairman and Director of both KPMIand Subic Shipyard since November1999. The Keppel Philippine yardshave seen unprecedented growthunder his watch.

In 2006, KPMI registered consolidatedrevenue of P1.9b, more than doublethe figure generated in 1999.Consolidated operating profit is atP252m in 2006, a two-fold increasefrom the time he first joined theBoard.

Profit contributions from associatesimproved more than five-fold duringthe same period. Stockholders alsorealised more value for their

investment with improved earnings pershare.

CB Choo added, “In addition to safetywhich he consistently stressed to theyards’ management, Charles alsoemphasised on effective project evaluationand quality excellence. He also initiatedthe Total Quality Process (TQP)programme in 2000 as an integratedapproach towards achieving qualityexcellence.”

Toh Ko Lin, President of KPMI, said,“Mr Foo has been instrumental in guidingKPMI’s shipbuilding program and its entryinto the offshore rig construction industry.His deep concerns for those who haveworked with him and his participativeapproach to management issues have lefta lasting impression on all of us.”

Under Charles’s stewardship, KeppelBatangas Shipyard has successfullydelivered three 45-tonne bollard pullAzimuth Stern Drive (ASD) harbour tugsas well as the lower pontoon of theENSCO 8500 semi drilling platform to itscustomers with excellent safety records.Subic Shipyard has also begun

A deserving tribute

Toh Ko Lin presents a photo mosaic of Charles Foo, made up of small photosof people, events and projects of KPMI and its shipyards

construction of sections of semis forGlobalSantaFe and Maersk. KeppelCebu Shipyard has also startednewbuilding works for three ASDtugboats.

On these achievements, Charleshumbly replied, “It has been apleasure working with the companywith all the challenges as we workedhand in hand to elevate the companyfrom doing repairs and simpleshipbuilding works to one that can dooffshore jobs that requires stringentadherence to safety standards andtechnical process. All of these havebeen realized through team effort. Ithank all of you, especially themembers of the Board and theManagement, for all the support andcooperation.”

“I now turn over the helm to NelsonYeo. With his leadership andexperience, I am confident that KPMIand Subic Shipyard are in able hands.I ask that you also extend to him thesame support that you have given methrough these years.”

Jan/February 2007 4/10/07, 12:30 PM15



Brazil

Employees of Keppel FELS Brasil’sBrasFELS yard welcomedBrazilian State Secretary of

Economical Development, Energy,Industry and Services, Julio Bueno, totheir workplace in Angra dos Reis on 25January 2007.

He was accompanied by State Sub-Secretary of Energy, Renata BezerraCavalcanti and State Sub-Secretary ofCivil Works, José Antônio de MeloPortela.

Bueno’s visit was hosted by Keppel FELSBrasil President & CEO Tay Kim Hock.Also present were Petrobras ProjectManagers Marina Barbosa Fachetti andAntônio Carlos Justi for P-51 and P-52respectively, who talked about the twomega semi constructions at the yard.

In his introduction to the Secretary ofState, Kim Hock spoke about theoperations at BrasFELS and the major rolethe yard plays in the construction of twoof Brazil’s newbuild production floatingproduction units. Kim Hock also sharedthe company’s recent achievements,including the top awards received byKeppel FELS Brasil, the PRODEP Award

from Petrobras for P-51 and the AwardHonor for P-52.

The visit included a tour of the BrasFELSyard where the State Secretary sawfirst-hand, the giant production semiP-52 in its final stage of completion.

Justi revealed that the P-52 is the firstsemi with a national content of above75%. The P-52, with over US$1billion ofinvestment, is expected to produce firstoil in the second quarter of 2007. Marinaexplained how the P-51 project with its70% national content has created 4,800direct jobs for the locals.

A visibly impressed Bueno reaffirmed thegovernment’s support for Keppel FELSBrasil. He said that the Governor of Riode Janeiro, Sérgio Cabral, is committedin supporting the growth of the offshoreand marine industry in Rio de Janeiro.

“Petroleum is the main economic driverfor Rio de Janeiro. It is therefore importantthat we have a pool of good companiessuch as Keppel that produce high qualitywork competently. The P-51 and P-52 areexcellent examples of quality work”, saidBueno.

Also present at Bueno’s visit were Deputy

CEO of Keppel FELS Brasil, DanielChang; President of BrasFELS, GilbertoIsrael; Director of Institutional Relations,Alceu Mariano; and Project Directors forP-52 and P-51, Eduardo Nuñez and JoséPedro.

West Africa

A delegation comprising officials fromGabon and Singapore’s Ministry ofForeign Affairs called at Keppel O&M on5 February 2007.

Hosted by Keppel O&M’s CFO Sit PengSang and Keppel FELS’ ED Michael Chia,the delegation was led by H.E. Jean Ping,Gabon’s Deputy Prime Minister andMinister of Foreign Affairs Cooperation,La Francophonie and RegionalIntegration.

With a small population, abundantnatural resources, and foreign privateinvestment, Gabon is one of the mostprosperous countries in the West CentralAfrican region.

Keppel Shipyard has previouslyundertaken projects indirectly for Gabon.These include the conversion of FPSO

Hosting visitors from afarWith its global footprints, it is little wonder that Keppel O&M draws interest from all over the world.OffshoreMarine reports on some of the recent visitors who called at Keppel in Brazil and Singapore.

An enriching visit to theBrasFELS yard for Julio Bueno(third from left). With him are(from left) Gilberto Israel; ZwiSkornicki; Fernando Jordao,

Angra dos Reis’ Mayor;Tay Kim Hock; Alceu Mariano

and Bento Costa, SecretaryGovernment Integration of

Angra dos Reis

Michael Chia (right) shares industryinsights with Gabon’s Jean Ping

Jan/February 2007 4/10/07, 12:30 PM16



Petroleo Nautipa in 1998. The vessel wasagain upgraded by Keppel in 2002. Morerecently in 2004, Keppel Shipyardconverted the FSO Fernan Vaz forcustomer, Perenco.

Both vessels are currently deployed inoffshore Gabon.

Vietnam

6 February 2007 saw a group of Vietnamesecivil servants at Keppel O&M’s yards.

Spanning different governmentorganisations, these Vietnamese are inSingapore undergoing an English course

The Vietnamese will bring home withthem a new language and insightsinto the offshore and marine industry

at the National Technological Universityof Singapore (NTU).

A short introduction to Keppel O&M wasfollowed by a lively question and answersession with CB Choo.

Of interest to them was Keppel’sinvestment in Vietnam, the group’sstrategic directions and expansion plans,its HR policies, the environmental issuesfacing the organisation and more.

The visitors also had the opportunity totour the Singapore yards and see forthemselves the mammoth structures.

The day ended with a sumptuous lunch,Singapore-style, hosted by CB Choo.

Our hands and fingers are among the most critical partsof the body, yet they are often the most neglected.

Between January and September 2006, hand and finger injuriesaccounted for 43% of total injuries sustained in the course ofwork at Keppel Shipyard.

In a bid to significantly reduce and prevent these incidents,Keppel Shipyard launched the ‘Hand & Finger Safety Campaign’targeted at more than 3,000 employees and subcontractors.

The yard-wide campaign included a comprehensive exhibitionover four days in December last year. On display were case studiesthat emphasised safe practices as well as the consequences ofmishandling equipment.

Tackling safety hands on

Participants applied their knowledge of hand and fingersafety in a questionnaire given out at the exhibition

The campaign was part of Keppel Shipyard’s ongoing efforts toadvocate safety on its premises. It was organised with closeinvolvement from staff in the Workforce Safety Council, as wellas representatives from the Subcontractors’ Health, Safety andEnvironment watch group.

Jan/February 2007 4/10/07, 12:30 PM17



I t was a sight to behold as thecylindrical-shaped vessel sailedgracefully out of the Keppel Verolme

yard in end-January 2007.

The successful completion of theoutfitting for SSP Piranema was the resultof seven months of working round-the-clock in close co-operation with itsowners, Sevan Marine ASA.

In recognition of their effort, Sevan Marineawarded Keppel Verolme a bonus ofEUR150,000 for a job well done,especially during the three-dayinstallation of 1,500 tonnes of modules,packages and equipment.

A FPSO vessel with oil storage capacityof 300,000 barrels, the SSP Piranema has

FPSO completed in theNetherlands leaves for field

an oil processing capacity of 30,000barrels per day and a gas injection capacityof 3.6 million m3 per day.

Its hull and accommodation blocks werebuilt by a Chinese yard, following whichthe vessel was transported to KeppelVerolme for final completion andinstallation of the topside process andmarine equipment.

Keppel Verolme’s Operation Manager andProject Manager, Jan van der Slik, said, “Itake this opportunity to express myappreciation to all the workers, suppliersand subcontractors who have contributedto the success of this project. It is the firstFPSO to be completed in the Netherlandsand we are proud of it, especially withthe zero lost time incident (LTI) recordachieved on the project.”

SSP Piranema departed Keppel Verolmein end-January for Salvador, Brazil.Following completion of acceptancetesting by Sevan, the vessel will bedeployed at the Piranema field in Brazil,under an 11-year contract with Petrobras.

In a note from Petrobras’ Director ofExploration and Production GuilhermeEstrella to Keppel Verolme’s ManagingDirector Harold Linssen, he wrote, “Iwould like to ask you to accept mypersonal and professional congratulationsfor the good performance of KeppelVerolme during the construction of theplatform in Rotterdam.

“I send to you, on behalf of Petrobras, therecognition for the excellent standardsachieved in the yard works concerningzero LTI.”

The round-shaped FPSO unit will bedeployed operation in the PiranemaField in the State of Sergipe

Jan/February 2007 4/10/07, 12:31 PM18



S igns are a powerful form ofcommunication that transcendthe barriers of spoken language.

To help employees internalise theKeppel O&M group core values, theCore Values icons were launched inSingapore and rolled out at the group’soverseas subsidiaries.

In January 2007, Keppel FELSEngineering Shenzhen (China), KeppelFELS Mumbai (India) and Keppel FELSBaltech (Bulgaria), introduced these iconsto their employees.

Anant Shukla, GM of Keppel FELSMumbai, said, “Inculcating core values isessential in developing a common Keppelculture and aligning our employees’conduct to the company’s goals. It alsohelps in unifying diversity in Keppel FELSMumbai, where employees come fromvaried backgrounds.”

The icons also serve as a more effective

Signs that bind

way of inculcating the core values in newKeppelites.

Lyudmil Stoev, GM of Keppel FELSBaltech commented, “The icons help ournew employees to visualise, understandand identify themselves with the values.Similarly, they reinforce Keppel FELSBaltech’s slogan, Can do with candor.

“We introduce new staff to the Core Valuesfrom the first day of employment, using

materials such as the video, images andexplanations which were produced inSingapore.”

Remarking on the successful roll-out ofthe Core Values icons in the three overseasoffices, Aziz Merchant, GM (Engineering)of Keppel FELS said, “The effort andcommitment taken by the various partiesto roll out the Core Values icons acrossthe group is impressive. Well done,everyone!”

Staff at Keppel FELS Mumbai raising the Core Values

K eppel Singmarine (Benoi) yard hasextended its slipway by 35 metresto 225 metres, so as to take on

more newbuilding projects of greaterdeadweight tonnage (dwt), or longer andmore sophisticated vessels. The dwt of theslipway has since been increased from30,000 to 45,000 tonnes.

The slipway which originally couldaccommodate three Anchor Handling Tug/

Enhancing yard capacitySupply (AHTS) vessels can now have anarrangement of three and a half vessels, oran Ice-breaking vessel with the centre stripof a jackup hull.

The slipway recently launched two projectsin less than a month – part of the hull ofjackup rig, Al-Zubarah, for Gulf DrillingInternational and the second Ice-ClassAHTS vessel for Lukoil Kaliningradmorneft.

Under the extended slipway, 1,300-squaremetre area is also transformed into a pipingand outfitting workshop, equipped withnew and advanced welding and cuttingfacilities used for light fabrications.

Keppel Singmarine ramps up itsyard facilities to take on moreoffshore projects

Jan/February 2007 4/10/07, 12:31 PM19



Crafting hallmarks of excellence

A craft. An art-form. Lady Sponsor,Henny Krafft, aptly described Awilco’slatest jackup, WilCraft.

Designed and constructed by Keppel FELS,this masterpiece was delivered ahead of timeto its proud owners, Awilco Offshore, on27 December 2006 and officially named at aceremony on 13 January 2007.

WilCraft, built to the proprietary KFELS B Classjackup design by Keppel’s R&D arm, OffshoreTechnology Development, will be deployed offthe coast in Australia.

Celebrating the creation of a craft were key management from the Anders Wilhelmsen Group, Awilco, Premium Drillingand Keppel at the naming of the KFELS B Class jackup rig, WilCraft

She will join the growing fleet of B Class rigsthat Keppel has designed and built over theyears. Such continued confidence by customersworldwide is testament to the design’ssuperiority and quality.

In a letter to CB Choo, Gjert Wilhelmsen fromthe Anders Wilhelmsen Group commendedKeppel for its KFELS B Class design.

He wrote, “... the B Class jackup is one ofthe world’s best designs. The excellentworkmanship, as performed on this unit, willensure that WilCraft operates to the highestsafety and productivity standards for many yearsto come.”

Despite the yard’s heavy workload, the unitedforce of Keppel FELS’ project and yardoperation teams led by Jay Singam andChor How Jat respectively; and the Awilcoteam led by Pete England, demonstratedmuch commitment and zeal to completingWilCraft in just a short 23 months.

“Whatever we as a customer ask for – You

Can Do! That’s an attitude we appreciate.”Alexander Krafft

Senior VPAwilco Offshore

Jan/February 2007 4/10/07, 12:31 PM20



Henrik Fougner, MD of Awilco Offshore,shared how this remarkable timing cannotbe replicated by any other yard aroundthe world.

He said, “No other yard has the ability tobuild rigs in such an efficient manner. Thisreflects a very professional and well runyard.”

CLOSE TIES BEGETS SUCCESS

Key to this achievement, as CB Chooshared, is Keppel’s open communicationand close co-operation with its customerswhich ensure the success of its projects.

Alexander Krafft (known fondly as Alex),Senior VP of Awilco Offshore, shared atthe naming ceremony his appreciation ofthe long and close ties he and the Awilcoteam have had with Keppel. He alsodescribed the Keppel team as the “mostprofessional team” he had ever workedwith.

On Keppel’s continued investment in itshuman resources which has in turnbenefited customers, Alex expounded,“You continued to invest in people andmanaged to keep your project team inplace, even during the lull times. You havealso stayed loyal to your prime customers.

“So, when the market turned, you wereready and far ahead of your competitors.I think it is now pay back time for you!”

On Keppel’s Can Do attitude, Alexenthused, “Whatever we as a customer askfor – You Can Do! That’s an attitude weappreciate.”

For that, Keppel FELS was awarded abonus of US$20,000 from Awilco inrecognition of the team delivery of aquality project ahead of time.

Sharing a different beat with the next generation

with its Can Do spirit has putSingapore on the world map as theleading designer and builder of thesemegastructures.

“It was an eye-opening experience. Injust one short tour, I have learnt a lotof things that cannot be taught in classand it was very enriching”, said 16-year-old Wang Min, the Band’s SectionLeader.

Top brass

F ollowing a performance inprecision at the WilCraft naming

ceremony, members of the TanjongKatong Brass Band were rewardedwith a once in a lifetime opportunityto tour the mammoth jackup rig,WilCraft.

Awed by the sheer size and scale ofthe WilCraft, the band members weredeeply impressed that Keppel FELS

Jan/February 2007 4/10/07, 12:31 PM21



Alexander Krafft

Talking with Alexander KrafftAlexander Krafft is Senior Vice President in Awilco Offshore ASA (AWO), and has more than35 years of international experience from shipping and the oil and gas offshore industry.He shares his thoughts on Awilco and the offshore industry with OffshoreMarine.

International arena

Which markets have you beenconcentrating on?The North Sea has been our home marketsince we went into the offshore vesselservice market 30 years ago. The AndersWilhelmsen group has been into differentsegments of the offshore service market,such as AHTS vessels, DSVs, drilling rigs,accommodation rigs, shuttle tankers and FPSO vessels through ownership ofGolar-Nor Offshore.

How you would position yourself in theIndian market?As you know, Awilco, has together withSinvest, established Premium Drilling(PD) a drilling contractor company. Wepursue the Indian market through PD.One of the PD rigs (DDI) has now acontract in India.

We consider the Indian market to be ofhigh interest for our high quality/capabilities rigs. The high potential in thismarket is further demonstrated by theinterest Indian companies have shown innewbuilding contracts.

Awilco and Keppel

How did your relationship withKeppel develop?I first met CB and Tong about 25 yearsago through a very close friend to us all,the late shipbroker, Jan Sundt. He was theperson I, indeed, we all wished could havebeen at the naming ceremony. Later,CB and Tong introduced me to Michael.

We have developed our friendship overmany years, meeting in places such asNorway, Singapore and the USA.

What processes did you adopt to selectKeppel to build your drilling rig?Keppel has a proven design, the ability todelivery quality products on time and acompetitive price.

Awilco started ordering rigs at a timethat many did not. What is Awilco’sstrategy?In May 2004, we ordered our first twojackup drilling rigs. By the end of 2004,we were very confident that the marketupturn had started. We believed demandwould continue to increase and that theexcess production capacity (due to thelack of drilling for a few years) wouldcontinue to decrease, hence forcing pricesfor oil and gas to go up. High oil and gasprices historically have resulted inincreased E&P spending.

How difficult is it for you to translateyour technical requirements to thepeople who have to build theequipment you need?

In order to build value, AWO decided in2004 to be a drilling contractor. PD wasestablished in 2005. AWO’s experience inbuilding high quality, deep water jackupdrilling rigs with proven design,combined with the expertise of drillingcontractor PD, gave it the solid base tomove forward.

Based on proven records, we trusted thepeople we contracted to build the rigs.We contracted the rigs on ‘ready to drill’building contracts. Hence, there are veryfew, if any, of the contracted rigspecification we can change withoutpossible cost and delay implications.Today with rigs in operation, it isimportant to us that the yard implement‘lessons learned’ into the rigs to bedelivered.

What do you think were the factorsthat contributed to the 23-monthcompletion of the rig?The Keppel FELS team is very professionaland coordinated. A 23-month delivery isvery short. Due to a good specificationand contractual wording, no issue whichwould have had negative effect on deliveryor price was raised. Both teams haveworked well together.

The future

What major challenges andopportunities do you foresee forAwilco?To further develop AWO and capitaliseon PD as a recognised drilling contractorsfor operating jackup and semis drillingrigs, as well as to expand in theaccommodation market.

What major challenges do youforesee for yards such as Keppel?The challenge will be to continue tomaintain your technical and projectmanagement leadership. Attract, developand keep good people. Be able to quicklyadapt to new markets and to compete oncost. Take on turnkey contracts and todeliver a quality product on time at cost,will, I do believe, continue to be your bestcompetitive edge.

Jan/February 2007 4/10/07, 12:32 PM22



A n in-depth analysis of thelimitations and benefits of thedifferent deepwater floating

production system is critical according toJohn Murray, Director of TechnologyDevelopment at FloaTEC, LLC.

He shared this insight at the DeepOffshore Technology InternationalConference & Exhibition, “UnlockingDeepwater Assets through Technology”,in Houston in December last year.

Addressing the complex and changingrole of deepwater E&P, John presentedan analysis of the three deepwaterfloating production options thatFloaTEC, LLC offers – the TlpTEC,SparTEC, and SemiTEC solutions.

John revealed that the decision on aparticular design-type is guided bydifferent criteria, including the operatingenvironment, availability of fabricationfacilities, suitability of the operator’sdevelopment plan, and sometimes anoperator’s propensity toward a certain

Reliable solutions for deepwaterdesign based on familiarity andinfrastructure in managing the delivery ofa particular floater type.

He also elaborated on some of theconsiderations that will influence thedecision:

• Small in-place motions to enable drytree production and drilling risers. Theeconomics of this capability, particularlyin view of present-day availability ofdeepwater Mobile Offshore Drilling Units,is favourable for systems that can drill andcomplete wells from the same productionplatform. Both the TLP and Spar have thiscapability.

• Large, open deck areas to enable moreefficient operations. This allows for goodventilation, lay-down areas, andequipment arrangements on single-deckelevation. The Semi and TLP are moreadaptable to open areas.

• Quayside integration to enableinstallation and commissioning of

topsides on the floating hull at a quaysidelocation, thereby reducing costsconsiderably. It also helps mitigateoperational risks by eliminating the needfor heavy-lift equipment. Minimum at-seacommissioning also reduces start-upcosts. The Semi and TLP offer suchsolutions.

• Water depth sensitivity to enable arange of water depths given the additionalbuoyancy requirements related toincreased mooring and riser loads as waterdepth increases. This is essential giventhat as water depth increases, there is aneed for additional buoyancy formoorings and riser loads. In suchinstances, the Spar and Semi are thepreferred choice.

• Redeployment is another aspect toconsider. Semis are typically designed andequipped to enable hull transportationover short to intermediate distances. Theycan also be brought back to quayside tobe retrofitted and redeployed for adifferent function.

K eppel FELS, together with sistercompany, Offshore TechnologyDevelopment (OTD) jointly

sponsored the Jackup Asia Conference &Exhibition 2006 organised by PetroMin.

Matthew Quah, Executive Engineer atOTD presented on Effective Use of a RapidPenetration Management System toMinimise Risk.

He was joined by other speakers fromindustry heavyweights such as drillingcontractors ENSCO, classification societyDNV, geosciences surveying companyFugro and engineering services companyTechnip.

Conversing about jackupsTechnology has always been critical inKeppel’s maintenance of its position as anindustry leader and prudent investmentsare often made in order to find thesolutions for the oil and gas industry.

This jackup conference facilitated thesharing of information within theindustry.

Having delivered the most number ofnewbuild units in the last decade, KeppelFELS has the expertise and experience toenhance industry knowledge to push theboundaries in shallow water exploration.OTD which has developed the renownedKFELS B Class design has also developed

a suite of critical equipment systems forthe safe movement of the jackup rigs.

Michael Chia (second from right),ED of Keppel FELS speaks jackupswith members of the industry

Jan/February 2007 4/10/07, 12:32 PM23



Seeing the scale of the rigs and the globalspan in which Keppel operate in theinternational offshore and marineindustry, I felt proud that my daughter isworking for a big company. Moreover, itis one that is born and bred in Singapore.Mrs Angela ChanProud mother of a Keppelite

The show sheds light on our friends inthe shipyard industry of Singapore andthe work they carry out everyday. Usinga drama as a medium was very effectiveto help viewers understand the industrybetter. Being part of the Navy, I have

Peak performance“I know how to build an oil rig!” eight-year-old Jonathan gleefully told his mother. Jonathan Cheongwas one of thousands of Singaporeans who kept their eyes glued to their television screens every nightfor The Peak, MediaCorp’s most ambitious serial to date. The 21-episode drama serial, aired fromJanuary 2007, caught the imagination and hearts of the young and old alike with a vibrant portrayalof the offshore, marine and maritime industries fleshed out by dynamic and colourful characters.

Hitting home, The Peak attracted an average reach of over 795,000 viewers, topping at 918,000 forthe last episode. The overwhelming response was gratifying for the sponsors – the Keppel Group, theMaritime and Port Authority of Singapore, the Singapore Maritime Foundation and the Association ofSingapore Marine Industries. From the thumbs-up from many viewers, including Keppelites themselveson The Peak, it seems that the sponsors have achieved their objectives.

already some background knowledge ofthe marine industry, now I might considerjoining the shipyard industry in thefuture.Jonathan ChoNS man in the Navy

I think in terms of recruitment, it shouldhelp more people understand the scaleof the offshore industry, and itscontribution to Singapore’s economy. Forsure, not many people know of orunderstand the industry. Before I startedcovering conglomerates ten years ago, Inever even heard of it myself. As for

Andrew (third from left) with cast and crew 8-year-old Jonathon, with his brotheKeppel’s reel heroes

recruitment, at the very least, newcomerswill have a point of reference, which isquite valuable.Choo Tse WeiResearch AnalystMerrill Lynch (Singapore)

Even as a Keppelite, watching the serialhas given me a clearer understanding ofour offshore and marine business. Afterthe show went on air, I received manyinquiries about job vacancies in ourKeppel yards.Jeanie LimReceptionistKeppel Corporation

Jan/February 2007 4/10/07, 12:33 PM24



offers dynamic, exciting and challengingjobs.Emma Izabella LimEvent ManagerWOMAD

“Hopefully, what is shown in the dramais what it is in real life. I like the workingenvironment as it is very dynamic.Guoh Ding LingBachelor of Science (Building) StudentNUS

The Peak depicted the challenges ofworking in the O&M field and thesatisfaction that could be derived from thecompletion of a mega project. It ignitedmy interest in joining this industry.Lim Kim PengEnvironmental Engineering StudentNUS

It is a potentially dangerous environmentbut people are protected with propersafety measures in place. I rememberspecifically their ‘dress code’ – helmet,goggle, safety belt and overall – that thisattire is mandatory at all times is laudable.Matthew ChiaBusiness StudentSingapore Polytechnic

on, with his brother, Nicholas and grandfather, glued to The Peak The P-52 semi props up many a scene

The setting of the show is very originaland it was a pleasure to watch. It exposedme to the working environment of theoffshore and marine industry, giving mea greater understanding of the business.Emily SiewStudent awaiting her ‘O’ Level Results

After watching the show, I would notobject to my children working in theO&M industry as long as they follow thesafety procedures. I do not think that theenvironment is dangerous anymore.Susan SitoeEvergro Properties

Watching The Peak brought back fondmemories for me, especially theinteresting, unusual scenes, some ofwhich I assisted during filming.

There was a scene where Dawn Yeoh whoplays the character of Zhen Ya wasdreaming that she was dancing with hersuperior Fang Hong An (Iceman), on thehelideck of a rig.

For that half an hour when the scene wasbeing filmed, the yard stood still as theywatched the ‘princess’ dancing.Andrew Gabriel OngKeppel Group Corporate Communications

I think that the show was good! I got tosee what the shipyard is like and an ideaof what an oil rig is. Most people do notget the chance to go onto an oil rig butthrough the show, they get to see what itlooks like and its facilities onboard.Mdm Tay SoonHousewife

I think that it is refreshing to see themarine industry portrayed in a positiveway in a setting for a drama. It is different.Rigs and shipyards provide a dramaticbackdrop. Hopefully this will openMediaCorp’s eyes to the possibilities ofsetting dramas in potentially differentsettings.Marcus HandAssociate EditorLloyds List

I learnt about the different processesinvolved in making a rig and thatcompanies had to bid and win contractsfor projects. I was impressed with thestrong team attitude and how the teamworked together competently to meettight deadlines.

I used to think that the industry wasmechanical and routine. Now, I think it

Continued on page 26 �

Jan/February 2007 4/10/07, 12:33 PM25



In the reel world, they are the captains of industry.In the real world, the actors of The Peak were

clueless about the Offshore & Marine (O&M)industry.

So to get into character and the O&M industrymore realistically, the actors and the film productioncrew had to make time to experience the workingconditions in the O&M industry throughsimulations and going onboard ships.

The cast and crew share their experience:

Elvin Ng who played Cai Zhi Hang thinks that theindustry is very interesting and if given theopportunity, he would like to learn more about it.When he first went to the simulation centre, he

Peak-a-boo behind the scenes

Shipyard gear can be sexy. Fans turn up in hardhats at the HougangMall Roadshow

Who says that theyard is no placefor females!

found the experience of manning a ship outat sea very vivid and even felt sea-sick.

Christopher Lee, despite his convincingperformance as project manager Fang HongAn, did not know much about the business.During the filming, he was impressed byhow every detail was important in ensuringsafety, stability and the high quality of shipsand vessels to face the harsh elements outat sea. The highlight for him was filming inBrazil where he enjoyed the thrill of ahelicopter ride over breathtaking scenery.

On camera, the characters, Tian Jun, ZhiHang and Xiao Yang, are good friends. Offcamera, Qi Yi Wu (Tian Jun) and JeanetteAw (Xiao Yang) were actually closer havingworked together previously. True tocharacter, Elvin Ng (Zhi Hang) felt like the“third party”. But with some help andcoaching from his co-stars, he slowlybecame more comfortable being part of thetrio, and portrayed the friendship on screenwith more ease.

In the serial, Xiao Yang taught Zhen Ya tocycle. Ironically, Jeanette herself cannotcycle to save her life in reality. In true CanDo spirit, Jeanette proved that withdetermination, everything is possible.

The Peak took 18 months to completefilming. Shooting a scene on land for theprecise angles already required much skilland effort, what more, filming a scene outat sea and from the air.

Filming in busy yards meant that cast andcrew had to reckon with noisy constructionin the background. Often, the actors grewhoarse shouting out their lines.

But as they say, no pain, no gain. It had beena journey that had brought the wholeproduction crew across Singapore and theworld but sweet is their reward when thedrama serial peaked TV ratings, as one ofSingapore’s most watched serials.

� Continued from page 25

Jan/February 2007 4/10/07, 12:33 PM26



rom the guardhouse, youcan’t really see the actual‘‘Fhubbub that marks the lives

of Keppelites at Keppel FELS. The firsthint of it was the introductory briefingsby the human resource and safetypersonnel.

“The concerned department headsbriefed us about life at the Keppel FELSyard, stressing the safe work environmentthat had cemented Keppel O&M’sreputation as an industry leader. Theorientation programme then took us fromthe comfortable and serene office settingto where the real action takes place outin the field.

“In the Production Department, thepeople clad in ‘white’ ruled. For a fewminutes, we stood there trying tocomprehend the environment that hadleft us awestruck. With much effort weshook off the spell and, accompanied bya clerk, we were taken to the warehouse,where each one of us got our PersonalProtective Equipment consisting of safetygoggles, boots and overalls.

“The following day’s yard tour unveiledthe professionalism and motivation thatmarked every Keppelite at Keppel FELS.Organised and disciplined, the workforceseemed energetic and passionate. Theyard was strewn with various workshops,where machining, fabrication and otheractivities were carried out in an assemblyline manner. The yard tour left us allamazed.

“I was put in a team handling projectnumber 267 – Deep Driller 3. S.K.Leow,Assistant Section Manager for

Through the eyes of an internKeppel FELS’ reputation as an employer of choice has drawn many aspirants to itsranks, not least interns eager to experience life at the world’s largest offshore rigbuilder. Ali Hassan, a Mechanical Engineering undergraduate from the NationalUniversity of Singapore, tells us about his three-month stint at Keppel FELS.

Commissioning, my supervisor, ensuredthat the three-month internship wouldprove to be an enlightening industrialexperience for me.

“Days began with the Senior SectionManager, Roy Lim, touching on dailyoperational matters and safety issues. Therest of the day was spent onboard, whereI learned about various marine anddrilling systems. Noel and Kalam, mymentors, explained the systems andprocesses to me and patiently answeredall of my questions.

“The highlight of this attachment was themodular training program which coveredtopics ranging from engine overhaul, rigterminology and piping to marketing andproject management. Also, we had achance to gain some practical experiencesuch as welding.

An eye-opening experience in Keppel yards for intern Ali Hassan

“Beyond our daily work, we were touchedby the sincerity that went into ensuringwe interns gained the most from this rareexperience. The monthly feedbacksessions conducted by Mui Yen, KeppelO&M’s Human Resource Officer, gave usa chance to share our job satisfaction andprogress development. She also welcomedour feedback on improving theprogramme.

“The process was rigorous but it gave usvaluable hands-on experience withpractical engineering. We had goodmentors who boosted our confidence andprovide opportunities for us to lead andlearn. It was indeed an eye-openingexperience that complemented theuniversity curriculum and exposed us allto the realities, as well as the scale ofrigbuilding at Keppel O&M. “

Jan/February 2007 4/10/07, 12:33 PM27



Acacia Lodge partners policein community outreach

A s dusk descends upon Acacia Lodge,the residents can be heard streamingdown from rumbling buses and

making their way across the turnstiles. Theworkers, made up of a multitude of nationalitiessuch as Bangladeshis, Indians, Chinese,Burmese and Filipinos either head back to theirrooms to cook their dinner or head to thecanteen for a hot meal.

What do these workers do after dinner? WinNaing, a Myanmese, who has been at the lodgefor 10 years, said, “Most of the time, we stayindoors to watch TV at home. We are too tiredto do anything else.”

He was replying to this and other questionsposted to him at a recent visit by Residents’Committee (RC) members of Bukit Batok EastZone 2 and Spring View on 3 February 2007.Jointly organised by Acacia Lodge and the

Bukit Batok Neighbourhood Police Centre(NPC), the community outreach programmewas conducted in the form of a dialogue sessionto encourage interaction and understandingamong residents living in the vicinity. Thesession was facilitated by Keppel GroupCorporate Communications Executive,Roy Tan.

The RC members were given a full tour of theLodge by Steven Lee, the General Manager.They were impressed by the self-containedelements of the Lodge. Besides the wet market,canteen and mini-mart, there is a beer gardenand a fully fitted gymnasium. Amenities alsoinclude a barbershop, computer centre, callcentre for overseas calls and a co-operativeoffering banking services.

To dispel any concerns the residents may haveabout the guest workers, NPC’s AssistantSuperintendent (ASP), Chua Sei Yong, gave apresentation on the work being done to ensurethe Bukit Batok area remains safe.

He highlighted that contrary to commonperception, guest workers were actually thevictims of crime rather than the perpetrators,and trouble makers usually turned out to bejuvenile delinquents.

In joint patrols with Acacia Lodge and theSpring View RC, the police also found that noneof the guest workers caught for misdemeanourswere from Acacia Lodge. ASP Chua furtherhighlighted the effectiveness of the co-operationbetween the RC, Acacia Lodge and the BukitBatok NPC in keeping the neighbourhoodsafe.

Govinda Raju, an Indian national who has beenin Singapore for 11 years said, “I like it here inSingapore because it is safe. I have made manyWith its facade looking like a middle-class residential development, the

Lodge houses more than 3,000 workers of Keppel

Jan/February 2007 4/10/07, 12:33 PM28



friends here, some of them Singaporeans. Welike to go to Little India for shopping onSunday.”

He continued, “Acacia Lodge, is a goodenvironment to come back to.”

“There are many regulations,” he said, butconcluded that, “the regulations in the Lodgeare good because it keeps the place safe andclean.”

Asked what he did on weekends, Liton, aBangladeshi, said, “We like to go to MustafaCentre on Sundays. After work at 4.30pm, wecome back here to bathe, then take a privatebus to Mustafa Centre. It costs S$2.00 to takethe bus. We always come back before 11pm.”

Many of the guest workers at Acacia Lodge takecourses to upgrade their skills. For instance,Liton who is a foreman of welding, andAyyappan, a crane foreman, are currently takinga course on welding in the National Institute ofTechnical Education Course (NITEC). Keppelsponsored these courses.

Ayyappan has made a life for himself here overthe past 11 years. Commenting on his life inSingapore, he said, “When I first came here, itwas because of the money. Now, I am gladI have the chance to upgrade myself and provideeven more for my family back home.”

Replying to queries about fights in the lodge,Win Naing had this to say: “In my 10 years here,I have never seen any fights break out; maybesome misunderstandings but never fights.”

Ayyappan added, “Here, if we are involved in amajor incident, we could be easily sent home.If there are any problems, we tell the roomleaders who will feedback the information tothe management. When the new workers comehere to stay, we make sure we help to guidethem and teach them the rules.”

Impressed by the interviewees, the RC memberswent away from the community outreachsession satisfied that the residents of AcaciaLodge were well-disciplined and well-taken careof in the lodge.

Sharing information and sharing lives – the guest workers talk about theirlives at Acacia Lodge

Guest workers have their own wet market at Acacia Lodge

Jan/February 2007 4/10/07, 12:34 PM29



often reluctantly, to introduce measuresof support for its national industry.” Thiswould “exacerbate the suspicion on thepart of politicians that shipping issomehow a special case, unregulated andbeyond their grasp. On the part ofpoliticians and administrators, this cancome home to haunt us when things gowrong.”

“First”, he argued, “we need to doeverything we can to combat the growingcanker of regionalism in the regulation ofshipping, and second, we need to takesteps to tackle the level of apparentignorance of shipping and its institutionson the part of politicians and, to raise theawareness of decision formers.”

He welcomed the formation of the AsianShipowners’ Forum (ASF) and hoped thatthe ASF will establish itself as a force forencouraging the entire Asian shippingcommunity in raising its strength ininternational regulatory discussions.

“I doubt whether any Government todayis doing as much as the SingaporeGovernment to promote the country’smaritime role, in the broadest sense. ButI do not think any maritime community

Giving the shipping industry a facelift

S hipping does not have a poorimage. It has no image. So assertedChris Horrocks, the ex-Secretary

General of the International Chamber ofShipping (ICS).

“Shipping”, he emphasised, “has alwaysbeen out of sight, and therefore out ofmind. This factor has a profound impactnot only on how the general public viewsthe shipping industry, but also on howthe shipping industry views itself – [that]it is unloved and unsupported.”

Horrocks was speaking at the 21st AnnualChua Chor Teck Memorial Lecture(CCTML) held at the SingaporePolytechnic on 24 January 2007.

Having served ICS for more than 28 years,the recently retired Secretary General waskeen to share his insights on raising theprofile of the shipping industry. His talkbrought more than 300 industryprofessionals together to discuss theimage of shipping.

In his speech, Horrocks examined thebalance between governmentalregulations and self-regulation, and thesuccess and failures that the industryfaced in promoting itself to politicians,regulators and the general public.

The industry, according to Horrocks, hastended to “want to get on with the jobwithout interference and to regardpublicity as an unnecessary intrusion onits daily activities.” While this is a traitwhich has led to greater independenceand commercial efficiency, it has backfiredto a certain extent – the industry has notcaught the public imagination and thusdoes not compete to attract the best andthe brightest youngsters like otherindustries do.

Another issue highlighted is that, “whilethe shipping industry is remarkably freeand unregulated, it forces governments,

can rely entirely on its government torepresent its views on the global stage. Theindustry must not only also play its fullpart, but be seen to be playing its full part,in helping to create the regulatoryenvironment in which it wishes to operatein the years to come.”

He recommended that the industry,publicise their wares more effectively ona national level, “Not by expensive PRcampaigns, but by providing a constantflow of messages, website information andthe like which contribute towards a betterawareness of what shipping is and does.Our industry should no longer beregarded as a shadowy one somewhereout there in the mist, but must berecognised as an essential and respectedpart of the daily lives of us all”, he added.On that, he received rousing applause bythe audience who were more thanforthcoming with their opinions andquestions.

The discussion on this weighty topic ofgiving the shipping industry a facelift hadits lighter moments. During the questionand answer session, there was even asuggestion that to promote shipping, amovie of a Hollywood scale should be

Chris Horrocks engaging the audience, which includes (first row from R to L)Mrs Horrocks, Lim Chee Onn, Executive Chairman of Keppel Corporation andCB Choo, sitting in front, with his insights on the shipping industry

Jan/February 2007 4/10/07, 12:34 PM30



made to debunk the negative image ofshipping as a result of films like “Piratesof the Caribbean” and “Titanic”. It wassuggested that actors like Brad Pitt orLeonardo Dicaprio could take on the leadrole in the movie.

Given the effusive reaction from theaudience, it was plain to see that the

M embers of the SingaporeAlumni of the NewcastleUniversity upon Tyne

converged at the Tanglin Club on 26 January2007 to commemorate the successful tenureof Vice-Chancellor Professor ChristopherEdwards as he prepares to step down.

Sponsored by Keppel O&M, the cocktailreception was an occasion for some 100alumni to renew old ties and forge newfriendships.

CB Choo, an old boy of the University,lauded Prof Edwards in his welcomeaddress.

He said, “Vice-Chancellor Edwards hasbeen instrumental in building therelationship and programmes betweenNewcastle University and Singapore. At

Reaffirming old tiesKeppel, we have been routinely sendingour staff on scholarship programmes toNewcastle because we believe ineducating our employees at one of thevery best universities.”

Keppelites, of which there were more than30 at the evening reception, have had along association with the University. Thelate Chua Chor Teck was a student in the1960’s and quite a number of KeppelO&M’s senior management are still activealumni members with many youngKeppel scholars attending the University.

In return, Prof Edwards in his speech said,“Keppel is represented all around theworld, and is involved in world-classprojects. The University is proud to haveplayed a part in Singapore’s and Keppel’stalent development. We will continue to

build on our relationship with Singaporeand develop our courses here.”

The University has replicated a Mastersof Science programme in MarineTechnology in Singapore. This long-distance programme allows Singaporeansto gain the expertise of the UK Universitythrough their post-graduate degrees, evenas they continue to work locally. Since itsintroduction in 2004, Keppel hassponsored 24 existing employees toattend this part-time programme.

Last year, there were three employees whograduated with a Master’s degree inMarine Technology while this year, therewill be eight new students from Keppelparticipating in this long-distanceprogramme.

Minister (Prime Minister’s Office) Lim Boon Heng from theclass of 1970 with CB Choo (middle), and Vice-ChancellorProfessor Christopher Edwards (right)

Catching up on the good ol’ days

industry is filled with many people whoare passionate about their work and aboutthe future of shipping.

Chris Horrocks was also the SecretaryGeneral of the International ShippingFederation (ISF) and Chief Executive ofMarisec. He was a Governor of the WorldMaritime University in Malmö, Sweden

from its formation until 2006, andcontinues as a Visiting Professor.

The CCTML is organised by the Societyof Naval Architects & Marine EngineersSingapore (SNAMES) in memory of thelate Chua Chor Teck, formerly MD ofKeppel Shipyard and a pioneer ofSingapore’s maritime industry.

Jan/February 2007 4/10/07, 12:35 PM31



T he Keppel Employees Union (KEU), Keppel Shipyard and KeppelSingmarine awarded bursaries to 33 children of their employees in

December last year.

Phang Weng Onn, General Secretary of KEU, said, “As employers and unionmembers, we are interested in the welfare of our workers, as well as the needsof their families.”

KEU lends support to 33 students

Lending a hand to students in need

F or their academic excellence,68 deserving children of proudKeppelite got more than a pat on

the back. At a bursary and education grantpresentation ceremony on 27 January2007, the children received theirawards.

Organised by the Keppel FELS Multi-Purpose Co-Operative Society (KFELSCo-op), the event is part of employeewelfare programmes that are extended tocaring for Keppelites’ families.

Said Daniel Sim, Chairman of the KFELSCo-op Bursary Awards Committee, “Theaward recognises deserving and needystudents who display a Can Do! attitudeand passion for continuous learning. By

providing them the financial support fortheir academic studies, we hope toreinforce the importance of education tothe young.”

Muhammad Khairil, a recipient of thebursary award is proof that the awardpushes students on. Despite being just12 years old, his motto is to ”work hard,play hard”, said the young man whofavours National Geographic TVprogrammes over cartoons.

Another recipient, Ryan Leyng, a fourthyear student from the NanyangTechnological University (NTU), has beenreceiving the award since his primaryschool days. For Ryan, the award helpsto defray costly expenses for textbooks.

Shaping the future

The Koh family – Shirley, Jasmine andShirleen

NTU undergrad Ryan Leyng, a recipientof the award since primary school, hasbenefited from KFELS Co-op’s bursary

“We have chosen to invest in Keppelites’children as it is equivalent to investingin their future and ours,” said CH Tong,at the award ceremony. “Hopefully, theseyouths will be our future Keppelites,” headded.

Sisters Shirley Michelle Koh, 17, andShirleen Cindy Koh, 11, both awardees,are definitely potential candidates. Theirproud mother, Jasmine Koh, Keppel FELS’HR Admin Assistant, has been withKeppel FELS since 1988.

Shirleen, too would like to join Keppelsome day, especially after watching ThePeak. To her, joining such a hugecorporation would give her with a greatsense of achievement. Receiving the awardfor six years, she was overheard tellingher mother, “I promise to work evenharder.”

Jan/February 2007 4/10/07, 12:35 PM32



U nder an agreement between EssoAngola Block 15 Limited, Single BuoyMoorings and Keppel Shipyard, the

trainees were chosen from an initiative to trainAngolan nationals with skills for offshore work.

George Mock, Training Initiative Coordinatorfrom ExxonMobil, said, “We are proud toprovide training opportunities for Angolannationals as part of our commitment to enhancelocal capabilities in the country. The trainingprogram at Keppel Shipyard was designed andadministered in a professional manner. “

The trainees underwent a month-long intensiveBasic English course at The British Council,before starting their training in KeppelShipyard.

All trainees received training in shipyard safety,rigging, occupational first-aid and the abilityto recognise hazardous working operations.Following this, they underwent training forthree months in their trade of choice. Theylearnt to be riggers, crane operators, projectcontrollers, scaffolders, safety officers andlogistics officers.

Even as the Angolans worked hard in theirtraining, they also played hard by taking partin the leisure activities arranged by the yard.These included visits to Singapore’s places ofinterest as well as competing in sports andgames with their fellow yard workers.

As they immersed themselves in the culture ofSingapore, friendships were forged andlanguage barriers breached. Before they knewit, the trainees were graduating from the course.

To celebrate the completion of their stint inSingapore, Keppel Shipyard held a specialgraduation ceremony for the team at theRaffles Town Club on 11 January 2007.

Lifelong skills for AngolansKeppel Shipyard was a training ground for 12 Angolans between August 2006 toJanuary 2007.

About 50 guests attended the graduation,including teachers from The British Council,HR staff and trade trainers from KeppelShipyard.

Each trainee stood proud as they received theirgraduation certificates, and they were all eagerto go back home and apply what they had learntin Singapore.

Team leader Charles Pedro, who receivedtraining in logistics, said, “Due to the training,I have gained enough experience related to mytrade. The training made me discover plenty ofthings that I didn’t expect to learn. It is goingto change my life status.”

Safety Officer Jose Goma said, “I have learnt tobe aware of hazards and also that any job iswell done if it is done safely.”

Nelson Yeo, ED of Keppel Shipyard (centre) and Chee Jin Kiong, ED ofKeppel O&M HR (second from right) together with the Angolan Trainees

Jan/February 2007 4/10/07, 12:35 PM33



Keppel Cebu Shipyard

T he 2006 Christmas party atKeppel Cebu was celebratedwith triple joy as Keppelites

participated in a Holy Mass, whichsignified the importance of blessing andthanksgiving, followed by an appreciationlunch for the dedicated and their spouses.It concluded with a sports festival on thesame day.

Keppel FELS

For the Keppel FELS Engineering crew, itwas a wild “Western Night” on the21 December 2006. The party at TheChevron was sponsored by all Managersand Principal Engineers from theEngineering Department.

With a beautifully created environment,a fancy dress theme, excitingperformances by each project team, andattractive prizes, it was indeed a night tobe remembered by the Engineeringdepartment.

On the 29 December, it was another partyfor the Keppel FELS Engineeringdepartment. A joint activity with theMarketing Department, the year-end

Celebrating the Keppel joyparty was held at the cafeteria underthe theme “Sailing with Keppel”.

Highlights of the day were thepresentation of the winning team from the‘Western Night’ as well as celebrationswith representatives from Keppel’sengineering offices worldwide, namelyfrom Bulgaria, Mumbai (India), Shenzhen(China), the USA and the Philippines.

Keppel Singmarine

Keppel Singmarine, too had their fun attheir year-end party on 29 December2006, held at the staff recreation centre.

Besides the good food presented forlunch, the party had also a wellness themewhich encouraged employees to exerciseand keep fit. An instructor from CaliforniaFitness Centre was invited to demonstratesome fitness routines.

ED Hoe Eng Hock welcomed theemployees, reiterated the challengesahead and reaffirmed Keppel’s core values.

Keppel Shipyard

Another celebration was held at the

Keppel Shipyard’s year-end party on30 December 2006.

Kicking off the programme was a lunchfor all employees. There wereperformances put up by Keppelites andeven a karaoke singing session for thesporting and the spontaneous. Staffshowcased their hidden singing talents,performing in front of the supportivecrowd who cheered for their fellowcolleagues.

Arab Heavy Industries (AHI)

Colleagues over at AHI also had theirNew Year party on 1 January 2007, where750 employees participated. At the party,25-year service awards were presented to31 deserving employees .

Safety incentives awards were also givenout to seven employees who have shownhigh standards of safety practices. This ispart of the safety drive launched by thecompany to promote a zero loss timeincident yard. A slew of excitingprogrammes followed, including bellydancing, talent showcases performed bythe employees and Raffle Draws.

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Jan/February 2007 4/10/07, 12:36 PM34



1. Committed Keppelites in Cebu being awarded for theirdedication and hard work2, 3 & 4. Fun, dance and laughter at the Keppel FELS“Western Night”5. ED Hoe Eng Hock affirms the Core Values with employees of Keppel Singmarine6. Exercising is a great way to keep fit for the boys ofKeppel Singmarine7. Boogie to the music at Keppel Shipyard8. GM (Operations) of Keppel Shipyard, Abu Bakar, savouringlunch with fellow colleagues9. Safety incentive awards ceremony – it pays to be cautiousat AHI

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Jan/February 2007 4/10/07, 12:37 PM35



Around our yardsOffshoreMarine tracks works at various Keppel yards.

Philippines

Subic Shipyard and Engineering

Name : MV “CEMTEXSINCERITY”

Owner : U-Ming Marine TransportCorporation

Country : TaiwanType : Bulk CarrierDWT : 80,531GRT : 43,642ETA : 22 January –

February 2007Scope : Drydocking; Hull

preservation; Cargo holdsupgrading; Steel worksbetween cargo hold anddouble bottom tank onport / starboard bottomgirder; Face plate andbracket renewal; Mainengine turbochargeroverhauling

Name : MV “YM COMFORT”Owner : Yang Ming Marine

Transport CorporationCountry : TaiwanType : Container ShipDWT : 30,700GRT : 29,872ETA : 27 December 2006 –

1 February 2007Scope : Drydocking; Hull

preservations; ICCP systemservicing; Main engineauxiliary bloweroverhauling; Hatch coverssteel repairs and blasting /painting; Cargo hold tanktop blasting and painting;Double bottom tankchipping and painting; Forepeak tank and upper wingtank chipping and painting;Renewal of double bottomtank internal structures;Repair of structure platesbetween hatches; Repair ofelectrical cable manifolds

Name : MV “MAERSK TEAL”Owner : A. P. Moller ñ Maersk A/SCountry : DenmarkType : Car & Truck CarrierDWT : 13,778GRT : 44,500ETA : 20-31 January 2007Scope : Drydocking; Hull

preservation; Stern sideramp blasting and painting;Anchor blasting / chainblasting and painting;Lifeboat and miscellaneouscranes load testing; Rudderclearances; Thrusters bladepolishing / dye checking;Main engine turbochargerand auxiliary enginegovernor overhauling;Chrome liner renewal;Propeller removal / refit;Bow and stern thrustersoverhauling; Overboard andship side valves overhauling

MEDJUGORJE HOEGH TRAMPER DB 101

EMERALD HALO SAN PAOLOWIN SHUEN SHING

Jan/February 2007 4/10/07, 12:37 PM36



Name : MV “YM CULTIVATION’Owner : Yang Ming Marine

Transport CorporationCountry : TaiwanType : Bulk CarrierDWT : 69,163GRT : 35,905ETA : 20 December 2006 –

5 January 2007Scope : Drydocking; Hull

preservation; Cargo holdsupgrading; Repair offreshwater and top sidetanks; Face plate sideframes renewal in cargoholds; Hatch covercompliance IACS URS30;Engine room pipingrenewal; Dewatering systeminstallation; Engine roomvent fan, main enginecylinder head, piston andliner overhauling;Turbocharger and air cooleroverhauling; Tailshaftsurvey

Keppel Cebu Shipyard

Name : M/V “OLO MEDJUGORJE”Owner : Aboitiz Transport System

corp.Country : PhilippinesType : Cargo/PassengerDWT : –GRT : 4,433.27 TDate : ETA – 27 December 2006 –

9 January 2007Scope : Various electrical motors

overhauling, anchorwindlass and mooringwinches brake bond andliner renewal; Replating ofabout 80 tonnes of wagon /lower deck and tankinternals; Ramp works;External hull blasting andpainting; Astern thrusterworks; Anchor and anchorchain works; Servicing; Seavalves; Sea chest cleaning;Renewal of hull anodes;

Ballast tanks internalcleaning and inspection

Keppel Batangas Shipyard

Name : HOEGH TRAMPEROwner : Hoegh Fleet Services ASCountry : NorwayType : Vehicle CarrierDWT : 16,376GRT : 56,835Date : 2-26 February 2007Scope : Hull cleaning, blasting and

painting; Car deckreplating; Main engineoverhauling and pipingworks

Name : WIN SHUEN SHINGOwner : Win Far Fishery GroupCountry : TaiwanType : Fish CarrierDWT : 3,742GRT : 2,955Date : 26 December 2006 –

12 February 2007Scope : Docking works; Hull

cleaning, blasting andpainting; Crop out existingboiler; Overhauling of4 winches; Withdrawal andpolishing of tailshaft /propeller; 12 tonnes ofsteelworks

Name : EMERALD HALOOwner : Anglo Eastern

Shipmanagement Ltd.Country : Hong KongType : Bulk CarrierDWT : 25,977GRT : 47,240Date : 29 January – 10 February

2007Scope : Drydocking; Hull cleaning,

blasting and painting;Main engine turbochargeroverhauling; Hatch coveroverhauling; Cargo holdrenewal; Tailshaft /propeller machining; Sterntube renewal.

Name : SAN PAOLOOwner : Negros Navigation

Company Inc.Country : PhilippinesType : Passenger/CargoDWT : 1,983.30GRT : 5,908.67Date : 18-31 January 2007Scope : Hull cleaning, blasting and

painting Stern tube,tailshaft and CPP propellerworks; Sea chest, sea valves,zinc anodes overhauling;Electrical motor cleaningand megger testing; Coolerrepair; Piping works;Quarter ramp repair; 30tonnes of steelworks

Singapore

Keppel Shipyard Tuas

Name : DB 101Client : Mcdermott South East Asia

Pte LtdCountry : SingaporeType : Crane/Derrick BargeDWT : –GRT : 32,508Date : 15 January 2007Scope : General surveys and repairs

Name : SRIRACHA POWERClient : Eurasia International (S)

Pte LtdCountry : SingaporeType : Chemical TankerDWT : 49,330GRT : 22,607Date : 31 January 2007Scope : General surveys and repairs

Sriracha Power

Jan/February 2007 4/10/07, 12:37 PM37



Keppel Seghers’ Prism technology will raise the overall energy efficiency of the Moerdijk plant in the Netherlands

Keppel Group NewsbytesKeppel Corporation, the parentcompany of Keppel O&M, achievedanother record year as Group attributableprofit rose to an all-time high ofS$751m in 2006. This was S$187m or33% higher from the S$564m achievedin 2005. The year also saw newbenchmarks set for all of its keyperformance indicators.

Earnings per share of 95.4 cents were 32%above the previous year. Return on equityscaled a new high of 19.1% and economicvalue added of S$423m more thandoubled that of 2005. Group revenue ofS$7,601m was S$1,913m or 34% higherthan that of the previous year. This is anew record surpassing the previous highof S$6,218m achieved in the financial year2000.

Meanwhile, Group profit before taxexceeded the S$1b mark for the first timeto S$1,139m, a 38% increase from theprevious year.

——●——

Keppel Telecommunications &Transportation (Keppel T&T) hasacquired, through its wholly-ownedsubsidiary DataOne (Asia) (DataOneAsia), a 50% stake in the Europeandatacenter operator, Premier Data CentresLimited (PDC). PDC was wholly-ownedby Real Capital International Limited(RCI).

Situated in Dublin Ireland, PDC wasfounded in 2002 and provides state-of-the-art datacenter co-location andbusiness contingency services. Its facilitiesare designed to provide the higheststandard of security, air handling and highdensity resilient power. PDC has a verystrong occupancy rate with over 95% ofits facility fully let on long-term multi-year co-location agreements to leadinginternational blue chip companies in theIT and telecommunications industryincluding Hewlett Packard (HP) andGlobal Voice (GV).

——●——

The combined strengths of PDC and Keppel T&T willprovide an ideal platform for expanding Keppel’sdatacentre business in Europe

Keppel Seghers, the environmentaltechnology division of Keppel IntegratedEngineering (KIE), has secured aS$35 million contract offeringtechnologies and services to expand anexisting Waste-to-Energy (WTE) plant inMoerdijk, southwest of the Netherlands.

The Moerdijk plant is the third largestplant in the Netherlands with a capacityto treat 660,000 tons of solid waste ayear.

The contract is for the engineering,procurement, fabrication, testing andcommissioning of Keppel Seghersíproprietary Prism technology, and a steamboiler for the expansion of the WTE plantowned and operated by AfvalverbrandingZuid-Nederland NV (AZN).

Jan/February 2007 4/10/07, 12:38 PM38



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 SARua 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 Shipyard LtdNo. 9 Yan Jiang Road, Nantong City, Jiangsu ProvinceP.R. China 226005Tel: 86 513 8530 0000Fax: 86 513 8530 0011Email: [email protected] Person: Lee Tai Kwee, President

Keppel FELS Engineering Shenzhen Co., Ltd.3th Floor, Chiwan Petroleum BuildingChiwan Road No. 5P.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, 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

NORWAYKeppel Norway ASStrandgaten 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 4604www.keppelphilippinesmarineinc.comEmail: [email protected] /[email protected] Person: Toh Ko Lin, President

Keppel Batangas ShipyardBarrio San Miguel, 4201 Bauan, BatangasPhilippinesTel: 63 43 7271532 to 36Fax: 63 43 7271453Email: [email protected] Person: Kok Boon Heng, President

Keppel Cebu Shipyard IncDad Cleland Avenue, 6015 Lapu-Lapu City,Cebu, PhilippinesTel: 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 AmFELS Inc.PO 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 USA Inc.5177 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

Jan/February 2007 4/10/07, 12:38 PM39



K eppel FELS has secured a repeatorder for a KFELS N Classjackup rig from Skeie Drilling &

Production ASA (formerly ProdJack AS),a member of the Skeie Group.

The new rig is slated for delivery in thethird quarter of 2010.

CB Choo said, “The repeat order for theKFELS N Class is reflective of arequirement for a high-end drilling rigwith capabilities to address technicalissues in the exploration and developmentof fields in very harsh environments suchas the North Sea.”

Bjarne Skeie, Chairman of Skeie Group,“There is an increasing demand for moresophisticated and innovative rigs to meetnew challenges in the development of oil

Keppel secures repeat order fora KFELS N Class jackup rig

and gas fields in the North Sea region.The KFELS N Class jackup rig, with itssuperior specifications, is highly capableof meeting these challenges while settinga new benchmark for operations in theNorth Sea.

“There is a great potential for sustainedand stable investment in the region, andthe timing is right given the abundantopportunities.”

Characterised by severe wind gusts andwaves over 30 metres high, the North Seais one of the world’s most challengingareas for oil and gas exploration andproduction.

Developed by Keppel’s R&D arm,Offshore Technology Development, theKFELS N Class jackup rig will provide

“There is an increasing demandfor more sophisticated andinnovative rigs to meet newchallenges in the developmentof oil and gas fields in theNorth Sea region. The KFELS NClass jackup rig, with itssuperior specifications, is highlycapable of meeting thesechallenges while setting a newbenchmark for operations in theNorth Sea.”

Bjarne SkeieChairman

Skeie Group

customers the flexibility of having a unitthat can undertake drilling andproduction activities concurrently forexploitation in marginal fields. Capableof operating in water depths of up to 430ftand drilling depths of down to 35,000ft,the rig will have features to readily acceptprocess modules for production activities.The design is in full compliance with thedemanding and technical challengingrequirements of rigs operating in theNorwegian sector of the North Sea.

When completed, the KFELS N Class rigswill be the largest jackup rigs ever to bebuilt in Singapore. It will also be amongthe world’s largest jackup rigs to beconstructed for the North Sea.

Inking the second KFELS N Class deal is CH Tong, MD/COO of Keppel O&M(right) and Birger Skeie, MD of Skeie Drilling & Production

Jan/February 2007 4/11/07, 11:48 AM40

Documents

Satisfied customer – Prosafe - Keppel Offshore & Marine