Latest News From Keppel Offshore & Marine Limited

Wednesday, November 1st, 2006

• Keppel AmFELS to build four jackup rigs worth US$780 million
Keppel AmFELS Inc. (Keppel AmFELS), the US wholly-owned subsidiary of Keppel Offshore & Marine Limited (Keppel O&M), has secured contracts from Rowan Companies, Inc. (Rowan) to build four jackup rigs.

Each rig is valued at US$195 million, which includes owner furnished equipment.

“The construction contracts with Keppel AmFELS afforded us the opportunity to accelerate the expansion of our offshore drilling business by partnering with a first class organisation and shipyard,” said Mr Danny McNease, Chairman and Chief Executive Officer of Rowan.

Mr Tong Chong Heong, Managing Director & COO of Keppel O&M and Chairman of Keppel AmFELS, said, “Rowan is a world class drilling contractor and a new customer to Keppel. We are glad that they recognise Keppel’s capability and commitment to meet customer requirements on time, within budget and without incident.

“We endeavour to build a long term partnership with them based on integrity, reliability and delivery of quality products.”

Deliveries of the four rigs are slated progressively between the second quarter of 2010 through to 2011.

The rigs will be built to the LeTourneau Super 116E design with initial leg lengths of 410ft for operating in water depths of up to 350ft and drilling depths of down to 30,000ft. When completed, the rigs will be capable of drilling high-pressure, high-temperature and extended-reach wells.

Keppel AmFELS has just delivered the second rig to Scorpion Offshore and is constructing six more jackups: three for Scorpion Offshore; and one each for Atwood Oceanics, Diamond Offshore and Perforadora Central. It is also building a sludge vessel for the City of New York.

A wholly-owned subsidiary of Keppel Corporation through Keppel Offshore & Marine, Keppel AmFELS engages in the construction, refurbishment, conversion, life extension and repair of a comprehensive range of mobile rigs and platforms. Located in Brownsville Texas, Keppel AmFELS is one of the best-equipped offshore yards in the region.

Rowan Companies, Inc. is a major provider of international and domestic offshore contract drilling services. The Company also owns and operates a manufacturing division that produces equipment for the drilling, mining and timber industries. The Company's stock is traded on the New York Stock Exchange.

The contracts are not expected to have material impact on the net tangible assets and earnings per share of Keppel Corporation for the financial year 2007.

For further information, please contact

Grace Chia
Assistant Manager
Keppel Group Corporate Communications
Tel: (65) 64136 434
Mobile: (65) 9694 1328
Email: grace.chia@kepcorp.com

• Keppel-led consortium clinches US$1.2 billion Petrobras contract

The consortium of Keppel FELS Brasil S/A and Technip Brasil Engenharia, Instalacoes e Apoio Maritimo S/A (Technip), FSTP Pte Ltd, has secured a US$1.2 billion contract to build a semisubmersible Floating Production Unit (FPU) for Petrobras Netherlands BV (PNBV).

FSTP is a 75/25 consortium company between Keppel Offshore & Marine (Keppel O&M) and Technip. The rig, to be named P-56, is expected to be delivered ex-yard in the last quarter of 2010.

P-56 will be a repeat of the P-51 FPU which is currently being built at Keppel FELS Brasil’s BrasFELS yard.

With this contract, the total orders secured to-date in 2007 by Keppel O&M is S$6.25 billion.

Mr Tong Chong Heong, Managing Director and Chief Operating Officer of Keppel O&M, the parent company of Keppel FELS Brasil, said, “We are glad to support Petrobras in their pursuit of national content as they expand oil and gas production capacity.

“Our ‘Near Market, Near Customer’ strategy has enabled us to better serve our customer, Petrobras, while participating with them the creation of jobs in the country. We look forward to further strengthen our relationship with Brazilian offshore oil and gas companies. We want to be their strategic partner as they pursue the expansion of their business.”

Keppel FELS Brasil will carry out the detailed engineering of the lower hull and accommodation, as well as the construction and integration of the entire FPU. Technip will be responsible for the overall engineering and detailed engineering of the topside and offshore mating.

With displacement of 50,000 tonnes, the FPU will be 110 meters long and wide, and 125 meters tall. It is expected to operate for 25 years.

The P-56 will be positioned at depths of 1,700 meters and about 124 km off the coast. Capable of processing and treating 170,000 barrels of liquids and 100,000 barrels of 16º API oil, 6 million cubic meters of natural gas, and of injecting some 280,000 barrels of water in the reservoir, the P-56 will be connected to 22 wells, 11 of which are oil and gas producers and 11 are to inject water.

Keppel O&M has participated in more than 10 projects directly and indirectly for Petrobras and is currently carrying out several projects for the Campos region. It has just completed the conversion of the P-53 shipshape FPU which will have the world’s largest turret. It has delivered to the field location the P-52 FPU, which is expected to achieve first oil soon. The P-51 FPU is currently under construction at Keppel FELS Brasil’s BrasFELS yard.

Keppel FELS Brasil is a wholly-owned subsidiary of Singapore listed Keppel Corporation Limited through Keppel O&M. It operates BrasFELS yard in Angra dos Reis, which is the most comprehensive shipyard in the Southern Hemisphere. Keppel O&M is a global leader in design and construction of offshore rigs, ship conversion and repair and specialised shipbuilding. Its ‘Near Market, Near Customer’ strategy is bolstered by a global network of 20 yards in the Asia Pacific, Gulf of Mexico, Brazil, the Caspian Sea, Middle East and the North Sea regions. Integrating the experience and expertise of its yards worldwide, the group aims to be the provider of choice and partner in solutions for the offshore and marine industry.

Technip Brasil Engenharia, Instalacoes e Apoio Maritimo S/A is a wholly-owned subsidiary of Technip Offshore International (headquartered in Paris), controlled by TECHNIP S.A. which is ranked among the top five corporations in the field of oil, gas and petrochemical engineering, construction and services.

PNBV is a wholly-owned subsidiary of Petrobras SA, which is the state oil company of Brazil, engaged in exploration, production, refining, trading and transportation of petroleum and its by-products at home and abroad.

The contract is not expected to have material impact on the net tangible assets and earnings per share of Keppel Corporation for the financial year ending 31 December 2007.

For further information, please contact

Sarah Seah (Ms)
Deputy General Manager
Group Corporate Communications
Keppel Corporation
Tel: +65 64136 420
Mobile : +65 9363 0274
Email: sarah.seah@kepcorp.com

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