Keppel clinches specialised shipbuilding contracts worth S$140 million

8-February-2010

Keppel Offshore & Marine Ltd’s (Keppel O&M) specialised shipbuilding arm, Keppel Singmarine Pte Ltd (Keppel Singmarine) has clinched three newbuilding contracts totaling about S$140 million.

The first contract was awarded to Keppel Singmarine by Dutch dredging and marine contractor, Royal Boskalis Westminster N.V. (Boskalis) for the construction of a 159-metre long rock dumping fall pipe vessel to be completed in late 2011.

Rock dumping fall pipe vessels are capable of depositing large amounts of rocks in deep waters with great precision to protect and stabilise cables and oil and gas pipelines on the seabed.

The vessel to be built by Keppel Singmarine will have a carrying capacity for 23,000 tonnes of rock. She will be installed with propulsion machinery and special rock handling equipment supplied by Boskalis to carry out precise rock depositing works at water depths of more than 1000 metres with Dynamic Positioning (DP-2) capabilities. This vessel will also have a flexible fall pipe with a Remotely Operated Vehicle installed at the lower end for better positioning. As the vessel moves along her track under dynamic control, the rocks will be lowered through the fall pipe at a controlled rate.

Mr Hoe Eng Hock, Executive Director of Keppel Singmarine, said, “We are very pleased that Boskalis has chosen Keppel to build its latest vessel.

“Having accumulated years of experience and built more than 400 specialised ships of different designs and functions, we have honed and proven our ability to tailor-make vessels for every frontier, be it in deep waters or under icy conditions.

“Rock dumping fall pipe vessels are a good example of highly specialised ships that require detailed engineering customised to the owners’ requirements. Leveraging our proven track record and expertise in this area, we are confident of delivering a quality vessel to Boskalis’ expectations.”

Mr. Theodorus L. Baartmans, member of the Board of Management, Royal Boskalis Westminster N.V, said, “At Boskalis, we have long experience of working with Keppel and are familiar with its quality of work.

“Keppel Singmarine is well known for its strong expertise in handling sophisticated vessels, especially those equipped with diesel electric drives and dynamic positioning capabilities. We are confident that they will be able to deliver on their promises as we work closely towards the success of yet another challenging project.”

In addition to Boskalis’ vessel, Keppel Singmarine has also secured another two tugboat contracts. The first is to build a 65-tonne bollard pull twin-screw Azimuth Stern Drive (ASD) tugboat with FiFi1 notation for firefighting for repeat customer, Smit International. This tugboat is based on the proprietary MTD 3265T design developed in-house by Keppel’s Marine Technology Development unit.

The second tugboat contract involves constructing a 50-tonne bollard pull twin-screw ASD tugboat for an Indonesian customer PT. Pelayaran Trans Parau Sorat.

The tugboats are scheduled for completion in the fourth and first quarter of 2010 respectively.

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

About Keppel Singmarine

Keppel Singmarine is the specialised shipbuilding arm of Keppel O&M group, a wholly-owned subsidiary of Keppel Corporation Limited. Keppel O&M’s 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 for solutions for the offshore and marine industry.

About Royal Boskalis Westminster N.V

Royal Boskalis Westminster N.V. is a leading global services provider operating in the dredging, maritime infrastructure and maritime services sectors. They provide creative and innovative all-round solutions to infrastructural challenges in the maritime, coastal and delta regions of the world including the construction and maintenance of ports and waterways, land reclamation, coastal defense and riverbank protection. Boskalis has a versatile fleet of over 300 units and operates in over 50 countries across five continents.

Keppel Corporation Limited, press release