Keppel secures repair and upgrading contracts worth S$30 million

Press Releases - Offshore & Marine, 30-June-2009

Keppel Offshore & Marine Ltd (Keppel O&M) has secured contracts worth S$30 million through its overseas subsidiaries for the upgrading and repair of three semisubmersibles (semis).

Mr Tong Chong Heong, CEO of Keppel O&M, said, “Keppel O&M’s network of yards in the key markets, coupled with their strong execution capabilities and quick turnaround, continue to advance the Group as the choice partner for the repair, upgrading and completion of rigs anywhere in the world.

“We are pleased that our customers Diamond Offshore, China Oilfield Services Limited and Noble Drilling affirm this by returning to our global yards for their needs. With our closely-integrated yards backed by resources from headquarters in Singapore, we will continue to deliver projects to our customers’ satisfaction.”

In the Netherlands, Keppel Verolme clinched a contract for the repair and upgrade of a semi accommodation rig, COSLRIVAL (ex-Port Reval), from China Oilfield Services Limited.

The rig arrived in May 2009 and has been docked in the 500,000 dwt mammoth dry-dock for general class renewal surveys, inspections, overhauls and repairs. The work scope includes the upgrading of electrical switchboards, piping systems and then overhauling of marine equipment as well as deck crane reinforcement.

COSLRIVAL is the third accommodation support rig for Norwegian waters to arrive in Keppel Verolme for a major overhaul and upgrade.

In Brazil, Keppel FELS Brasil clinched contracts for the repair and upgrading of two semis — Noble Drilling’s Noble Paul Wolff and Diamond Offshore’s Ocean Yatzy.

The upgrading of Noble Paul Wolff includes the renewal of piping systems, anodes in tanks and steel work. Leased by Petrobras from Noble Drilling, the rig will return to work in offshore Brazil after her repairs in the BrasFELS yard.

She is the second Noble vessel in the BrasFELS yard after the arrival of Noble Dave Beard in May 2009 for mechanical completion.

Meanwhile, the Dynamic Positioning drilling semi Ocean Yatzy will have structural repairs carried out on a lifeboat platform, stability column and helideck as well as several piping and steel deck renewal works.

Keppel Verolme and Keppel FELS Brasil are wholly owned subsidiaries of Keppel Corporation, through Keppel O&M, a leader in offshore rigs, ship repair and conversion and specialised shipbuilding.

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 in solutions for the offshore and marine industry.

The contracts are not expected to have material impact on the net tangible assets or earnings per share of Keppel Corporation for the financial year ending 31 December 2009.

Keppel Corporation Limited, press release