KEPPEL Investor: August 2010

Wednesday, August 18, 2010

KEPPEL SHIPYARD SECURES CONTRACT TO MODIFY FPSO OSX-1. See press release.

Key Points

Keppel Shipyard Limited (Keppel Shipyard) has secured a contract for the modification of the Floating Production Storage and Offloading (FPSO) vessel OSX-1, worth approximately S$50 million.
The FPSO OSX-1 is owned by OSX 1 Leasing B.V., a subsidiary of OSX Brasil S/A. Commencing in the third quarter of 2010, Keppel Shipyard’s scope of work includes procurement, detailed engineering and the modification of the topside process modules. Keppel Shipyard will work with BW Offshore, which will provide project management, engineering services and technical guidance services to OSX 1 Leasing B.V..
Scheduled to leave Keppel Shipyard in the second quarter of 2011, the vessel will be deployed in the Campos Basin, offshore Brazil on a 20-year lease to OGX Petróleo e Gás.

Keppel to raise stakes in an associate shipyard in the Philippines. See press release.

Key Points

Keppel Corporation Limited (Keppel Corp), through a subsidiary Keppel Philippines Marine Inc, (KPMI), is raising its shareholdings in two associated companies, Subic Shipyard and Engineering Inc. (SSEI) and Consort Land, Inc. (CLI) to boost its Near Market, Near Customer strategy in the Philippines.
SSEI is a leading shipyard located in Subic Bay, the Philippines, which provides repair, conversion and building services to shipowners and offshore operators in the region. It also carries out routine and specialised machinery reconditioning works, as well as steel fabrication for marine and offshore structures.
CLI owns 72 ha of land including the 20 ha on which SSEI is situated.
A total cash consideration of approximately S$86.5 million will be made by Keppel to raise its effective stakes from 44% to 83.9% in SSEI and from 33.7% to 38.7% in CLI.
The sale and purchase of shares in both companies is expected to be completed by the end of September 2010, following which, SSEI will become a Keppel subsidiary.

Keppel breaches new depths in the offshore wind energy sector. See press release.

Key Points

Offshore arm Keppel FELS commercialises its new wind turbine installation vessel design for deeper waters in partnership with leading fleet owner and operator Seafox Group.
Keppel FELS Limited’s (Keppel FELS) multi-purpose self-elevating platform (MPSEP) design has been chosen by the Seafox Group (Seafox) as the basis for a new-generation, wind turbine installation vessel that can withstand harsh offshore environmental conditions all year round in water depths of 65 metres in the North Sea.
A 75/25 joint venture (JV) company has been formed between Keppel FELS and Seafox respectively, to build and own this US$220 million vessel. Seafox has the option of acquiring Keppel’s stake in the JV company.

KEPPEL SECURES BONUS FOR SAFE DELIVERY OF GREATSHIP’S THIRD MULTI-PURPOSE VESSEL. See report.

Key Points

Keppel Singmarine Pte Ltd (Keppel Singmarine), the specialised shipbuilding arm of Keppel Offshore & Marine Limited (Keppel O&M), has delivered its third multi-purpose platform supply & support vessel (MPSSV) to Greatship Global Offshore Services Pte. Ltd (Greatship) with a perfect safety record, meriting a bonus of US$10,000.
Keppel Singmarine is currently constructing the fourth MPSSV for Greatship which is expected to be delivered in the third quarter of 2010.