Port Security Conference

June 9, 2003

$96 million fab contract for Keppel FELS
Singapore's Keppel FELS Ltd. has been awarded a US$96 million fabrication project by BP Exploration (Shah Deniz) Ltd, operator of the Shah Deniz Gas Export Project.

The fast-track contract involves fabrication of the platform and living quarters of the TPG500 self-installing jack-up drilling/production/quarters platform. The TPG 500 system is proprietary to Technip Coflexip, designers for the project.

The TPG500 will be deployed in the Shah Deniz gas-condensate field in the Caspian Sea, approximately 100 km to the south of Baku, Azerbaijan. Delivery of First gas to Turkey, the primary sales market for the Shah Deniz project is targeted for end 3Q 2006.

Ex-yard delivery from Keppel FELS is scheduled for July 2004, when the client's transportation contractor will ship the four hull strips of the TPG500 jack-up to the Caspian Sea for integration with other in-country fabrication modules.

Tong Chong Heong, managing director/Chief Operating Officer of Keppel Offshore & Marine said, "We are pleased to secure this challenging job of fabricating the highly complex TPG500 platform in the given time frame. Our knowledge of the Caspian has been demonstrated by the completion of a jack-up rig and the current construction of a semi-submersible in Baku."

Keppel FELS is a leader in offshore rigs, the leader in the design and construction of jack-up drilling rigs, having built the most number of the world's jack-ups. It is a member of Keppel O&M, which has a network of 16 shipyards engaged in offshore, marine and specialised ship construction businesses.

The contract secured is not expected to have any significant impact on the net tangible assets and earnings per share of Keppel Corporation for the financial year ending 31 December 2003.

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