December 7, 2004

Keppel ups stake in Brazil yard

Keppel Corporation's Keppel Offshore & Marine Ltd unit has acquired a further 22.75% interest in Brazil's FELS Setal S.A. from PEM Setal. This takes Keppel O&M's shareholding in the Brazilian yard from 60 to 82.75%.

The cash consideration for the purchase is US$9 million. This was arrived at on a willing buyer and willing seller basis taking into account the net assets of the company and existing contracts.

Mr Augusto Mendonca, President of PEM Setal said, "We are in the midst of restructuring the PEM Setal Group and we are pleased to have an extremely supportive partner in Keppel O&M.

Mr Tong Chong Heong, Managing Director & Chief Operating Officer of Keppel O&M, said, "The growth of FELS Setal is very important to all stakeholders in revitalizing the offshore and marine industry in Brazil and the creation of jobs. Keppel is committed to this."

FELS Setal, the Brazilian subsidiary of Keppel O&M, is the industry leader in Brazil with the best-equipped offshore yard in South America. The company is currently involved in the construction of the P-51 and P-52 semi-submersible platforms for Petrobras SA, Brazil's national oil company.

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