Keppel FELS and J.Ray win $1 billion TLWP contract

FloaTEC Singapore Pte Ltd , an equal joint venture between Keppel FELS Ltd and J. Ray McDermott, has signed a contract worth about US$ 1 billion with the Papa-Terra Joint Venture, consisting of Petrobras and Chevron, to build and operate the P-61 Tension Leg Wellhead Platform (TLWP).

The project scope covers design, engineering, construction, maintenance and installation work, as well as a three-year contract to operate the TLWP. It will be jointly undertaken by Keppel FELS and J. Ray, who will use their U.S.-based JV, FloaTEC LLC, to perform global engineering and basic design work and to manage the supply of risers, well systems and tendon components for P-61.

Designated for BrazilÕs Papa-Terra field in the Campos Basin, the P-61 TLWP will work alongside the P-63 FPSO vessel to handle up to 180,000 barrels of oil per day. P-61 will be built at KeppelÕs BrasFELS yard in Angra dos Reis, fulfilling local content requirements, while critical components such as the tendons, temporary buoyancy modules and piles will be fabricated at J. RayÕs Morgan City, La. facility. Targeted for completion by mid-2013, P-61 will be installed on location in the Papa-Terra field by J. Ray.

Mr. Eric H. Namtvedt, President of FloaTEC LLC said, ÒThis project underscores FloaTECÕs ability to draw from its parentsÕ global resources to offer a robust and cost effective solution when our customers need one most. Almost the entire scope of the project will be implemented using the combined resources of FloaTEC, Keppel FELS and J. Ray.

ÒThis is a key strength of our proposal, which should enable us to better manage risks, ensure the high integrity of the TLWP design and generate efficiencies in the work processes. Through the P-61, the first dry tree floater completion development offshore Brazil, we will be investing technology, know-how, and international performance standards in a sustainable way.Ó

Papa-Terra is a heavy oilfield project located at the Exploratory Block BC-20 in Brazil's most important oil-producing region in the Campos Basin. The offshore field is located in a water depth of 1,180 m. Jointly owned by operator Petrobras (62.5%) and Chevron (37.5%), the Papa-Terra field is expected to achieve first oil by mid-2013, and bring Brazil closer to its goal of becoming a net oil exporter.