Marine Log

October 12, 2006

Keppel O&M wins FPSO and AHTS orders

Keppel Offshore & Marine Limited (Keppel O&M) has secured contracts worth a total of S$210 million (US$132 million) to carry out the conversion of two floating production storage and offloading (FPSO) facilities and the construction of five (5) Anchor Handling Tug/Supply (AHTS) vessels.

The conversion contracts were clinched by Keppel Shipyard from regular customers, Monaco-based Single Buoy Moorings (SBM) and Frontline FPSO Ltd (Frontline), a new business unit of Frontline Ltd. of Bermuda.

For SBM, Keppel Shipyard will convert the 310,000 dwt VLCC Litiopa into the FPSO Saxi, which will have oil production capacity of 100,000 barrels of oil per day (bopd) and storage close to two (2) million barrels of oil.

When completed in early 2008, the vessel will be leased to ExxonMobil for the Kizomba C Development, offshore Angola in West Africa.

Another wholly owned subsidiary of Keppel O&M, Keppel Singmarine Pte Ltd has secured five 62-metre AHTS vessels from first time customer, Whitesea Shipping & Supply LLC (WSS).

The vessels will be constructed in Keppel Nantong Shipyard, bringing the total number of vessels being built by the Chinese yard to 13 units. Deliveries for these vessels are scheduled between 2008 and early 2009 for operation in the Middle East.

Based in the United Arab Emirates (UAE), WSS is a regular customer of Arab Heavy Industries (AHI), an associate of Keppel O&M, which services WSS's fleet of offshore support vessels.