Early delivery of FPSO brings BrasFELS a $2 million bonus

FPSO petrobras photoNOVEMBER 19, 2012 — Keppel FELS Brasil S/A's BrasFELS shipyard in Angra dos Reis, Rio de Janeiro, Brazil has delivered FPSO Cidade de São Paulo 19 days ahead of schedule and with an excellent safety record, earning the yard more than $2 million in bonuses.

FPSO Cidade de São Paulo's hull was converted at the Cosco shipyard, in China. Module installation, assembly, and integration work got underway in early 2012, and was done entirely at BrasFELS.

FPSO Cidade de São Paulo has a production capacity of 120,000 barrels of oil per day (bopd) and is able to compress 5 million cubic metres of gas per day.

It is the first of two Floating Production Storage and Offloading (FPSO) projects BrasFELS is undertaking for MODEC and Toyo Offshore Production Systems Pte Ltd (MTOPS), a joint venture between MODEC and Toyo Engineering Corporation.

For achieving an excellent safety performance throughout this two-year project, MTOPS awarded BrasFELS with a safety bonus in addition to an early delivery bonus.

FPSO Cidade de São Paulo will soon proceed to operate for Petrobras and its partners in the pre-salt region of the Santos Basin.

BrasFELS' work scope for this FPSO project comprised the fabrication of riser manifolds, laydown areas and the flare tower as well as the assembly and integration on board the FPSO.

Mr Kwok Kai Choong, President and Chief Executive Officer of Keppel FELS Brasil, said, "We appreciate our growing ties with MTOPS, MODEC and TOYO. The successful and early delivery of FPSO Cidade de São Paulo bears testament to the good teamwork and understanding between our companies and our ability to provide a high quality production vessel for Petrobras' operations. We are also thankful for these safety and early delivery bonuses, which are great encouragements to our efforts to ensure safe, prompt and high quality services for all our customers.

"As the most comprehensive yard in Latin America today, BrasFELS offers a full range of newbuild construction, conversion, upgrade, modification and repair services. We will continue to improve our infrastructure and capabilities to strengthen our strong track record for win-win-win collaborations - in other words, build mutually-satisfying partnerships between fleet operators, field operators and ourselves."

Mr Richard Matten, Project Manager of MODEC, noted, "We believe that working with established partners helps to ensure that our customers get their FPSO safely, on budget, to required quality level and on time to meet production targets. BrasFELS was our yard of choice for the FPSO Cidade de São Paulo project, and it did a remarkable job! BrasFELS worked very well with our project team to ensure the safe and prompt turnaround of this project.

"Presently, we are working with the yard on another project, FPSO Cidade de Mangaratiba. We are confident that this project too will be delivered to our highest satisfaction."

Scheduled to be delivered in 2014, FPSO Cidade de Mangaratiba will have a production capacity of 150,000 bopd and a storage capacity of 1,600,000 barrels of oil.

In August 2012, the yard secured two contracts from the Petrobras-led consortiums Guara B.V. and Tupi B.V. to fabricate and integrate the topside modules of FPSO P-66 and P-69 respectively.

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