Keppel FELS Brasil secures two FPSO topside contracts worth R$500 million

Keppel Offshore & Marine Ltd (Keppel O&M), through its subsidiary Keppel FELS Brasil, has secured two contracts totalling R$500 million (approx. S$381.4 million) - one from Single Buoy Moorings Inc. (SBM), and another from the joint venture company MODEC and Toyo Offshore Production Systems (MTOPS).


Mr Chow Yew Yuen, President (The Americas) of Keppel O&M, said, "Keppel has worked closely with various international drillers and fleet owners operating in Brazil for some 30 years. Today, in replicating Keppel O&M's proven systems and practices in Brazil, we are able to offer a full range of offshore solutions in construction, conversion, repair and modification, as well as the fabrication and integration of production topsides, among others.

"We are heartened that SBM and MTOPS have reaffirmed our position as the choice solutions partner in Brazil's offshore and marine industry with these contracts to fabricate and integrate modules for their latest FPSOs. As we grow our competencies and track record as the most established shipyard in Latin America, we will continue to nurture win-win relationships with our valued customers. We see the market improving and our yard has the capacity and capability to take on more jobs."

Keppel FELS Brasil's contract with SBM is for the fabrication and installation of topside modules on the Floating Production Storage and Offloading (FPSO) vessel Cidade De Paraty, which was awarded in association with Queiroz Galvão Óleos e Gás S.A. (QGOG) and is currently undergoing conversion at Keppel Shipyard in Singapore.

Mr Chow added, "Like our recent delivery of P-57, this project demonstrates the synergy of the Keppel O&M shipyards in providing a comprehensive suite of services to our customers and brings to bear our near market, near customer strategy."

Work is expected to commence at Keppel FELS Brasil's BrasFELS shipyard in Angra dos Reis, Rio de Janeiro in the first quarter of 2011. The vessel is scheduled to arrive in the first quarter of 2012 with delivery in the fourth quarter of 2012.

The work scope will include the fabrication and installation of six process modules and a riser gantry as well as the installation and integration of another six process modules supplied by SBM.

The FPSO Cidade de Paraty will be deployed in the pre-salt region of the Santos Basin and will have a production capacity of 120,000 barrels of oil per day, and be able to compress 5 million cubic metres of gas per day.

In its contract with MTOPS, a joint venture company between MODEC and Toyo Engineering Corporation, BrasFELS will undertake the module fabrication and integration of the FPSO Cidade de Sao Paulo MV23, which was awarded in association with Schahin Engenharia S.A.

Work is expected to begin at BrasFELS in the first quarter of 2011. The yard's scope includes the fabrication of topsides modules such as riser manifolds, laydown areas and the flare tower, as well as the assembly and integration of fabricated pancakes/skids.

To be completed in the 4Q 2012, the FPSO will be deployed in the pre-salt region of the Santos Basin. The FPSO will have a production capacity of 120,000 barrels of oil per day, and be able to compress 180 million cubic feet of gas per day and store 1,600,000 barrels of oil.

Ongoing at BrasFELS is the upgrading and repairing of Noble's Brazil-based drillships with delivery stretching into 2012.

The abovementioned contracts are not expected to have a material impact on the net tangible assets or earnings per share of Keppel Corporation Limited for the current financial year.