Keppel FELS Brasil secures US$200 million FPSO topside contract from repeat customer

Keppel Offshore & Marine Ltd (Keppel O&M), through its subsidiary Keppel FELS Brasil, has secured a contract worth approximately US$200 million from MODEC and Toyo Offshore Production Systems Pte Ltd (MTOPS), a joint-venture company established in Singapore by Toyo Engineering Corporation (TOYO) and MODEC, Inc.

The contract is for the fabrication and integration of topside modules for the Floating Production Storage and Offloading vessel (FPSO) Cidade de Mangaratiba MV24 at Keppel FELS Brasil's BrasFELS yard in Angra dos Reis, Rio de Janeiro, Brazil.

Scheduled to be completed by 2Q 2014, the FPSO will have a daily production capacity of 150,000 barrels of oil per day (bopd) and storage of 1,600,000 barrels of oil. It will be chartered to Tupi B.V - a Dutch company owned by PETROBRAS NETHERLANDS B.V. (65%), BG OVERSEAS HOLDING LTD. (25%), and GALP ENERGIA E&P BRASIL B.V. (10%) - for 20 years and deployed at Lula-Iracema South Area in offshore Brazil.

Mr Chow Yew Yuen, Chief Operating Officer of Keppel O&M, said, "We would like to thank our repeat customer MTOPS for reaffirming their confidence in us. This is our second project with them and we are committed to deliver it safely, on time and within budget. The first project, the integration of topside modules for the FPSO Cidade de Sao Paulo is progressing well, and we look forward to support MTOPS as they grow their presence in Brazil.

"Keppel's BrasFELS yard is the most established yard in Brazil and has a proven track record of offering a full range of offshore and marine solutions, including the fabrication and integration of topside modules. We are continuously making improvements to the yard so that we can better serve our customers."

Work is expected to commence at BrasFELS in 4Q 2012. The major work scope includes fabrication of the helideck, flare tower, risers, manifolds, waste heat recovery units, sulphate removal unit, water injection unit and integration.

Mr. Shigero Usami, President of MODEC Singapore said, "We are pleased to award this project to Keppel FELS Brasil as they have demonstrated their strong performance in the integration of the FPSO Cidade de Sao Paulo. We are confident that both vessels will be delivered to our highest satisfaction and be a success when deployed for our customers.

"As a leading FPSO operator, we are ideally positioned to support the growth of Brazil's oil and gas production. In partnering an established shipyard like BrasFELS, we help ensure that our customers get their FPSOs on time to meet their production targets."

The first project between Keppel and MTOPS on the fabrication and integration of topside Modules for the FPSO Cidade de Sao Paulo was contracted in December 2010. Work on the project is progressing on track and expected to be completed by 4Q 2012.

The above contract is 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.