Keppel FELS Brasil clinches US$950 million in FPSO contracts from Petrobras

Singapore, 10 August 2012 - Keppel FELS Brasil S/A has secured two contracts worth a total of about US$950 million from the Petrobras-led consortiums, Guara BV and Tupi BV, for the fabrication and integration of topside modules on the Floating Production Storage and Offloading vessels (FPSO) P-66 and P-69.

As part of the agreement, Petrobras has an option for a similar contract to be exercised by 1Q 2014.

Mr Chow Yew Yuen, Chief Operating Officer of Keppel Offshore & Marine (Keppel O&M), the parent company of Keppel FELS Brasil, said, "We are pleased to be able to support Petrobras in growing their fleet of FPSOs, providing local content to meet their requirements. Undertaking two similar projects will enable us to maximise our efficiencies and add value for our customer. Having delivered a number of FPSO conversions and topside integration projects with another two in progress, we are proud that our BrasFELS shipyard has established a track record of quality deliveries. Our recent firm contracts signed with Sete Brasil for five additional DSSTM 38E drilling semisubmersibles are a testament to the good standing of our BrasFELS shipyard.

"As the most established offshore yard in Latin America, we are continually upgrading our capabilities and have the capacity to take on more projects of different varieties. Our Near Market, Near Customer strategy has enabled us to better serve Petrobras. We look forward to continuing this win-win partnership and contribute to Brazil’s E&P programme."

The FPSOs will have identical work scopes which includes the fabrication and integration of seven topside modules. When completed, P-66 will be deployed to the Guara field while P-69 will work in the Tupi field in offshore Brazil. Both FPSOs will each have a production capacity of 150,000 barrels of oil per day (bopd).

BrasFELS, Keppel FELS Brasil’s shipyard located in Angra dos Reis, Rio De Janeiro, is currently also undertaking the fabrication and integration of topsides for FPSO Cidade De Paraty and FPSO Cidade De Sao Paulo. BrasFELS recently sealed a contract with MTOPS (MODEC and Toyo Offshore Production Systems), for the fabrication and integration of topsides for FPSO Cidade de Mangaratiba.

The above 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.