FELS Setal/Technip Consortium to Build P-51 Platform

The consortium of FELS Setal SA and Technip Engenharia S/A (Technip) has received the Notice of Award from Petrobras Netherlands BV (PNBV) to build P-51, a semisubmersible production platform, for US$639 million.

To be completed in 47 months, the P-51 platform will be deployed in state oil company Petrobras' Marlim Sul oil field.

FELS Setal and Technip's share in the project is 75/25 respectively.

FELS Setal's work will be divided into three portions. Detailed engineering and construction of the corner nodes of the lower hull will be carried out by Keppel FELS in Singapore. A part of the lower hull will be subcontracted to the NUCLEP yard. FELS Setal will fabricate the rest of the lower hull, deckbox, topside, accommodation and modules and will also handle the commissioning and pre-operations start-up.

Technip will be responsible for the overall engineering and detailed engineering of the deckbox and offshore mating and transportation.

Mr. Tay Kim Hock, President and Chief Executive Officer of FELS Setal, said, "The P-51 project represents yet another major milestone of localizing significant amount of work in Brazil. This will create more employment and will enhance the capabilities of local companies."

P-51 is a 41,000 ton unit capable of producing 180,000 barrels of oil and 6 million cu m of natural gas a day. It will be installed in 1,255 m of water, 175 km from the coast, and is scheduled to begin production in the first quarter of 2008.

The contract is not expected to have any material impact on the net tangible assets and earnings per share of Keppel Corporation for the financial year ending December 31, 2004.

Sixty percent owned by Keppel Offshore & Marine Limited (Keppel O&M), FELS Setal has the largest and most comprehensive shipyard in the southern hemisphere occupying an area of 440,000 square meters in Angra dos Reis. Its other yard in Niteroi is an established topsides fabricator. It also has fabrication base in Macae that services offshore rigs in the Campos Basin.