Keppel Secures S$66 Million Worth of Contracts

SMIT Transport & Heavy Lift BV has exercised its option to build an offshore support vessel with Keppel Singmarine Pte Ltd , the specialized shipbuilding arm of Keppel Offshore & Marine Limited (Keppel O&M).

The option is part of the March 2004 contract in which Keppel Singmarine had been awarded to build two 70-tonnes bollard pull Anchor-Handling Tug/Supply (AHTS) vessels for SMIT.

Like the first two vessels, this 120-tonnes bollard pull AHTS is based on Keppel's proprietary ship designs and will be built in accordance with SMIT's requirements.

Delivery is expected in mid 2006.

Said Mr Charles Foo, Chairman of Keppel Singmarine, "The exercise of the option by SMIT is a vote of confidence in our design and their satisfaction with our services."

Meanwhile, Keppel FELS has secured a nine-month project to upgrade and convert Ensco 67 from a slot-rig to cantilever-rig for Ensco Offshore Company (ENSCO).

Together, the total contract value of the two projects is S$66 million.

The contracts secured are 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.