Keppel Verolme Wins Contract to Convert Panamax Carrier to Pipelay Vessel

Keppel FELS

Keppel Verolme BV, a member of Keppel Offshore & Marine Ltd of Singapore, has secured new contracts worth around EUR 67 million (S$134 million) in total from Swiss-based Allseas Group S.A. and Sevan Production AS.

Positive market opportunities have resulted in two projects from Allseas Group S.A.

One of the contracts is the conversion of the 2005 Panamax bulk carrier Geeview into a pipelay vessel Audacia capable of operating in ultra-deep water in the range of 3000 meters water depth. New engine rooms, thrusters, additional cranes and accommodations are included in the workscope.

Geeview will arrive at the Keppel Verolme shipyard in early December 2005. The delivery of the completed pipelay vessel is expected in October 2006, after which commissioning will take place.

Another Allseas' vessel Solitaire, the world's largest and most powerful pipelay vessel, has just left Keppel Verolme after two successful visits to the yard this year. During its first visit, new sponsons were installed at the stern of the vessel. A large 600 tons cantilever was fitted out during the recent visit in November. In addition, winches and tensioners were also installed to upgrade the vessel's capabilities.

"We have chosen Keppel Verolme because of the extensive experience and know-how Keppel Verolme has in conversions. The recent successful conversion for Solitaire has demonstrated the strong trust and partnership between the two companies," said Mr. Edward P. Heerema, President and owner of Allseas Group S.A.

"Keppel Verolme is delighted to be selected as Allseas' partner of choice for the conversion and repair of its vessels. We are confident that the projects will be well executed on time, on budget, as we always strive to do for all our valued customers," said Mr. Harold Linssen, Managing Director of Keppel Verolme.

Apart from the Allseas projects, Keppel Verolme has also received a contract from Sevan Production AS to carry out the outfitting of the Sevan Stabilized Platform SSP Piranema.

The SSP Piranema is a Floating Production Storage Offloading (FPSO) vessel with oil storage capacity of 300,000 barrels, an oil processing capacity of 30,000 barrels per day and a gas injection capacity of 3.6 million m³ per day.

"We have awarded the project to Keppel Verolme because of its strong track record with similar works, its strategic location as the regional hub for vessels due for the North Sea, as well as its deepwater infrastructure," said Mr A Smedal, Director of Sevan Production AS.

The contract includes receiving, temporary storing, pre-assembling and installation on the SSP Piranema (SSP 300) hull of process skids, pressure vessels, piping and valves. In addition, there is also the fabrication and installation of steel structures and the hook-up of marine systems such as cranes and offloading station.

The SSP Piranema hull and accommodation block are currently under construction in a yard in China and are expected to arrive at the Keppel Verolme during 1st quarter of 2006. The completed unit is scheduled to reach offshore Brazil in mid-2006.

The contracts are not expected to have any significant impact on the net tangible assets and earnings per share of Keppel Corporation for the financial year ending December 31, 2005.