Keppel Completes Pemex Flotel Ahead of Schedule

The Keppel SLP Consortium has completed the onshore construction of two 220-crew accommodation platforms for PEMEX Exploracion y Produccion, a subsidiary of Mexican national oil company Petroleos Mexicanos (PEMEX) ahead of contractual schedule.

Apart from the earlier ex-yard delivery, the Keppel-led Consortium accomplished three significant achievements for PEMEX in the design, engineering, procurement, construction and offshore commissioning of this first Mexican project for Keppel Offshore & Marine Limited (Keppel O&M). They are:

1. The HA-KU-M and HA-KU-S platforms will be the first fully integrated accommodation units in offshore Mexico. The entire living quarters and the machinery decks were built as a single unit at Keppel AmFELS yard instead of two separate modules as was traditionally carried out in Mexico. This construction method reduces the offshore commissioning time, therefore saving considerable time and cost for PEMEX. 2. The design is very well optimized and weight control has been very successful. Each platform has achieved an efficient weight of about 3,300 metric tonnes, which is more than 100 metric tonnes below the contractual weight.

3. The builder of the platforms, Keppel AmFELS, registered sterling safety record of zero loss time, zero incident for the total of one million man-hours in the construction of each platform.

Mr. Chow Yew Yuen, President of Keppel O&M (USA) and head of the Consortium said, "This project reflects the Keppel SLP Consortium's commitment to add value to PEMEX.

"The construction of these two accommodation platforms has provided Keppel a better understanding of the Mexican offshore market and of our customer, PEMEX. I am confident that the experience gained from this project and Keppel's strategic location in the Gulf of Mexico, will give us a good foothold in this very important market."

Mexico is the world's third largest producer of crude oil, and its national oil company, PEMEX, ranks the eighth largest integrated oil company in the world. Oil reserves and production in its shallow water fields have been on the decline for PEMEX in recent years. The company is now actively seeking to work within the country's strict legal framework to engage in more deepwater play.

Mr. Chow added, "The recent scenario in Mexico presents an opportunity for Keppel Offshore & Marine to build up our credentials with PEMEX as a choice solution provider in the design and construction of rigs to meet their needs for more offshore exploration and production."

Platforms HA-KU-M and HA-KU-S were loaded onto their carrier barge from Keppel AmFELS on October 13, 2006 and November 29, 2006 respectively. They are due for the Ku-Maloob-Zaap (KMZ) field in the Bay of Campeche, Gulf of Mexico, for hookup and commissioning, which is expected to be completed by early-2007. Production in the KMZ is on the rise, and PEMEX is focused on increasing its output by around 100% by the end of the decade.

Manuel Diaz Lara, "Residente" (Project Manager) of PEMEX, "Our experience with the Keppel SLP Consortium is very good. They are a very professional and committed team. We are extremely pleased with the quality of the platforms delivered by them. Both units were completed and tested to our satisfaction."

The contract for the two platforms was secured at US$164 million by the Consortium led by Keppel O&M USA in end-2004. Other partners are SLP Engineering Ltd, Gulf Island LLC and Keppel AmFELS Inc. Keppel O&M has a 60% share of the consortium through its wholly-owned subsidiaries, Keppel O&M USA and Keppel AmFELS. Keppel AmFELS has also built a jackup drilling rig, TONALA, a KFELS B class, for Perforadora Central for service with PEMEX, in early-2004.

A wholly-owned subsidiary of Keppel Corporation Limited, Keppel O&M is a leader in offshore rigs, ship repair and conversion and specialized shipbuilding. Its near market, near customer strategy is bolstered by a global network of 17 yards in the Asia Pacific, Gulf of Mexico, Brazil, the Caspian Sea, Middle East and the North Sea regions. Integrating the experience and expertise of its yards worldwide, the group aims to be the provider of choice and partner in solutions for the offshore and marine industry.

Based in the UK, SLP Engineering Ltd is a market leader in selected energy and utilities markets. Its main activities are in accommodation platforms and minimal facilities platforms for offshore oil and gas operations. SLP Engineering has undertaken the EPC contract of the last seven accommodation platforms in Cantarell Field for PEMEX.

Based in Louisiana State, Gulf Island LLC is a worldwide leader in the fabrication of jacket and drilling & production platforms, as well as other specialized structures used in the oil and gas industry.

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