Keppel Clinches Specialized Ship Contracts Totaling S$350 Million
Keppel Singmarine has secured four contracts worth a total of S$350 million (US$230 million) to build six offshore support vessels (OSV) and a derrick pipelay vessel.
Delivery dates for these vessels are expected between the second half of 2009 and the first half of 2010.
This is the first time that Keppel Singmarine is building a derrick pipelay vessel, and for a new customer, Global Offshore International Ltd (Global Offshore).
Mr. Hoe Eng Hock, Executive Director of Keppel Singmarine, said, "Derrick pipelay vessels are highly specialized ships that have to be tailor-made to owners' requirements.
"We are glad that Global Offshore recognizes Keppel Singmarine's versatility and expertise in building all types of vessels in accordance with owners' specifications."
The 163-meter derrick pipelay vessel is a multi-purpose construction vessel to be equipped with two units of 4500 KW electric propulsion thrusters, six units of positioning thrusters, a 1200-tonne crane and pipelay equipment capable of operating in water depths of 3,000m and handling pipes of 60 inches in diameter. These equipment will be supplied by the owner.
The second contract secured is for another first time customer, Greatship Global Offshore Services Pte Ltd (Greatship), for the construction of two 94-meter, 4,600 dwt, platform supply vessels (PSVs). The PSVs will be equipped with diesel electric propulsion and dynamic positioning systems (DP-2).
The third contract was signed with repeat customer, Hadi H. Al-Hamman Establishment (Hadi), to build two 60-tonne bollard-pull Anchor Handling Tug/Supply (AHTS) vessels with dynamic positioning system (DP-2) for the Middle East. Hadi has placed a total of 16 vessels with Keppel Singmarine since 2001.
The fourth contract is for another repeat customer, LUKOIL-Kaliningradmorneft (LUKOIL), which has commissioned Keppel Singmarine with the building of two Ice-Class multi-purpose standby and rescue vessels for the Caspian Sea. These are the sixth and seventh vessels to be built for LUKOIL.
Mr. Hoe added, "These contracts reflect the success of our strategy of focusing on offering our experience and expertise in the design and construction of sophisticated and customized vessels for the offshore logistic industry, an area where we can add the most value to our customers."
Keppel Singmarine has secured contracts for over 50 OSVs since targeting its business on designing and building specialized vessels in 2002.
Keppel Singmarine, a wholly-owned subsidiary of Keppel Corporation Limited through Keppel O&M, is the specialized shipbuilding arm. Keppel O&M's near market, near customer strategy is bolstered by a global network of 20 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.
Global Offshore International Ltd is a wholly-owned subsidiary of Global Industries Ltd, a company listed in the US. It is a leading provider of offshore construction, engineering and support services for the oil and gas industry with its premium fleet of vessels.
Greatship Global Offshore Services Pte Ltd is wholly-owned by Greatship India Limited (GIL). GIL is a wholly-owned subsidiary of GE Shipping.
Hadi H. Al Hamman Establishment is one of the leading general contracting, trading and marine service providers to the Oil & Gas and Petrochemical Industries in the Middle East with its headquarters in Saudi Arabia.
LUKOIL-Kaliningradmorneft is a subsidiary to LUKOIL Oil Company, a leading Russian oil company with main activities in oil and gas exploration and production, and production and sale of petroleum products.
These contracts are not expected to have material impact on the net tangible assets and earnings per share of Keppel Corporation Ltd for the financial year of 2007.
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