Keppel Wins Repeat Order for Floatel

Keppel FELS has been awarded a US$206 million contract by returning customer, Floatel International, for a 500-man accommodation semisubmersible.

The new accommodation semi is expected to be delivered end December 2010.

The new accommodation semi, the KFELS SSAU 3600, has been designed to operate in regions outside the North Sea. It is the second contract from Floatel, following the first which was a new generation DSS20NS DP3, designed to suit the harsh conditions of the North Sea, awarded to Keppel FELS in April this year.

"The world's demand for semi submersible accommodation vessels is presently stronger than the current dedicated fleet of 19 units can satisfy. Floatel is positioning itself to leverage this attractive market opportunity with a new fleet of customized vessels suited to various operating conditions," said Mr. Erland Bassoe, Chairman of Floatel International Ltd.

"Keppel FELS has proven to be the most reliable and versatile shipyard. I am confident that they are the right partners to support Floatel in our fleet expansion program," he said.

"Floatel has given us their vote of confidence with the award of a second accommodation rig contract in a span of less than six months. This is a partnership built on trust, and we will see to it that Keppel delivers quality solutions on time and within budget to meet the needs of our valued customers," said Mr. Tong Chong Heong, Managing Director and Chief Operating Officer of Keppel O&M.

Designed by Keppel O&M's Deepwater Technology Group, the six-column unit carries accommodation for 500 persons complete with full recreational facilities. It is cost effective and capable of operating alongside fixed platforms, with a complement of a fully redundant Dynamic Positioning System, a high crane capacity and fire fighting capabilities.

In 2005, Keppel FELS delivered Safe Concordia, an accommodation semi of similar design to similar specifications for 400 persons.

Floating accommodation platforms are needed to provide additional living quarters for drilling and production personnel. Such support is needed during hook-up and commissioning in the development phase, for maintenance and upgrading during the production phase, as well as for decommissioning.

"As more E&P activities move further offshore and into deeper waters, we expect demand for floating accommodation units to be encouraging," said Mr. Tong.

Keppel FELS is a wholly-owned subsidiary of Keppel Corporation, through Keppel O&M, a leader in offshore rigs, ship repair and conversion and specialized shipbuilding. 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.

The contract is not expected to have any material impact on the net tangible assets or earnings per share of Keppel Corporation for the current financial year.