Keppel Almost Ready with Petrobras' Marlim FPU

Keppel Corp. Ltd.

The consortium of Keppel Offshore & Marine Ltd (Keppel O&M) and Technip Engenharia S/A is on track to deliver the P-51 floating production unit (FPU) to Petrobras by November 2008.

This 48,000 tonne FPU is the second such rig that the consortium partners have completed. The first rig, the P-52 FPU, is currently producing in the Roncador field.

President Luiz Inacio Lula da Silva of Brazil and First Lady Marisa Leticia Lula da Silva who was the Lady Sponsor, were at Keppel FELS Brazil's BrasFELS shipyard yesterday to witness the christening. They were joined by some 5,000 Brazilian workers who also celebrated the achievement of the national project.

Like the P-52, the P-51 also realises the country's aspiration to revive its shipbuilding industry and to become a net oil exporter. It will support Petrobras' offshore oil exploration and production activities, contributing significantly towards Brazil's self-sufficiency in oil production. The making of the two rigs has also enabled significant technological and knowledge transfer to Brazil.

With the P-51, Keppel's projects for Petrobras will contribute at production capacity more than 1 million barrels of oil per day (bopd). This represents over 50% of Brazil's present production rate of 1.8 million bopd. In 2010, when it reaches its top operating capacity, the P-51 will account for 8% of Brazil's domestic oil production.

The project also won accolades from Petrobras for excellence in project management and execution through the PRODEP award for two consecutive years in 2006 and 2007.

Choo Chiau Beng, Chairman & Chief Executive Officer of Keppel O&M, said, "Keppel is a long term and serious investor. We are committed to support Brazil in its aims for local contents and to realize its goal as a net oil exporter. We are privileged to play a part in the Brazilian Government and Petrobras's ambition to have the platform P-51 rig built almost entirely in Brazil using Brazilian workers.

"This is part and parcel of Keppel O&M's Near Market, Near Customer Strategy. It is our mission everywhere we set up operations, to lend full support to our customers to reach their goals.

"We are close to completing the P-51, we will continue to service Petrobras in its other projects including the P-56. We hope to build more rig projects for Petrobras here in BrasFELS. We are honoured to be able to help further enhance the close relationship between Singapore and Brazil, as well as that of Keppel with Petrobras."

The P-51 is a FPU that stands 34 storeys high and 10 Olympic swimming pools wide. The platform will be anchored in a water depth of 1,255 meters in the Marlim Sul field, in the Campos Basin in Brazil, and will have the capacity to produce 180,000 bopd with medium API gravity of 28 and 6 million m3/day of gas.

In addition to the P-51, the Keppel/Technip consortium is also building the P-56, which had in September 2008 achieved the completion of the first block and one million manhours without lost time incident. Identical to the P-51, the P-56 will be the third FPU constructed by Keppel FELS Brasil and will help create and sustain employment in Angra dos Reis.

In Brazil's bid to become a net exporter of energy, its national oil company, Petrobras, has a planned investment of more than US $112 billion for 2008-2012 and about 60% of the budget has been allocated for exploration and production. It has also announced plans to build and convert more floating production units such as semisubmersibles and floating production storage and offloading facilities (FPSOs).