Keppel Wins S$110 Million in New Contracts

Keppel Corporation Limited, through its offshore and marine units under Keppel Offshore & Marine Ltd (Keppel O&M), has clinched several contracts amounting to about S$110 million.

They are for the conversion of a Floating Storage and Offloading (FSO) unit, the construction of four Anchor Handling Tug/Supply (AHTS) vessels, repair of a maintenance vessel, upgrade of a semisubmersible drilling unit and additional work on an offshore platform.

Keppel Shipyard will carry out the conversion of 1988 Aframax tanker M.T. Namsan Spirit to FSO Pattani Spirit for Teekay Shipping Corporation. Upon completion in the second quarter of 2004, FSO Pattani Spirit will be deployed in the Gulf of Thailand with Unocal Thailand.

Keppel Singmarine will also build two 70-tonne bollard pull AHTS for Gulfmark Offshore Inc and another two 65-tonne bollard pull AHTS for Hadi H. Al-Hammam Est (HHE) . The vessels for Gulfmark Offshore and HHE have been scheduled for delivery in the first quarter of 2005 and the last quarter of 2004 respectively.

Said Mr. Goh Boon Kiat, Executive Director for Keppel Singmarine, "We are pleased that both Gulfmark Offshore and Hadi H. Al-Hammam have chosen Keppel Singmarine to build the AHTS vessels for them. We have built a track record of delivering high quality vessels on time and on budget."

Keppel Singmarine has also been awarded a major refit job for RFA Diligence, a maintenance vessel. With a displacement of 10,765 tons, RFA Diligence is the third vessel awarded to Keppel Singmarine by the same owner, after the successful repair and refurbishment of RFA Sir Tristram and RFA Bayleaf in the first half of 2003.

Meanwhile, AMFELS has won a contract to upgrade a semisubmersible drilling unit, Ocean America from Diamond Offshore.

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, 2003.