First drilling rig for Brazilian waters - Keppel Offshore & Marine

First drilling rig for Brazilian waters

OffshoreGaining a new touchof Class

One extraordinary‘son’ – P-52

MarineSunrise at Keppel

A publication of Keppel Offshore & MarineMICA (P) 239/05/2006July/August 2006

2 OffshoreMarine July/August 2006

Sharing a proud moment onboard 8

A striking month for Keppel Batangas, ENSCO Page 12and GSF

Editorial AdvisorChoo Chiau Beng

EditorLai Ching Chuan

Assistant EditorSarah Seah

Sub EditorLee Yin Chiin

Committee membersMichael Chia, Nelson Yeo, Hoe Eng Hock,Dr Foo Kok Seng, Aziz Merchant,Jaya Kumar, Quek Mong Song, David Loh,Chin Sze Kiun, Cindy Lim

ContributorsAhmad Loqman, Alan I. Claveria, AndersJeger, Andrew Ong, Christopher Barton,Grace Chia, Harold Linssen, Hizam Haiyon,Leow Ban Tat, Lucienne de Jong, Roy Tan

OffshoreMarine is a bi-monthly publication ofKeppel Offshore & Marine Ltd50 Gul Road, Singapore 629351Tel: (65) 6863 7200Fax: (65) 6261 7719/6265 1927

Company registration no. 199900642R

Editorial Board

F E A T U R E S

Delivering quality services in a booming 6rig market

Flying to the rescue 8

Tacking the course in Nantong 10

Keppel Cebu inks new deal 11

Walking the talk for safety 16

Serving up a buffet of solutions for E&P 24in Brazil

Solutions for deepwater 29

Colours of Nationhood 34

Whoa Madness! 36

To Singapore’s 41st, with love from Brazil Page 34

OffshoreMarine July/August 2006 3

Continued on page 4 �K eppel FELS has secured agroundbreaking contract to designand build its first drilling rig for

deployment in Brazilian waters.

The contract from Brazilian drilling contractor,Queiroz Galvão Perfurações (QGP), is to builda semisubmersible (semi) drilling platform,with the owner supplying the drilling andsubsea equipment.

The rig will be built based on a fifth generationdeepwater solution, the DSSTM38.

The semi which will be delivered in the thirdquarter of 2009, is expected to supportPetrobras’ aggressive plan to improve itshydrocarbons production and reserves inBrazil and elsewhere in the region. Thenational oil company of Brazil has justupped its capital expenditure by 66% toUS$87 billion over a five-year period ending2011, with E&P accounting for 56% of theexpenditure.

Tong Chong Heong (CH Tong), MD/COO ofKeppel Offshore & Marine (Keppel O&M),said, “I am glad that QGP finds the DSSTM38rig design a suitable solution for Petrobras afterdue diligence studies. I am confident that thisrig will deliver on its promise, and pave theway for more drilling rig orders from theregion.”

Keppel O&M’s projects operating for Petrobrascomprise floating production units thatproduces around 700,000 bopd for Brazil.The company is currently carrying out threeother projects for Petrobras directly andindirectly, that will add up to another540,000 bopd by mid 2008 (see page 24).

CH Tong commented, “This is the first timeKeppel is building a drilling rig for Brazil. Thenew contract represents a milestone in the

First drilling rig order forBrazilian waters

deepening confidence of Brazilian contractorsand operators in Keppel’s ability to deliverquality products and services on time and onbudget.”

An innovative and highly cost-effective newdesign, the DSSTM38 semi drilling rig has beendeveloped to meet operational requirementsin the deepwater “Golden Triangle” region,comprising Brazil, Africa and the Gulf ofMexico. The region accounts for 85% of theworld’s deepwater E&P expenditure overthe next five years, according to Douglas-Westwood.

The DSSTM38 design isan innovative and highlycost-effective semi design

developed for the deepwaters off Brazil, Africaand the Gulf of Mexico


60-tonne bollard pull Ice-class Anchor Handling Tug/Supply(AHTS) vessels which Keppel Singmarine secured from LUKOILin May 2005 and January 2006. The deliveries of these twovessels are due between end-2006 and mid-2007.

The two new contracts, secured on the back of the AHTS, areturnkey projects. They are for the construction of an auxiliaryicebreaker vessel and a multi-purpose icebreaking supply vessel.

Charles added, “I am glad that LUKOIL is pleased with theservices that we are providing, and I am confident we will beable to deliver these two icebreaking vessels according to theowner’s requirements.”

Contracts for these highly specialised vessels were won amidstcompetition from European yards. They are the first such vesselsto be built by an Asian yard, which is a testament to the growingexpertise of Keppel Singmarine in offering high value-addedservices to its customers.

The vessels will be delivered to their owner between end-2007and mid-2008. To be deployed to the Barents and Arctic Seas,these vessels are designed and will be built to the rules andstandards of the Russian Maritime Register of Shipping, and arecustomised in accordance with the owner’s stringentrequirements and superior technical specifications.

The first of four vessels for LUKOIL was recently launched atthe Keppel Singmarine yard

Commenting on Keppel O&M’s strategyin meeting rising demand for deepwaterrig solutions, CH Tong said, “We expectdeepwater E&P to continue unabated inthis region as major oil companies pushahead with their plans to increase andreplace capacities. Rigs required tosupport such deepwater searches have tobe technically more sophisticated andcost-effective.

“As a shipyard with an in-depthunderstanding of the requirements, wehave developed a series of rig solutions,with the DSSTM38 being one of the latestdesigns created. The feedback receivedfrom the owners, operators and thebuilding experience gained from theconstruction of the DSSTM20, DSSTM21and DSSTM51 semis have gone into the

technology and design of theDSSTM38.”

The DSSTM38 is rated to drill to depths of30,000 feet below mud line in just over9,000 feet water depth. It is 99.5 metresin overall length, with a main deck sizeof 69.5 metres wide by 69.5 metresbreadth. Its maximum operationaldisplacement is approximately 40,000tonnes at a draft of 20.5 metres.

The maximum variable deck load ofthe DSSTM38 is 5,500 tonnes, withaccommodation facilities for up to 130men. It has both vertical and horizontalriser storage. The eight 3000kWAzimuthing thrusters configuration aredesigned to keep the vessel in position.All configurations comply with theAmerican Bureau of Shipping DynamicPositioned System (DPS-2) requirements.

The DSSTM20 rig, Maersk Explorer, iscurrently operating in the Caspian Sea forMaersk Contractors, and its performancehas led the drilling operator to order twomore rigs, the DSSTM21. GlobalSantaFepicked the DSSTM51 rig, presently underconstruction, for their requirements. TheDSSTM21 and DSSTM51 designs haveDynamic Positioning systems.

The DSSTM series of semisubmersible rigsis jointly designed by Keppel O&M’sDeepwater Technology Group (DTG) andMarine Structures Consultants of TheNetherlands.

Queiroz Galvão Perfurações is one of thelargest Brazilian private groups. TheDSSTM38 will be its fourth semi drillingplatform, which will perform a seven-yearcontract for Petrobras.

� Continued from page 3

� Continued from back page

The 100m long auxiliary icebreaker vessel will have equipmentand system capabilities to work in temperatures down to -40oCand to proceed through 1.7m of level ice with 20cm snow cover.

The 81m long multi-purpose icebreaking supply vessel canproceed through landfast ice having an unbroken thickness ofup to 1.5m with 20cm snow cover.


In keeping with its credo to offer unrivaled services withfast turnaround, the Keppel O&M group has enhanced itsfacilities with a new site in Singapore, and is outfitting its

Subic Shipyard in the Philippines to undertake offshore work.

Keppel FELS ramps up Singapore facilities

Keppel FELS has expanded its local facilities with a new site atShipyard Crescent, Jurong. The site is approximately ninehectares and is strategically located between Keppel FELS’Main Yard and Pioneer Yard. Its ideal location will facilitatelogistics and the transfer of blocks by floating cranes betweenyards.

Shipyard Cresent will undertake fabrication work fornewbuilding projects secured by Keppel FELS, as well as themooring and repair of rigs. It will yield an additional throughputof approximately 6,000 – 8,000 tonnes of steel per annum.

Michael Chia, ED of Keppel FELS, said, “We remain committedto deliver our projects on time and on budget. To meet theunprecedented increase in orders, we are ramping up ourcapacity to ensure our delivery targets are met.”

Subic Shipyard shapes up for offshore work

Over in the Philippines, Subic Shipyard is gearing up toundertake the fabrication of steel components for offshore rigs.

Enhancing facilities for offshoredemand

As part of the outfitting, critical offshore systems, machineryand equipment will be installed in the yard. These include CNCprofile cutting machines, panel lines, low-bed transporters andcovered fabrication areas with overhead gantry cranes.

Charles Yap, President of Subic Shipyard, said, “Subic Shipyard’sportfolio of services comprises mainly shiprepair, ship conversionand drydocking. We are very excited as the yard gets into theupswing of expanding our services into the offshore sector.”

Subic Shipyard is expected to increase throughput ofapproximately 6,000 – 8,000 tonnes of steel per annum.

In addition to the installation of new facilities, local employeeswill also be trained for offshore-related construction work.

Charles said, “Re-training is necessary to ensure that ouremployees are equipped with the required skills for offshorework. We need to inculcate in them an offshore mindset, whichis very different from that of the marine sector.”

Subic Shipyard will introduce training programmes whichinclude shopdrawing interpretation, 3D computer-aided designtools, CNC profile cutting and advanced welding skills.

In addition, there will be overseas exchange programmes, underwhich, key engineers and workers from Subic Shipyard areposted to Keppel FELS Singapore for training whilst a team ofKeppel FELS supervisors are sent to the Philippines to supportSubic Shipyard.

Keppel is increasing its global capacity to meet growing demand for offshore work


Delivering quality services in aithin months of the1973 oil crisis, a great‘‘W drilling boom began.

Vast amounts of capital were poured intothe oil and gas industry. However, whenoil price stabilised at US$18 for the next20 years, the industry went into a longdownturn.

Of the five yards in Singapore at that time,namely Far East Levingston Shipbuilding,Bethlehem, Marathon LeTourneau,Robin and Promet (PPL), only Far EastLevingston (now Keppel FELS) survived.PPL became dormant and was revivedonly when Sembcorp Marine purchaseda majority stake a few years ago.

There was a boom for building deepwaterunits from 1996 to 2002, spurred byfactors including the increase indeepwater drilling rates, the need for newgeneration rigs and the need to drilldeeper. But, many projects were poorlyplanned and built in relativelyinexperienced yards, resulting in longdelays and cost overruns. Subsequently,there was a consolidation amongst thedrilling contractors and many well-knownfirms disappeared.

In addition, negative Wall Streetperception of speculative newbuildingshad left many US-listed drillingcompanies reluctant to build rigs for fearthat they couldn’t get long-term charterfor their rigs. It was also during this timethat Keppel partnered our customers tobuild and co-own rigs.

The current persistent high oil price since2003 and ageing drilling rigs gave anopportunity for the visionary Norwegianinvestors to invest in drilling rigs.

Attracted by the boom, severalinexperienced shipyards are entering therig building business. However, we needto realise that the ability to win projectsdoes not necessarily mean the ability to

To execute a rig project successfully, it is crucial for yards to manage the entiresupply chain effectively, CB Choo shared this insight

The offshore rig market is undergoinga boom. Given the cyclical andunpredictable nature of the industry,coupled with the high stakes andstringent requirements involved withthe building of rigs, owners need tochoose the right yard to execute thejobs.

Drawing from his extensiveexperience in steering Keppel’s

offshore business to become theworld’s number one rig builder,Chairman & CEO, Choo Chiau Beng(CB Choo) shared his insights at aseminar on 31 May 2006 by theInstitute of Southeast Asian Studies(ISEAS) on how to pick winners whocan deliver on the promise ofquality products and services.OffshoreMarine reproduces extractsof this speech.


deliver value to stakeholders. In fact, aspreviously experienced, many offshore rigprojects resulted in high cost overrunsand delayed deliveries that led to thebankruptcy of some shipyards. Shipyardscan be very busy but are losing money,such as some Korean yards.

Rig building projects are complex, timesensitive and involve many parties.Successful rig yards must have strongcontractual and good project executioncapabilities. To do that they need goodpeople, experience, relevant facilities anda good understanding of the customer,product and market.

Project Execution

First, we must understand the rigbuildingcontract. Each contract has to be carefullyand thoughtfully negotiated between thebuilder and customer. Work scopes mustalso be clearly defined and the yard mustensure sufficient control over elementsthey are responsible. Pricing must be rightto commensurate for risks. To minimiserisks, cash flow from customers must bemore than the outgoings of the yard.

It is also important that the yard payspecial attention to the termination,liabilities, indemnities and disputeresolutions clauses, as well as the projectspecifications included in the contract.

Rigbuilding is a very complex project. Itis unlike shipbuilding, which is similarto constructing a warehouse, whereasrigbuilding is like putting together aspecialised factory. Hence, for Keppel, inaddition to working closely with ourcustomers, we build the rigs to our owndesigns and install our own criticalcomponents such as the jacking systemsand leg components to ensure effectivecontrol of the projects.

Most of the rig equipment are importedfrom the US, Japan, Korea and Europe. Itis important that the supply chain isproperly managed. In this respect,Singapore is fortunate because we havean excellent logistics infrastructure.

Over the years, Keppel FELS has investedover S$250 million to build up ourabilities to construct jackups andsemisubmersibles effectively andefficiently. We will continue to invest toimprove our facilities and leverage thelatest technologies to optimise theprocesses through engineering andR&D.

People

Every organisation is only as good as thepeople it has. In the rig boom, it is achallenge as the industry is short of goodqualified and experienced people.

Keppel O&M is fortunate that we havebeen building offshore rigs in the last20 years even during the downturn albeitonly one or two rigs in some years. Withthe integration of our yards, constantrecruitment from the Polytechnics andUniversities, as well as scholarshipawards, we have access to a large pool ofexperienced and qualified people. Inaddition, with the Government’senlightened foreign worker policy, wehave also employed Malaysian, Filipino,Indian, Bangladeshi and Chinese workers.

With current order book of someS$10 billion and 17 yards worldwide, wehave to forge a strong team through oureight core values – “Can Do” with Passion’Customer Focus; Committed to Health,Safety and the Environment;Accountability; Integrity; Innovations andLearning; Global Mindset; and Peopleand Teamwork.

Partners

A complex offshore rig requires inputsfrom the entire supply chain. As such,effective management of this chain iscrucial to the project’s success that is todeliver the rig on time, on budget, at areasonable profit and more importantly,keep a happy customer who will keepcoming back to us.

Ultimately we have to create value to ourstakeholders – customers, shareholders,employees and business partners.’’For the full transcript of CB Choo’s speech,please visit http://www.keppelom.com/publications/specialfeature2.asp

One of the key facilities that Keppel hasinvested to build up its rig constructioncapabilities is the floating cranes

booming rig market


Flying to the rescue

ENSCO 107 undergoes fast track repairs at Keppel FELS

ENSCO 107, a KFELS B Class designjackup drilling rig, had punched throughon its Port leg due to the site’s soft soilconditions.

ENSCO International Inc, (ENSCO)requested for Keppel FELS’ help onsite.

Within a few hours, Keppel’s flying squadwas activated to fly into Vietnam.Inspection revealed damages wereconfined to the drill floor, wind walls andelectrical systems.

Fred Glander, Engineering Manager ofENSCO, said, “The repairs were confinedto a small vertical area above and belowthe drill floor. Keppel FELS had

A fter enduring a 19-footpunchthrough, the legs ofENSCO 107 remained

unscathed with minor damages toperipheral structures at the drill floorsurrounds.

Nevertheless, the ENSCO projectteam took no chances. Keppel FELS’flying squad was called in. Repairof the rig was completed aheadof schedule, and in 34 days,ENSCO 107 was back in Vietnamwaters.

On 17 June 2006, while pre-loading on adrilling location offshore Vietnam, the

everything organised and on track soI had all the confidence in KFELS andour rig team to finish the job.”

The rig arrived at Keppel FELS inSingapore 10 days later. The swiftdiagnosis by the flying squad, andadvance preparation by Keppel FELS atthe yard, enabled repairs on ENSCO 107to get underway immediately upon herarrival. Further tests and checks werecarried out to confirm no other damages.

The works were initially meant to becompleted in 41 days. However, with theclose co-operation and determination ofthe ENSCO and Keppel FELS projectteams, the repair works were completedon 30 July 2006, 7 days ahead ofschedule. ENSCO 107 has since returnedto work offshore Vietnam.

A very impressed rig manager Bill Stibbscongratulated the project teams on theaccelerated delivery saying, “I am verypleased with the response and serviceprovided by Keppel. Once the wheelswere set in motion, the action took placevery fast. Keppel has been veryprofessional in handling the emergencyand the co-operation between our teamshas been excellent.”

The ENSCO 107 was designed and builtby Keppel FELS. It was delivered onemonth ahead of contractual schedule, andwithin budget in January 2006. It hadenjoyed a successful six-month stint offthe shores of Thailand and Malaysiabefore its assignment with KoreanNational Oil Company offshore Vietnam.

Keppel FELS is currently building its sisterrig the ENSCO 108 and two ultra-deepwater semisubmersibles the ENSCO8500 and ENSCO 8501.


M oving a jackup rig andinstalling it onsite is a delicateoperation requiring robust

planning and careful procedures.

Offshore Technology Development(OTD), Keppel O&M’s R&D arm andjackup rig designer, has developed criticalequipment, such as the jacking, fixationand monitoring systems, to perfect theoperation.

The equipment allow for the operationto be carried out swiftly and safely. Theyare well received by the industry as oneof Keppel FELS’ valued customers,Premium Drilling, can attest to.

Engineering Manager, Steve Nowak,had returned after Deep Driller 2’s rigmove from Miri, Sarawak to Brunei. DeepDriller 2 is of the KFELS Super B Classjackup rig design and was delivered aheadof schedule to Premium Drilling on27 April 2006. The rig’s move is the thirdsince her delivery.

Impressed with the critical offshoresystems that are installed onboard DeepDriller 2, Steve wrote, “I am very satisfiedwith the excellent performance of KeppelFELS’ jacking, fixation and EnhancedMonitoring System (EMS) onboard DeepDriller 2. Keppel FELS has made verygood progress in perfecting the reliability

Bob Long and the Transoceanteam at Keppel FELS

Throughextensive R&D,

OTD hasdeveloped

critical offshoresystems that

enhance a rig’soperations

K eppel O&M welcomedTransocean President BobLong when he visited

Keppel FELS on 29 June 2006.

CB Choo and CH Tong received himand exchanged views of currentmarket trends and opportunitiesduring a dialogue session.

Following the discussion, they tookhim on a tour of Keppel FELS yardwhere he had a first hand view ofthe repair of Transocean’ssemisubmersible, the Sedco 702.

The President of the world’s largestdrilling company also had theopportunity to witness variousnewbuilding and upgrading projectsin progress, as well as repairs jobssuch as Bohai 4 and ENSCO 107.

Long toursKeppelFELS

Perfecting the jackand efficiency of jackup equipment,which have contributed to our rig’ssmooth moving operations.”

The unique feature of Keppel’s EMS is itsintuitive and graphical human interfacethat extracts real-time data collected fromthe rig’s rack phase differential (RPD) andchord load monitoring devices.

With the data, rig operators can makeinformed decisions and take the necessarycorrection or preventive actions. The EMSsystem also serves as a type of “black box”,which guides post-mortem works after arig installation.

Looking ahead, Dr Foo Kok Seng, GM ofOTD, said, “The EMS will be enhancedwith tools that can help operators bettervisualise the behavior of their rig. It canalso be linked to other modules such asthe leg penetration monitoring andvarious scenario planning tools. This willallow operators to develop betterprocedures to mitigate risks during a rig’sinstallation.”

“I am heartened by Steve’s positivecomments and we will continue ourefforts to be at the forefront of technologyand as a preferred partner in solutions”,Dr Foo added (See page 28 on thesuccessful spudding of DD2).


Newbuilding projects at Keppel Nantong

The keel laying ceremony of Hadi’s firsttwo vessels, H001 and H002, was held on21 July 2006. Senior management and theproject team from Hadi were greeted byfireworks to mark the start of thenewbuilding projects.

T.K. Rajgopal, GM of Hadi H. Al-Hammam Est., the holding company ofHadi, commended, “The fact that the[keel laying] ceremony was organised ina short span of time shows the dedicationof your workforce in Nantong. The “Can

Tacking the course in Nantong

The buoyant offshore industry hasled to a surge in Keppel O&M’sorder books. Keppel Nantong

Shipyard, too, is riding the waves withnew shipbuilding projects.

Current jobs include the construction offour Anchor Handling Tug/Supply(AHTS) vessels for repeat customer, HadiOffshore Pte Ltd (Hadi) and two AHTSvessels for Gulfmark Offshore Inc. Theyard is also building two 45-tonne bollardpull harbour tugs.

Brilliant start to the first two AHTS for Hadi

Do!” spirit of Keppel is also demonstratedin China… We are very confident that thevessels being built here will be of the samehigh standards as those constructed inSingapore.

“This keel-laying is only the beginning ofmany more vessels to be built in KeppelNantong and we pray and wish the verybest of success for the new facility. We areconfident that the relationship betweenHadi and Keppel will continue for yearsto come.”


Equipped with two powerful Niigata6L26HLX marine engines generating acombined force of 4,078 PS that drivesthe two Niigata ZP-31 propulsionsystems, the tugboats are well-adapted tomanoeuver big ships in crowded portsand tow vessels in coastal water. Three83ekW Cummins diesel driven generatorsets provide the auxiliary power.

The 30-metre long and 10.5-metre widetugboats will be able to accommodate 10personnel each. It will be provided withthe latest navigational aids andcommunication equipment. SOLAS-

Keppel Cebu inks new deal

compliant life-saving apparatus and FiFiClass 1 offship fire-fighting and dispersantsystem will also be provided.

Fok Swee Yin, President of Keppel Cebu,shared during the signing ceremony,“Keppel Cebu is proud to build its first50-tonne tugs in the Philippines. With ourdedicated team of engineers andpersonnel, we are confident of carryingout an excellent job and meeting ourclients’ requirements.”

The ISO certified Keppel Cebu yard’sfacilities in Lapu-Lapu City have beenrecently upgraded to take on multipleshipbuilding projects as it ventures intothis buoyant segment of the marineindustry.

Delivery of these two tugs is expected tobe in October 2007 and January 2008respectively.

Maju Maritime is managed by SmitSingapore. Its services include harbourtowage, standby duties, tow out ofoffshore structures, outside port limitship-to-ship transfer, marine support andcoastal towage.

Signing the newbuilding contract are (from left) Tang Tong Hee, Senior VesselManager, Smit Singapore Pte Ltd; Ben Chew, Fok Swee Yin and Toh Ko Lin

Keppel Cebu seals contract to build two 50-tonne ASD tugs for Maju Maritime

K eppel Cebu Shipyard (KeppelCebu) has inked a newcontract to build two harbour

tugs for Maju Maritime Pte Ltd (MajuMaritime) on 21 July 2006, on the backof the keel laying of the yard’s first offshorenewbuild for the foreign market in Maythis year.

“These two orders bring the number oftugboats being built for Maju Maritimeby the Keppel yards in the Philippines tofour, with the other two built in KeppelBatangas Shipyard,” said Ben Chew,General Manager of Maju Maritime.

Toh Ko Lin, Chairman of Keppel Cebuand President of Keppel PhilippinesMarine (KPMI), commented, “Weappreciate the trust and confidence thatMaju Maritime has in Keppel Philippines’shipyards with these new orders.”

The construction of the two new 50-tonnebollard pull Azimuth Stern Drive (ASD)twin-screw tugs will be based on thedesign by Keppel Singmarine’s researchand development arm, MarineTechnology Development (MTD). Thesesteel-hulled tugs will be equipped withfirefighting and oil pollution controlcapabilities.


Red-letter day for GSF

Another significant milestone for KeppelBatangas Shipyard was marked on1 August 2006 as it cut the steel for its

second offshore rig, an ultra-deepwatersemisubmersible drilling platform ofGlobalSantaFe Corporation (GSF).

It was only seven months ago when KeppelBatangas struck the steel for its first rig, asemisubmersible for ENSCO. This project is onsubcontract from Keppel FELS in Singapore.

The wholly-owned marine shipyard of KeppelO&M in Bauan, Batangas in Philippines wonpraises from Jason Montegut, Senior ProjectManager of GSF, who presided over the cuttingof the first steel plate for its new oil rig,Development Driller III.

Present at the ceremony were representativesfrom Keppel Batangas, Keppel FELS, GSF,American Bureau of Shipping and the MaritimeIndustry Authority (MARINA).

“It is a very exciting time for GSF. This is the

August days for Keppel BatangasAugust 2006 was a striking month for Keppel Batangas Shipyard. The yard struck thefirst plate of steel for two semisubmersibles, which marked the beginning of productionfor two very important customers, GlobalSantaFe and ENSCO International.

largest project that we’ve undertaken andwe have the longest contract in our history,”Jason shared his enthusiasm over theproject.

He added, “I spent the few days looking around(Keppel Batangas Shipyard) and I have seen thequality with respect to how everybody feelsabout their work. What we have seen is thatthey take pride in what they do. The work thatwe have seen on the ENSCO rig and others inthe yard, we are very much looking forward tothat in our project.”

“We feel that we are already a family with yourpositive comments,” replied Toh Ko Lin,President of Keppel Philippines Marine, as heacknowledged the presence of the guests andcolleagues.

“We want to assure our customers about ourcommitment. The development of our yardsfacilities to support the project is well underwayincluding the construction of our second panelline shop. We have acquired another NC cuttingmachine, our biggest to-date, and we areincreasing our workforce.”

Jason Montegut andJohn Conlon of GSF

officiating the strike steelceremony


Keppel Batangas is building the portpontoon mid-section of GSF’ssemisubmersible with Subic Shipyard.They are targeting to complete it by April2007. The hull blocks will be transportedto Keppel FELS for assembly with theother parts of the drilling rig inSingapore.

Second milestone for ENSCO

On 16 August 2006, Keppel BatangasShipyard cut the steel for anothersemisubmersible rig for ENSCOInternational.

Their first rig, the ENSCO 8500, like thesecond which is subcontracted fromsister company Keppel FELS, beganconstruction seven months ago in January2006.

Jeff Saile, ENSCO’s Senior Vice President,Larry McRae, Vice President (Operations)of Nexen Petroleum, Chip Rimer, Directorof Operations Services from Noble Energy,Yeo Yue Ngiap, Senior Project Managerof Keppel FELS and Kok Boon Heng, VicePresident of Keppel Batangas were presentat the ceremony. Nexen Petroleum andNoble Energy are customers ofENSCO.

Vying for a slice of the action isSubic Shipyard, which struck

steel for the mid section pontoon ofGSF’s DD III on the wet day of15 August 2006.

The rain, however, did not deter theceremony from pushing ahead.Instead, for Charles Yap, President ofSubic Shipyard, the downpoursignified a volley of blessings to thestart of the building of the “foundationof the rig.”

Subic Shipyard’s small beginning inthe construction of offshore rigs onlyserves to excite Charles and his teamof more and greater offshore work inthe days to come.

Unabashed with his high hope for theshipyard, and sharing it with theemployees, he said, “We hope to playa bigger role in the construction offuture rigs with the vision that we canone day build a complete rig.”

He urged the workers during theceremony, witnessed by ScottDauphinee, Welding Inspector fromGSF, C. Ponnambalam, QualityAssurance representative from KeppelFELS and union representatives to“release and maximise your potentialand to believe that you are capable ofmore than you already done.”

The elated Jeff Saile, proudly assuredtheir customers that they would dotheir personal best in the construction,operation and execution of thesemisubmersible drilling unit, theENSCO 8501.

His confidence is founded in part onthe many successful projectsundertaken with Keppel FELS in thelast decade. ENSCO’s projects withKeppel FELS have always been ontime or ahead of schedule and withinbudget.

In fact, ENSCO 8500 has justcelebrated its one million manhoursworked without loss time incidents.

However, YN Yeo, Keppel FELS’ SPJMfor the ENSCO projects, is not restingon his laurels. A careful man of littlewords, he chose to highlight that thetask of building the ENSCO 8500 andENSCO 8501 rigs is “still ahead of us.”He told the Keppel FELS and KeppelBatangas teams, “Let us not becomplacent. I urge everyone to bevigilant and to keep up ourcommitment to complete the jobs ontime and on budget, and as well as tohigh safety record and qualitystandards.”

Scott Dauphinee and Charles Yap

Subic Shipyard

From left: George Lee (Keppel FELS PJM), Don Weisinger (Noble Energy),Roselle (ABS Philipines rep), Butch Bagley (Nexen Petroleum), Paul Wildberger(ENSCO, GM of Capital Project), Ron Couet (ENSCO, PJM of Capital Project),YN Yeo and Chip Rimer


K eppel FELS and Keppel Shipyardteamed up to successfully upgradeand repair JT Angel, a Friede &

Goldman L-780 MOD II jackup for TransoceanOffshore Drilling Services LLC (Transocean).

Leveraging the expertise of Keppel FELS forspecialist drilling equipment and systems, aswell as the experience of Keppel Shipyard inrepair projects, both companies were able tomaximise resources and add value to the repairs.

Teamwork gives wings to AngelWhile JT Angel conducted its special periodicsurvey in the yard, she received extensiveblasting and painting on the hull, tank and legs.Steel renewal and piping repairs were alsocompleted in the process. In addition, KeppelFELS undertook specialised repairs on the legracks.

The renewal of 300 tonnes of steel within a tightschedule provided a challenge to Keppel thatthey overcame, completing the repairs on timeand on budget.

In a letter to the Keppel project team, SergeMallet, JT Angel’s Project Manager fromTransocean complimented them, “The project,which posed various challenges at differentstages, was completed without any recordableincidents and is a good example of team workbetween Transocean and Keppel.

“We would also like to mention that Keppel’sproject team has set good standards inengineering as well. We appreciate the effortand help extended by Keppel towards the endof the project in preparing the rig for departureand the support provided when the rig was inanchorage.”

The repairs and upgrades were completed inJune 2006 after four months in the yard. Therig left the anchorage on 3 July to resumeoperations in Indonesia.

Keppel has proven itself as a one-stop solutionfor all offshore and marine needs with itsefficient use of resources whether it isnewbuildings, upgrades, repairs or conversions.

In addition to the repair of JT Angel, the KeppelO&M group continues to repair and upgradevarious rigs from valued client Transocean.Keppel AmFELS recently completed the repairproject, Transocean Marianas in March 2006 tothe satisfaction of the customer. Keppel FELSand Keppel Verolme are each in the processof upgrading of a Sedco 700-seriessemisubmersible drilling rig.

JT Angel prepares to unfurlher wings and return to seaafter receiving the Keppelservice


A record number of projects haveseen a high level of activities inKeppel FELS. Led by an

excellent team of project managers,milestones in various production phasesare being achieved on schedule.

The following milestones of striking steel,keel laying and undocking took placeconsecutively within one month.

Strike Steel

GlobalSantaFe’s (GSF) Development DrillerIII, a state-of-the-art ultra-deepwaterdrilling rig, struck steel in Keppel FELS’Pioneer yard on 29 July 2006. This rig isbeing built to the DSSTM51 design jointlydeveloped by Keppel’s DeepwaterTechnology Group and Marine StructureConsultants (MSC).

With a touch of the button, GSF ProjectManager, Bob McKechnie, ignited theplasma-cutting machine in Pioneer yard,signifying the start of the project’sproduction phase. Development Driller IIIis scheduled for delivery in the firstquarter of 2009.

Other projects that struck steel were

Hive of activities at Keppel FELS

is scheduled for undocking in the fourthquarter of 2006.

GULF-5, Gulf Drilling Inc’s (GDI) secondrig to be built in Keppel FELS also laid itskeel on the slipway of Keppel FELS’Pioneer Yard 3.

Undocking and Fleeting

Two KFELS B Class jackup units in theAdmiral Dock were undocked andberthed at the quayside. These projectswere ENSCO’s ENSCO 108 and DeepDrilling Invest’s Deep Driller 5.

Two other rigs, SeaDrill’s West Atlas andSeaDrill 4, which were also in thedrydock, were moved further out towardsthe exit of the dock in a process calledfleeting. Fleeting is a procedure of movingrigs under construction towards the gatesof the drydock.

As the rigs advance in their progress andbecome more completed, they are fleetedto make way for new keels to be laid. Thisrequires extreme precision as the gapbetween the hull and the walls of thedrydock are less than a metre.

Celebrating another milestone in the partnership betweenKeppel and SeaDrill

ENSCO 108 and Deep Driller 5 undocked

SeaDrill Limited’s (SeaDrill) jackup,West Ariel, and Maersk’s second jackupunit.

To be built to the world-renowned KFELSB Class jackup design, West Ariel is one ofthe four B Class units Keppel is buildingfor SeaDrill.

“We are constantly developing innovativebuilding methods by maximisingavailable resources and drawing onfabrication and assembly capacities of thevarious yards to meet the growingdemand for rigs,” said Jay Singam, KeppelFELS Project Manager for West Ariel.

Maersk’s second jackup unit is also oneof four units that Keppel FELS isfabricating for Maersk. Being built to theCJ-50 design, they can operate in waterdepths of up to 350 feet, and drill high-pressure wells down to 30,000 feet.

Keel Laying

Maersk’s first jackup laid its keel on3 August 2006, in Pioneer yard’s AdmiralDock two days after its sister rig strucksteel. Sitting on the keel blocks, progressis well underway for this jackup unit as it


S afety has always been top priority forKeppel O&M in every project. Toencourage workers to put in their best

for safety, each project team works closely withowners to reward “No Loss Time” recordsduring project milestones.

At a safety bonus award ceremony for theconstruction of a semisubmersible at KeppelFELS, Erik Madsen, Site Manager of MaerskContractors (Maersk) noted the safety cultureinherent in Keppel.

He said, “As I have been around in this industryfor a long time, I have seen many yards andworkplaces with safety messages displayed onwalls and posters but little action andcommitment.

“In Keppel FELS, people practise what theypreach. In the last three months, I have seen allworkers in Keppel FELS commit to the higheststandards of safety all the time. The safetyculture is evident in the management, theworkers and the sub-contractors.”

Walking the talk for safety

Project Owner Yard Manhourswithout LTI

Deep Driller 3 Sinvest Keppel FELS 2,000,000

Deep Driller 5 Sinvest Keppel FELS 1,000,000

Semisubmersible Maersk Keppel FELS 500,000

SeaDrill 4 SeaDrill Keppel FELS 1,000,000

ENSCO 8500 ENSCO Keppel FELS 500,000

Maersk Jackup Maersk Keppel FELS 500,000

Sedco 702 Transocean Keppel FELS 500,000

FPSO Polvo Prosafe Keppel Shipyard 1,000,000

When it comes to safety,everyone counts

Here is what various project teams have achieved in the last two months.


Strides and stripes

Six Keppel FELS project teams earned theirstripes for the strides taken in achieving a cleansafety record for their projects.

Together, they clocked in over five (5) millionman-hours without lost time incident, attestingto Keppel FELS’ commitment in maintaininghigh standards in Health, Safety and theEnvironment (HSE) as a lifestyle in the yard.

The project teams of the Maersksemisubmersible DSSTM21 and theMaersk B273 semi (no.1) both achieved500,000 man-hours each with no loss timeincident. In recognition, Maersk Contractorspresented the two Keppel project teams withcheques of $16,000 each.

This culture of safety was also evident whenDeep Drilling Invest Pte Ltd (DDI) gave out twoawards to the Keppel project teams of DeepDriller 3 and Deep Driller 5 for achieving twomillion and one million safe man-hoursrespectively. The teams were each awarded a$10,000 bonus for their vigilance on safety.

Maintaining the grit for safety is theSedco 702 project team working on Transocean’ssemisubmersible. They achieved 500,000worked hours without lost time incident on28 July 2006.

Expressing their appreciation of the workersand subcontractors whose collective effortscontributed to the accomplishment, Transoceanpresented 155 safety awards to the individualworkers on the project teams.

Transocean praised Keppel FELS’ HSEphilosophy of carrying out an “Incident Free –Zero accidents, Zero Loss, no harm to peopleand no damage to the environment.”

In addition, Seadrill 4 also reached a safetymilestone going one million man-hours withoutlost time incident. As a token of appreciationto the project team’s safety efforts, Seadrill gavethe Keppel team a bonus of $10,000.

At the award ceremony for Seadrill 4, CH Tongreiterated Keppel’s commitment to the safetyculture saying, “I think we have reached a pointwhere behavioural change is the differencebetween taking the message casually andmaking every word count. We practise whatwe preach.

“It is through training, orientation, carefulguidance and more importantly, the emphasisplaced on making our workplace safe that willinculcate in our staff a sense of responsibility.Having said so, we are only as good as our lastproject. Therefore, we strive to achieve highsafety standards not only on our first or secondmillion hours but every million, for everyproject.”

Polvo in safe hands

Imagine 1,000 workers criss-crossing eachother in a building as big as the Empire StateBuilding, it is a wonder that they don’t collideinto each other at least once. Not for theFPSO Polvo.

The former MT Apollo, a tanker measuring340.6 metres by 54.56 metres and 28 metres

The Polvo project team showing off their award

Continued on page 18 �


deep, the vessel is being converted by KeppelShipyard into a floating production storageoffloading (FPSO) facility.

The vessel achieved its one million manhourswithout any lost time incident.

Keppel Shipyard and Prosafe’s site teamsworked very closely together to achieve thissafety milestone. Prosafe and Keppel Shipyard’ssenior management congratulated the projectteams involved and presented them with asafety award on 5 August 2006 tocommemorate this event.

Stuart Brown, Prosafe’s construction manager,praised the teamwork involved in achieving thismilestone, saying, “The cooperation betweenProsafe and Keppel starts from the VSCCmeetings in the mornings and safety becomesthe priority for every worker involved in theproject.”

To be completed by year-end, major worksinclude refurbishment, blasting and painting aswell as fabrication and installation of aninternal turret, flare tower, helideck, andaccommodation upgrading.

S. Sugumaran, Keppel Shipyard’s Senior ProjectManager, credited the safety record as “the totalcommitment of the foremen, supervisors andsubcontractors on board the project.”

STEPS to zero accidents

Think, Observe, Identify, Control and Act. Theseare five easy Self Task Evaluation Process (STEP)steps to zero accidents.

During this year’s (HSE) campaign, employeesof Keppel FELS were reminded that hazardspresent in a particular activity should flaggedout for mitigation if not elimination, beforework even begins.

Launched in 2003, STEP is a simple andsystematic method for employees to evaluatetheir performance before and after work. Itaccounts for many of the safety awards thatKeppel FELS has achieved in the last few years.

During the month-long campaign which beganon 7 July, employees participated in activitiessuch as the safety photo hunt quiz, safety slogancompetition, safety drawing competition andsection exhibit competition. These activitiesengaged employees and helped them becomemore familiar with the STEP.

Recognising the people behind the campaign,Michael Chia, ED of Keppel FELS said at theclosing ceremony, “Fu Wei Wen, Chairman ofthe HSE committee and his team has puttogether many activities to achieve the objectiveof inculcating the importance of risk assessmentand safety in all of us. Let us continue to beproactive in working towards our goal ofachieving zero accidents, and towards ourmission of providing a safe workplace foreveryone.”

� Continued from page 17

The safety messagewas translated into

6 different languagesto ensure that the

workers of variousnationalitiesunderstand


K eppel O&M is preparing for itsfirst Group Safety Symposium todevelop a set of Best Practices

for HSE.

These golden rules for Safety will set anew benchmark and guidelines thatgovern workplace safety in Keppel O&M’syards around the world.

In preparation for the symposium, atwo-day Safety Workshop was organisedon 17-18 August 2006 and attended by19 key representatives from the Group’slocal and overseas yards.

More than just an invaluable platform forthe exchange of experience and know-how by individual yards, it will provide afertile breeding ground for moresynergistic development of safetyinitiatives and programs.

CH Tong expressed his support, “I amvery happy that our people are taking thelead to enhance our benchmarks in HSE(Health, Safety and Environment) efforts.We need everyone to take individualownership towards safety. Together, wecan make our yards safer so that everydirect and subcontract worker can returnhome safely.”

At the safety workshop, decisionsregarding the structure and alignment ofthe symposium and key challenges tosafety were established. Discussionsdelved mainly into best practices, keysuccess factors and recommendations.Arising out of which, six safety focus areaswere identified as being critical. Theyinclude Leadership and ManagementCommitment, Risk Assessment, SafetyInduction, Confined Space safety, Permit-to-Work, and Major Lifting Operations.Six workgroups are now hard at workcollating relevant information andstreamlining processes for sharing at theupcoming symposium.

One of the HSE Champions, Abu Bakarfrom Keppel Shipyard, was pleased withthe workshop, “Let this be a starting pointfor all of us. Especially with the networkand bonding established, I have greatconfidence that it will facilitate andenhance more sharing and alignment ofsafety initiatives and programs withinKeppel O&M.”

Indeed, the workshop was a goodopportunity for representatives of theglobally dispersed yards to conveneas a unified Keppel O&M family.

Gilbert Elizondo, VP of HumanResources, Keppel AmFELS, expressedthis aptly, “The mutual support andcooperation shown at this workshopdemonstrates the shared commitmentwithin the family of yards to improvesafety standards, and has also laidsubstantial groundwork in ensuring asuccessful symposium to be lookedforward to in early-2007.”

Safety is golden

Championing higher HSE benchmarks at Keppel O&M’s global yards

The symposium was initiated ground-upby the HSE department, but the successof the symposium will rest on keenparticipation and ownership of the projectfrom everyone.

LH Chan, GM of Arab Heavy Industries,said it best, “Safety is a responsibility forevery member of the Keppel O&M family– from every yard to every departmentand right down to every individual. Theultimate aim, which is to establish a setof Keppel O&M Best Practices, must drawfrom the vast experience of our worldwideoperational units.

“Valuable inputs from our worldwideHSE departments and operational staffwill make these Best Practices part ofour Keppel O&M core values forsuperior HSE management. With thesupport of management and eachmember of the Keppel O&M businessunits, we are confident that this willmake us the industry leader in HSEManagement.”


K eppel Cebu Shipyard has launched anapprenticeship programme for varioustrade skills recently.

Accredited by the Technical Education andSkills Development Authority (TESDA), thisapprenticeship programme is made available toyouths living in the community.

This programme is not new to Keppel’sshipyards in the Philippines. Keppel Cebu’ssister yard, Subic Shipyard has had suchapprenticeship programme for welders andshipfitters since 1999.

Another sister yard, Keppel Batangas startedoffering apprenticeship opportunities for schoolleavers of Bauan, Batangas, and other nearbymunicipalities in 2004. The program is run byKeppel Batangas Training Centre.

The aim of such programmes is to cultivatecompetencies and teach new technical skills totrainees in areas such as welding, ship fitting,scaffolding, shop drawing interpretation, safetyand other yard-related work.

Toh Ko Lin, President of Keppel Philippines Marine,Inc (KPMI), the listed company for the threeshipyards in the Philippines shared, “Keppel willcontinue this tradition of being a partner forprogress in the community by creating and fosteringa sustainable community of young people who willbe productive members of society.”

Youths who have passed the trade tests are providedpractical on-the-job training in the respectiveshipyards and opportunities to apply theirnewfound knowledge and trade skills in shiprepairactivities.

Outstanding trainees get a chance to work overseasin Singapore at various Keppel yards. They willreceive further specialised training on rig andshipbuilding.

Established in the Philippines in 1975, KPMI has along tradition of being a seedbed for many of theindustry’s marine engineers and skilled workers.The company has over the years offeredscholarships, internships and short trainingprograms for undergraduates and school leavers.The Apprenticeship Programme is one of its latestprogrammes to meet growing demand for shipcareand offshore services as well as encourage the youthto be industrious members of society.

Seeding the future

The Apprenticeship Programme providespractical on-the-job training and hands-onopportunities to apply newfound knowledgeand trade skills in shipyard activities

Out-of-school youthsacquire new trade skillsat the Keppel BatangasTraining Centre


A s the market for offshore drilling rigsand floating production unitscontinues to soar, Keppel O&M is

meeting the demand with the help of a nextgeneration software solution.

The group has invested in Intergraph’s nextgeneration IntelliShip software which is a data-centric solution for streamlining shipbuildingdesign processes and work to preserve existingdata, making it more usable.

Its offshore subsidiary, Keppel FELS, has beenusing Intergraph’s Plant Design System (PDS),SmartPlant Review (SPR), Support Modellerand INtools (instrumentation design tool) forthe engineering design of the P-51 and P-52projects.

The P-52 and P-51 are floating oil-processingsemisubmersibles destined for offshore Brazil.With a displacement of 81,000 tonnes, eachunit is capable of producing 180,000 barrels ofoil daily.

Aziz Merchant, Keppel O&M’s General Managerfor Engineering said, “We started talking toIntergraph towards the end of 2003 about usingPDS to deliver the P-51 and P-52 projects. Atthe time, this software was new to us. Theyprovided us training which helped our teamunderstand the tools and their usage.”

“The PDS improves our skills and productivityby reducing the manhours required for designprojects. The user interface and the graphicscapabilities are also good,” Aziz said. “Thesoftware, SmartPlant Review, enables us toreview the data while we are doing themodeling. This is a great advantage for us.”

Keppel strides ahead with3D technology

The engineering department has completed the trialof IntelliShip, and is planning to use IntelliShip aswell as other Intergraph solutions including PDS,SmartPlant P&ID, SmartPlant Instrumentation,SmartPlant Electrical, SmartPlant Review andSupport Modeller.

These software solutions are designed to provideshipbuilders with better decision supportcapabilities to facilitate global design, productionand life cycle optimisation which ultimately makesthe shipyard more competitive.

“Now that we have committed to IntelliShip we hopeto be using the software as our 3D solution inKeppel O&M by 2007/2008,” Aziz added.

Engineering the next generation offshore rigs with the latest technology


The team from the Keppel-led consortium and Petrobras that made the birth of the “extraord

to say that shipyards in Brazil did not havethe right conditions to build platforms.And I am here looking at oneextraordinary unit.” He was referring tothe P-52, which will be the world’s thirdlargest FPU when completed.

From conception to construction, manydoubted the viability of the P-52 andP-51. Most of the issues were related tomatching the needs of the economy of Rioand the economics of the two megaprojects.

Back in 2003, Lula da Silva, who was thencampaigning for Presidency, madebuilding the two projects worth nearlyUS$1.5 billion, largely in-country as themain platform for generating employmentand to stimulate the economy for Rio.

T he gargantuan P-52 floatingproduction unit (FPU) received‘presidential praise’ for a job well

done even as it is almost being completed.

His Excellency, Luiz Inácio Lula da Silva,President of Brazil, visited BrasFELSShipyard, a subsidiary of Keppel FELSBrasil, on 3 August 2006 to bring himselfup to speed with the progress of his “son”.

He said, “It’s like watching a son grow.When I meet my wife later today, I amgoing to tell Marisa that I have spent mywhole day watching BrasFELS getting thework done for the P-51 and P-52platforms.”

The President was accompanied byPetrobras President, José Sergio Gabrielli,CH Tong and President of BrazilianEconomic and Social Development Bank(BNDES), Demian Fiocca.

Beaming with ‘parental pride’, thePresident added, “Everything here is aresult of a national controversy. They used

One extraordinary ‘son’

A hug from His Excellency Lula Da Silva to Keppel O&M MD/COO Tong ChongHeong (right) as Keppel FELS Brasil President/CEO Tay Kim Hock (second fromleft) and BrasFELS President Gilberto Israel (left) looks on


On the other hand, the need was pressingto get both projects quickly underway toaddress Brazil’s depleting energyproduction and reserves. Brazil’s offshoreand marine building industry was justrejuvenated, and foreign expertise wasneeded.

While Petrobras, the Brazilian national oilcompany, was working through the toughissues with the government, including taxon imported equipment and domesticcontent requirements, Keppel O&M andTechnip Offshore structured an innovativearrangement that allowed the partners tobid successfully for both jobs. Theiringenious bids stunned the market, butled Petrobras to review its original tenderrules which prevented both contractsgoing to the same consortium.

The President amidst excited shipyard workers of BrasFELS

Happily, a compromise was reachedbetween the government and Petrobras.In December 2003, Petrobras awarded theKeppel/Technip consortium the 81,000-tonne P-52 project. Then in May 2004,the P-51 FPU was also awarded to thesame consortium. President Lula presidedover the contract signing for bothprojects.

However, the award of the P-51 projectprompted industry veterans to wonder ifthe Keppel/Technip partners were bitingoff more than they could chew.

But with the Brazilian government fullysupportive, all the stakeholders weredeeply committed to the success of theprojects. The Petrobras and Keppel/Technip teams quickly got down toputting in place new and innovativemanagement, logistics, administrative andoperational systems. These were createdto ensure that there were transparent andtimely communication as well as rapid

flow-through of concerns and issues tosenior management on both sides.

The government’s objective was alsofulfilled. José Sergio proudly reported toPresident Lula that the P-52 projectcreated more than 4,300 direct jobs andapproximately 13,000 indirect jobs.For P-51, there are 4,800 directand approximately 14,400 indirectemployments.

Onboard the near-complete platform, thejubilant President hugged the shipyardworkers and promised that he willreturn to BrasFELS yard yet again – forthe christening ceremony of his“extraordinary son”, to celebrate thecompletion of the P-52 floatingproduction platform.

dinary son” possible


P-52 FPU

Semisubmersible newbuildingClient : PetrobrasLength : 125 mBreadth : 110 mHeight : 101 mDisplacement : 80,000 tonnesMooring Lines : 16Oil Production Capacity: 180,000 bopdGas Compression Capacity: 9,300,000 Sm3/dWater Injection Capacity: 48,000 m3/dClassification : DNVField : Roncador Field, BrazilWater Depth : 1,800 m

Keppel FELS Brasil has successfully achieved the criticalmilestone in the 81,000-tonne P-52 floating productionsemisubmersible unit (FPU) when it completed the delicate andcomplex marine mating operations in early July. This is atestament of the good teamwork and impressive engineeringproficiency.

The project is now 91% completed overall, and the projectmanagement team will push on for the hook-up and integrationphase, with the same commitment and zeal for the mechanicalcompletion by end of 2006. First oil is expected in early 2007.

P-51 FPU

Semisubmersible newbuildingClient : PetrobrasLength : 116 mBreadth : 110 mHeight : 101 mDisplacement : 80,000 tonnesMooring Lines : 16Oil Production Capacity: 180,000 bopdGas Compression Capacity: 6,000,000 Sm3/dWater Injection Capacity: 45,000 m3/dClassification : DNVField : Marlim Sul Field, BrazilWater Depth : 1,225 m

The 81,000-tonne P-51 FPU, which is being built by KeppelFELS Brasil, is now at 63% completion. Her construction is inlike manner as the P-52 FPU.

The P-51 pontoon blocks and nodes forming two huge “C”-shapewill be launched around the third quarter of 2006. The joiningof the two “C”-shape halves of the pontoon will followimmediately.

The four column blocks currently under construction, eachweighing about 1,500 tonnes will then be lifted and positioned


P-53 (Ex-Settebello) FPU

Conversion from tanker to an FPULength : 346.24 mBreadth : 57.36 mDepth : 28.5 mGRT : 152,374DWT : 322,446Mooring System : Internal Turret SystemOil Production Capacity: 180,000 bopdGas Compression Capacity: 6,000,000 Sm3/dWater Injection Capacity: 39,000 m3/dClassification : BVField : Marlim Leste, Brazil

The P-53 floating production storage offloading (FPSO) facilityis nearly 70% completed, and is expected to be on time fordelivery towards the end of the year.

Work completed includes the lifting and installation of themoonpool structure, the assembly of helideck panel andinstallation of the helideck support structure, installation of theaccommodation cabins, machining of upper bogie support andthe upper turret and the installation of lower bogie support.

The vessel is expected to be drydocked in September for TurretInstallation work. With 75 risers and a circumference of25 metres, the P-53 turret is the largest in the world.

Serving up a buffet of solutionsfor exploration and production

in BrazilProviding a wide spread of effective solutions to customers is the driving

desire behind every Keppel O&M project team. With the group’s“near market, near customer” presence in different parts of the world,

Keppel O&M optimises its group resources to give value-added services toits customers. This article chronicles work-in-progress for various customerswho are building offshore structures for deployment in Brazil. The end user

is Petrobras, the national oil company of Brazil.


to the joined pontoon to form the gigantic lower hull structureweighing 17,000 tonnes and measuring 85 metre by 85 metresand 44 metres in height.

Concurrently, the construction of the deckbox is in progress andwill be ready to be skidded over onto a floating barge in thedrydock. Once the deckbox is floated out on the barge, theinstallations of all the process modules will commence.

The mating of the deckbox and spiderdeck with the lower hullis scheduled for early 2007.

P-52

26 OffshoreMarine July/August 200626 OffshoreMarine July/August 2006

FPSO Polvo (M.T. Apollo)

Conversion from tanker to an FPUClient : Prosafe ProductionLength : 340.6 mBreadth : 54.56 mDepth : 28.0 mGRT : 138, 787DWT : 257, 882Classification : ABSMooring System : Internal Turret SystemOil Production Capacity: 90,000 bopdField : Polvo Field, Brazil

The work scope for this tanker includes the fabrication andinstallation of the internal turret, flare tower and helideck;integration of production skids, boilers and turbo alternatorsand renewal of bottom plates, as well as internal tank blastingand painting.

Upon delivery in end 2006, the facility will be deployed in PolvoField off Brazil for Devon Energy.

DSSTM38 drilling rig

SemisubmersibleClient : Queiroz Galvão PerfuraçõesLength : 99.5 metresBreadth : 69.5 metresDraft : 20.5 metresMain Deck : 69.5 metresDrilling depth : 30,000 feetWater depth : 9,000 feetOperational displacement: 40,000 tonnesVariable deck load: 5,500 tonnesAccommodation : 130 menClass : American Bureau of ShippingDynamic Positioned System (DPS-2) requirements

The latest project that Keppel O&M is undertaking for Brazilianwaters is the design and construction of a drilling rig forBrazilian drilling contractor Queiroz Galvão Perfurações (QGP)(see page 3).

A fifth generation deepwater solution, the DSSTM38semisubmersible drilling platform will be delivered in thirdquarter 2009 to support Petrobras’ exploration and productionprogramme.

SSP Piranema

Meanwhile, Keppel Verolme is pushing rapidly withconstruction of the riser deck and the integration of the25,000-tonne SSP Piranema’s topside for Sevan Production, tothe great satisfaction of the Sevan and the Petrobras project team.

To be delivered in January 2007, SSP Piranema is on charter toPetrobras off the coast of Sergipe, offshore Brazil. It has aproduction capacity of 20,000 barrels of oil and a storage capacityof 30,000 barrels.

CALM Buoys

Keppel FELS Brasil S.A. was awarded by SBM Inc. theconstruction of two Catenary Anchor Leg Mooring (CALM)Buoys.

The two CALM Buoys will be installed offshore in the CamposBasin, Brazil by third quarter 2007. They will form part of thePRA-1, an Autonomous Re-pumping Platform Complex, whichcomprises of a Pumping Station Platform and a Floating Storageand Offloading (FSO) unit.

The PRA-1 Platform and FSO will receive crude oil from theFloating Production Units (FPU), P-51, P-52, P-53 and later theFPU P-55.

The PRA-1 Complex will re-pump the crude oil through thesetwo CALM Buoys to export shutter tankers. The CALM Buoyswill provide mooring and loading to shutter tankers of up to asize of 322,000 deadweight tonnage. The average export ratethe CALM Terminals can handle will be up to 650,000 barrelsper day.

� Continued from page 25 P-53


FPSO

BRA

SIL

(200

2)

Client: SBMOil production: 90,000 bopd


Milestones of completed projects for Brazil

Client: Single Buoy Mooring (SBM)Oil production: 100,000 bopd

FPSO

CA

PIX

ABA

(20

06)

FPSO

P-4

8 (

2004

)

Client: Halliburton ProdutosOil production: 150,000 bopd

FPSO

MA

RLI

M S

UL

(200

4)


P-2

7 (

1998

)

Client: PetrobrasOil production: 50,000 bopd

P-1

8 (

1994

)

Client: PetrobrasOil production: 100,000 bopd

Yvan B

are

tto (2

003)

Client: Delba MartimaAnchor Handling Tug/Supply Vessel

ESPA

DA

RTE

FPSO

(20

00)


K eppel Shipyard has successfullycompleted the dockingand repair of membrane

Liquefied Natural Gas (LNG) vessel,S K Sunrise.

The Mark III membrane LNG carrier, witha capacity of 138,000m3, arrived atKeppel Shipyard (Benoi) for its firstintermediate survey docking in August2006.

Major works for this 2003-built vesselinclude overhauling of its cargo pumps,main propulsion system as well as itscargo and cryogenic equipment.

Sunrise at Keppel

Keppel Shipyard became an authorisedmembrane LNG carrier repairer for GazTransport & Technigaz (GTT). GTT is amembrane containment system designer.

Through a Technical Service Agreement(TSA), Keppel Shipyard can tap onGTT’s expertise in the design andmaintenance of the membranecontainment system. Keppel Shipyard’s

S K Sunrise departedKeppel Shipyard on18 August 2006 toresume operations

D eep Driller 2, the first KFELSSuper B Class jackup rig,spudded successfully on its

maiden assignment for Brunei ShellPetroleum Company in offshore BruneiDarussalam. Spudding marks the start ofthe drilling of an oil well where the firsthole is bored into the seabed.

Premium Drilling, a drilling contractorand rig operator, called for Keppel FELS’involvement and assistance upon arriving.Keppel FELS responded promptlyfacilitating Deep Driller 2’s timely start-up.

Appreciative of Keppel FELS’ dedicationand quick action in responding toPremium Drilling’s queries, Sachin Mehra,Director (Projects) of Premium Drillingthanked the Keppel FELS team.

Hailed as a technological milestone, Deep

Deep Driller 2 makesfirst impressions

Driller 2 affirms the KFELS Super B designas one of the most capable drilling rigs inthe world. Developed to withstand highpressure and high temperature conditionsduring operations, this drilling rig iscapable of operating in water depths of350 ft and drilling down to 35,000 ft. Oneof its key features is the ability to allowcantilever skid-off to the wellheadplatform.

John Campbell, Site Manager of DeepDrilling Invest (DDI), said, “This rig brokenew grounds for Keppel by being the firstSuper B rig to be built. Deep Driller 2 isan extremely amazing accomplishment asthe rig was not only delivered ahead ofschedule, it also achieved over two millionmanhours without any loss-time incident.

“Deep Driller 2 is a shining example ofwhat good communication, hard work,

dedicated people, excellent organisationand cooperation between partners canachieve. Everyone involved in this projectshould be very proud of what they haveaccomplished in a very tight schedule. Itis a job well done by all of you!”

Deep Driller 2 was completed anddelivered to Sinvest ASA ahead ofschedule in April this year.

Deep Driller 2 is capable of operatingin water depths of 350 ft and drillingdown to 35,000 ft

specialised LNG Project Team ishighly trained on membrane repairprocedures, safety of the containmentsystem as well as welding of themembrane.

This type of LNG carriers makes use ofspecial technologies such as gas-tightmembranes of thickness between 0.7 mmto 1.2 mm, and insulation layers.


A s an evolution of theconventional TLP design,FloaTEC LLC, developed the

ETlp® (Extended Tension Leg Platform).The ETLP is designed to enhance featuresof the conventional TLP with particularfocus on the following:

• Wider tendon base for greater pitchstiffness (stability)

• Smaller spacing of deck supports formore efficient structure

• Lower rotational inertia for hull anddeck to lower pitch and roll naturalperiod

• Large moonpool to accommodateconventional top tension risers

Advantages of the ETlp®

The ETlp® column spacing is independentof the tendon spacing, thus reducing deckstructure and steel weight. In addition,de-coupling of the tendon porchseparation distance from the topsidesoffers maximum design flexibility.

Other features and advantages of theETlp® design include:• Optimum column spacing for deck

support, thus improving hull weightefficiency

• Reduced wave and current loading,resulting in improved tendonresponses

• Lower tendon forces which reduces theeffect on the hull steel

• Conventional tensioners can be usedfor production and drilling risers

• No high-risk elements needed, such as

riser guides, buoyancy cans and keeljoints

• Availability of 3- or 4-column layout,therefore maximising design flexibility

• Reduced risk from an unconditionallystable hull

One of the main benefits unique to ETlp®

technology is the significant steel weightsavings in deck and hull steel. The designalso allows for flexibility in construction,quayside integration and commissioning,and optimisation of the drillingconfiguration. Due to the need for fewertendons compared to the conventionalTLPs, the mooring system is alsosimplified.

ETLPs have been successfully designed,fabricated, and installed at the Kizomba Aand B locations offshore Angola and theMagnolia location in the Gulf of Mexico.

The Extended Tension-Leg platform design is a proven concept, with units that have been successfully designed, fabricated,and installed at the Kizomba A (left) and B locations offshore Angola and the Magnolia (right) location in the Gulf of Mexico

Solutions for deepwaterIn the May/June edition of OffshoreMarine, we introduced one of the designs in theSemiTECTM suite of products, the DeepDraftTM Semi technology. In this issue,OffshoreMarine features the Extended Tension Leg Platform (ETlp®) technology, one ofthe designs in FloaTEC LLC’s TlpTECTM suite of products.


12 years by the Black Sea

A t the stroke of midnight on 7 July2006, Keppel FELS Baltech, awholly-owned subsidiary of

Keppel O&M, celebrated its 12thbirthday.

Lyudmil Stoev, General Manager ofKeppel FELS Baltech, expressedsatisfaction with results achieved by allstaff and proposed a toast towards aprosperous future for the company.

The auspicious occasion was held at apopular restaurant called Nikova Kyshtaor Nikova’s House, which boasted abeautiful view of the Varna Seacoast.Amidst the conducive setting and greatcompany, the team bonded over food, funand friendly games, especially for the 29new employees who have just joined thecompany last year.

Established in 1994 as the firstengineering outsource centre, KeppelFELS Baltech started out as the firstEuropean subsidiary of Keppel O&M,serving primarily the needs of KeppelFELS. It aims to be a first-class designoffice and preferred supplier of

Cultivating engineers

engineering services in the offshore andmarine industry.

Today, Keppel FELS Baltech is thepreferred partner of reputable shipyardsall over the world, specialising in the basicdesign and detailed engineering ofoffshore drilling units, production storageunits, merchant ships, heavy lift floatingcranes, tugs and specialised vessels,technical consultancy, and finite elementanalysis.

Engineering outfit in China

Keppel FELS Engineering ShenzhenCompany was inaugurated on 3 July 2006by Keppel FELS’ ED, Michael Chia. Theengineering company in Shenzhen is nowa wholly-owned registered company ofKeppel FELS.

Over the years, the Company has grownfrom strength to strength, from a mere 20headcount to its current 133-strong staff.The engineering office is actively involvedin the engineering design and draftingof rigs through computer-aided 3Dmodeling tools.

In his speech at the inaugurationceremony, Michael highlighted theimportance of the China office wheremore than 30% of Keppel FELS’engineering work is undertaken. He alsoemphasised development of humanresources to provide effective design andengineering support to the Singaporeoffice.

Friendly match

Keppel FELS Engineering Shenzhen wonits guest team, Schlumberger, 5-3 in afriendly soccer match on 4 June 2006.

Led by team captain Zhong Liang Sheng,the Keppel FELS team executed a brilliantstrategy by strengthening their mid-fielddefence to oust their opponents.

Star player, Li Chao Chun, an engineerfrom piping section, struck deep into theheart of the opponent by scoring two outof the five goals.

This win aptly led up to celebrations forKeppel FELS Engineering Shenzhen at itsopening ceremony.

Keppel Baltech celebrates its 12th birthday at the beautifulseacoast restaurant in Varna

Room for growth – Keppel FELS Engineering Shenzhen isincreasing its staff strength to 200


Minister George Yeo(wearing cap) atKeppel Kazakhstan

Mr Rahul Gandhionboard a KFELS BClass jackup rig

Minister GanKim Yong (right) atthe deck FPSOFalcon

K eppel Kazakhstan played host toSingapore’s Minister for ForeignAffairs, George Yeo, on 4 June

2006 at its offshore facility in Aktau,Kazakhstan.

Accompanied by CB Choo and KeppelKazakhstan’s President Yick Ping Wong,Minister Yeo was given an overview of theyard’s operations as well as the businessopportunities in the Caspian Sea region.

Minister Yeo also had the opportunity totour the yard where fabrication works onthe pipe racks and four barges forAgip Kazakhstan North CaspianOperating Company N.V. (Agip KCO)are underway.

In Singapore, Rahul Gandhi, Member ofParliament of India, and his entouragecalled at Keppel FELS on 7 June 2006. Metby CB Choo and the management team ofKeppel O&M, Mr Gandhi was introducedto Keppel’s offshore and marine business.Both parties also exchanged views ondoing business in India.

Mr Gandhi also toured Keppel FELS yardand a KFELS B Class jackup rig underconstruction. Keppel FELS is presentlyconstructing four similar rigs for Indianowners.

On a separate occasion, Mr Gan Kim Yong,Minister of State for Manpower andEducation called on Keppel Shipyard(Tuas) during a meeting organised by theAssociation of Singapore Marine Industries(ASMI).

During the visit on 31 July 2006, Mr Ganwent onboard a Floating Production,Storage and Offloading (FPSO) vessel,FPSO Falcon, to gain an insight of FPSOconversion, an area in which Singapore isa world leader. Keppel Shipyard is aspecialist in the conversion of FPSOs.

Forging ties


G etting acquainted with the usage ofmobility aids and safe transfertechniques are skills that come in

handy in their work with senior citizens.

At least, this was what volunteers from theKeppelite Recreation Club (KRC) found outrecently.

Aiding the twilight yearsConducted by the Social Service TrainingInstitute (SSTI) on 24 May 2006, the coursewas entitled “Understanding and working withsenior citizens”. Held at Keppel FELS,participants were taught the proper way ofmoving the elderly around on wheelchairs andlearned the myths and truths about ageing.They also gained knowledge on how tocommunicate with the elderly as well as howto deal with several common geriatric illnesses.

Communications Supervisor of Keppel FELSChristine Desker was a volunteer who tookhome many valuable lessons from the session.

She said, “The course was helpful as it taughtus a lot about the elderly in our community.The insight into their well-being, health andillnesses taught us how to care for them. Wealso learned the correct way to handle thevarious apparatus that they use, like thewheelchair, the walker, etc. It was a goodsession and it made me feel that the elderlypeople should be given lots of love and attentionin their twilight years.”

Azgor Hossain BinMohammed from KeppelBenoi lends SSTI trainer,

Grace Sim, a helping handwith the walking aid

CY Ho, CEO of Keppel AmFELS,and HR Administrator NormaSaldana receiving a CommunityImpact Award from Traci Wickett,President of the United Way ofSouthern Cameron County

T hanks to the efforts of localvolunteer organization, UnitedWay of Southern Cameron

County, the communities of Brownsville,Olmito, Los Fresnos, Laguna Vista, PortIsabel and South Padre Island area have aplatform with which to launch theircommunity outreach programmes.

Employees of Keppel AmFELS showedtheir care for the community incontributing to the 2005 United Way ofSouthern Cameron County Campaign.This has made Keppel AmFELS one of thelargest donors in South Texas and the

largest private donor in Cameron Countywith a contribution of close toUS$200,000.

In recognition of this, Traci Wickett,President of the United Way of SouthernCameron County presented CY Ho, CEOof Keppel AmFELS with a CommunityImpact Award.

United Way of Southern Cameron Countyfunds over twenty programs meetingneeds in two broad areas of impact-Successful Children and Tools forLiving.

United way to serving the community


K eppel O&M participated in theSingapore Dragon Boat Festival thattook place on 1 and 2 July 2006 at

the Bedok Reservoir. With team membershailing from various business units, it was greatto see their teamwork put into play on the row.

Participating in the corporate category, our boyscame up against stalwarts like SingaporeAirlines. They rowed valiantly with cheersaplenty from the Keppel supporters, just almostmaking it past the heats.

Nevertheless, the team and their supportersthoroughly enjoyed immersing themselves inatmosphere of more than 3,500 participants and20,000 spectators.

Dragon-boater Mohammed Sunny, from KeppelFELS Production, said, “Dragon boating canbring people of different nationalities to row

Riding the Dragon

The “Can Do!” spiritcomes alive!together as a team. It is all about the team spirit.

No matter what happens, we do not leaveanyone behind.”

P rovide employment andcontribute to the overalldevelopment of Brownsville,

Texas. That’s the community commitmentaim of Keppel AmFELS even as it growsas a corporation.

The most equipped offshore yard in theGulf of Mexico, Keppel AmFELS placesstrong emphasis on social responsibilityand this is evident through the shipyard’sconsistent support to community,educational and welfare organisations.

In line with its vision, the companyrecently established engineeringscholarship programmes at the Universityof Texas-Pan America, University of TexasBrownsville and Texas Southmost College

A boost for aspiring engineersby giving $5,000 to each university’sengineering programmes as scholarships.

In the 10 August 2006 edition ofBrownsville Herald, a local newspaper, itwas reported, “universities rely greatly oncommunity support for their success andgrowth.”

Gilbert Elizondo, Keppel AmFELS’HR Vice President, shared, “There aremany aspiring engineers in Brownsvillewho do not have the opportunity topursue their dreams because of the lackof resources. It is our hope that thescholarship will propel them towardsrealising their goals, and at the same timehelp raise the level of education amongstour youth.”

(L to R) Dr Juliet V. Garcia, UTB/TSCPresident, CY Ho, and Elaine Rivera,Financial Aid Director


Colours of Nationhood

A pledge to the nation

Keppelites in Brazil celebratesSingapore’s 41st birthday

Beating the morning blues

W hile many Singaporeanscelebrated the nation’sindependence late into the

night on 9 August 2006, Keppelitesgathered at the yard as early as 7am on10 August for its annual National DayObservance Ceremony.

Gracing the occasion was Mr GanKim Yong, Minister-of-State for Educationand Manpower. He opened the ceremonyon an upbeat note, acknowledging thegrowth and development of Keppel O&Mon the global scene.

CH Tong credits the group’s success to thecommitment and dedication of itsworkers, as well as the support of theUnion.

However, he urged everyone to remainvigilant on safety even in the busiestperiod of our history. He said, “We mustexecute all our projects very well. Wemust deliver every single one of ourprojects on time and on budget. Most ofall, we must deliver them withoutincident. I want all our workers andcontractors to return home at the end ofevery workday safe and sound.”

Keppel O&M also honoured 145

Pauline Tan, from Procurement at FSTP,a consortium of Keppel and Technip,shared, “This is the moment when weremember that everyone plays a part inbuilding a united nation for a bettertomorrow. I am proud to be aSingaporean. Watching the NDP makesme miss home!”

“I wish I had witnessed the parade inperson. I wish Singapore a HappyBirthday and a brighter future!” enthusedZeon Chong, also from Procurementdepartment.

The night closed with two delectablebirthday cakes specially baked byBT Leow, Executive VP, Commercial, ofKeppel FELS Brasil.

Keppelites who have dedicated manyyears and hard work to the organisationfor 10, 30, 35 and 40 years.

Painting Copacabana red

On 11 August in Brazil, Keppelites andtheir families came out in red and whiteto celebrate the nation’s independence atthe Copacabana’s Zhon Guo Restaurantin Rio de Janerio. It was difficult to missthem.

In the typical Singaporean embrace ofother cultures, Keppelites marked theoccasion by having a great feasting withtheir Brazilian colleagues and customersfrom Petrobras.

Kicking off the night was Keppel FELSBrasil’s CEO Tay Kim Hock who sharedon the growth of Singapore in the last 41years, “We are a nation without any naturalresources. Yet, with good governance anda hardworking people, we have progressedto become a world-class nation.”

The highlight of the evening was thescreening of the National Day Parade(NDP) downloaded via the company’sFTP site. The patriotic Singaporeans andfriends stood to attention as they sang thenational anthem.


Wellness in the yards

No smoke about it – the two-dayAnti-Smoking Campaign at KeppelShipyard met with encouragingresponse from employees

Employees having fun participating inthe games to learn more about AID

Abu Bakar, General Manager(Operations), represented Keppel

Shipyard to receive the award

K eppel places emphasis on itsemployees’ well-being and thisis demonstrated through many

activities organised by the yards. Thevarious staff programmes and initiativesare part of the group’s effort to promote ahealthy lifestyle and support ofemployees.

Anti-Smoking Campaign

Keppel Shipyard launched its own Anti-Smoking Campaign on 29 June 2006following positive feedback on thecompany’s participation in the “World NoTobacco Day” and “The National SmokingControl Campaign 2006”.

All its three yards (Benoi, Gul and Tuas)rallied together in the two-day campaignlaunch, packed with a series of healthawareness talks, alongside variousexciting activities and games. Prizes suchas bags of sugar-free sweets, apples,tidbits, and canned drinks also helpeddeter the smoking habit.

measures of Human ImmunodeficiencyVirus (HIV) and AcquiredImmunodeficiency Syndrome (AIDS).

At the same time, a exhibition withinformation on safe and unsafe sex rovedparts of the yard from 8-14 August 2006.This is part of HPB’s RESPECT (RallyingEmployers to Support the Prevention,Education and Control of STI/HIV/AIDS)Programme.

Distinguished Defence Partner Award

For its outstanding support for nationaldefence, Keppel Shipyard was presentedthe Distinguished Defence Partner Award,a grade higher than the MeritoriousDefence Partner Award it received lastyear.

The Awards were presented to companiesin recognition of their support forNational Service and the important rolesof the civil resource owners in helping theSAF maintain a high level of operationalreadiness.

AIDS Awareness Campaign

The Health Promotion Board (HPB) andAction For Aids held an AIDS AwarenessMobile Showtime on 10 August 2006during lunchtime at Keppel Shipyard’sworkers’ canteen.

A celebrity emcee serenaded the workerswith several tunes and entertained themwith educational games to share themessage on the risks and prevention


1

2

3

4

Whoa! Madness

I t was a night of merry making, excellent music and culinarydelights for Keppelites, their guests and their families.

Keppel O&M hosted a reception for guests and employees inconjunction with the ‘World of Music, Arts and Dance (WOMAD)Singapore 2006’ on 25 and 26 August at Fort Canning Park. Itwas the perfect showcase for world music with artistes fromNigeria to Peru, Brazil to Puerto Rico, playing on different stagesaround the park.

Keppel O&M was also proud to present Brazilian artist ChicoCesar’s performances where he thrilled the crowds with hiswonderful songs and dances. The Keppel guests were thoroughlyentertained with his pieces and mingled with him at the Keppelpavilion.

Eduardo Autran, MD of Petrobas Singapore, who was enthralledby the evening’s programme, said, “The music is fantastic, the

food and drinks are great. It is a good place to listen to musicand have a chat with friends outside the workplace.”

Turret Construction Manager of the FPSO P-53, GersonVerlangieri, added, “We were very happy to see Chico Cesar.I had never heard his music before but now, as I have told him,he has a new fan! It is really a special event for people who lovemusic and different cultures.”

Gulfmark Offshore’s Newbuilding Superintendent, Ray Mintowas intoxicated by Chico Cesar’s music too: “It was a greatperformance, a real highlight of the evening. Keppel is reallygood at organising entertainment for our benefit and we’re reallyappreciative of that.”

Getting jiggy with it

During the WOMAD festival, Keppel employees were treated

1 2

7


with a special workshop conducted by Risenga Makondo, atalented percussionist and dancer from South Africa, who hasperformed in theatres throughout the United Kingdom.

Bernard Tey, Senior Subcontract Officer from Keppel FELS, saidin awe, “I had a fantastic time at WOMAD, especially with theclosed-door workshop. The enjoyment continued way past theworkshop and into the other events for the day. Seeing theshowcases of different international cultures drives home one ofKeppel O&M’s core values, which is to have a global mindset.”

Rodney Chin, Legal Counsel from Keppel OM, described it thisway, “Chico Cesar’s Brazilian folk pop music brought everyoneto their feet! The highlight was certainly Risenga Makondo’sworkshop, which was dynamic, funny and fun-filled – to see 50fellow Keppel colleagues moving to the South African rhythmsis indeed a sight to behold!”

Clockwise from left:1 Martin Watts, Area Director of Gulfmark Offshore Inc.

trying out a new dance2 Dancing to a global beat: Keppelites learning the moves

from Risenga Makondo3 Chico Cesar wowing a packed audience at Fort

Canning Park4 The Brazilian contingent from Petrobras hanging out

with Chico Cesar5 Making full use of the Keppel mat while catching Chico’s

performance up close6 CH Tong enjoys a jovial conversation with Erik Madsen,

Site Manager of Maersk and his wife, together withWong Fook Seng, GM (Projects) and his daughter

7 Taste the world: Chico Cesar (left) cooking up a stormat the culinary stage while CB Choo enjoys the food andconversation with Mrs Eileen Choo (far right) and thepeople from the Brazilian embassy

3 4

6 5


1 Ron Couet and his wife enjoying theraces with Yeo Yue Ngiap

2 Watching the horses go toe to toe3 It was food, horses and great company

as Keppelites and their guests enjoythe latest Sundowner activity

4 ED Michael Chia (right) laughs heartilyas he wishes Glen (centre) and Wilsonhappy birthday

Sundowner goes to the races

The tension in the air was palpable.Everyone held their breath inanticipation as the horses

approached the finishing line. It was closebut SHENZOU just edged out MAXRICHacross the line by an arm’s length. Behinda glass booth overlooking the track, thecrowd cheered in delight.

And so began a night of drama, laughterand camaraderie as the Keppel FELS’monthly Sundowner got underway in atwo-part special that saw Keppelites andtheir customers get together at the TurfClub on 30 June and 28 July 2006.

Held at the end of every month,Sundowner is an occasion where KeppelFELS and its customers let their hairdown.

Holding the event at the Turf Club drewenthusiastic response from customerssuch as Diamond, ENSCO,GlobalSantaFe, Maersk, SeaDrill, Sinvestand Transocean, and as well our ownKeppelites.

Organised by the marketing departmentof Keppel FELS, guests were treated to aspectacular view of the horses from anexclusive VIP gallery. It brought out thecloset gamblers in all but the mostresolute. Opinions were sought and

2

3

1


advice freely given as people anxiouslyscanned the television screens showingthe odds and nervously placed their bets.

In the midst of it was a scrumptious feastthat not only tantalised the taste buds butalso provided energy to the excitedspectators. Some lounged in the leatherchairs enjoying the races while somepored over sheets of paper for informationon the horses and still others filled uptheir bellies at the buffet table.

Ron Couet, Project Manager from ENSCOcame with his wife and thoroughlyenjoyed himself, saying, “Keppel FELS hasbeen very professional and we feel likepart of the family here. These events helpto foster relationships between Keppeland their customers.”

Glen Gibson thought it was his lucky daywhen his pockets filled up with moremoney than when he came. It would onlyserve to be the icing on the cake (literally)as he was surprised with a cake and abirthday song. The occasion was sharedby Keppel FELS’ Senior Project ManagerWilson Goh who was just as surprised tocelebrate his birthday on 28 July.

Reflecting on a successful sundowner,Glen said, “It was a welcome change andI was really surprised as I didn’t tellanyone it was my birthday. I went homea lucky man indeed.”

T he Offshore Northern Seas2006 (ONS 2006) exhibition,conference and festival in

Stavanger between 22 and 25 Augusthave exceeded all the organiser’sexpectations.

The 1,251 exhibitors attracted some34,000 visitors, with well over 1,100paying delegates. With 50 per centof the exhibitors coming from outsideNorway, the exhibition occupied justover 17,500 square metres of standspace.

Keppel’s “near market, nearcustomers” yards in the North Sea –

ONS 2006 hailed asa big success

Keppel Verolme (The Netherlands) andOffshore & Marine (Norway) – werepresent at the exhibition.

For Offshore & Marine ASA, this year’sexhibition was especially remarkable. Itstwo sets of Wireline Units for Deepwellwas a feather in its cap when the unitswere nominated for the ONS 2006Innovation Award.

The two companies made a splash at theconference with a cocktail reception forcustomers and friends. The Keppel FELSteam, led by CH Tong, joined them inthe party.

CH Tong (fifth from left) and his team at the Offshore & Marine ASA booth

Customersenjoying

the KeppelCocktail

4


Around our yardsOffshoreMarine tracks works carried out at various Keppel yards.

Singapore

Keppel Shipyard Tuas

Name : NICHIHIKOOwner : Nissho Odyssey Ship

Management Pte LtdCountry: JapanType : Oil TankerDWT : 257,987 tonnesDate : 13 – 28 August 2006Scope : Hull coating • overhauling of

sea valves • withdrawal oftailshaft • overhauling ofcargo oil and ballast pumps •coating of underdeck bridgewing

Keppel Shipyard Benoi

Name : FRONT BIRCHOwner : Frontline Management A S

(Managed by Vships)Country: NorwayType : Oil TankerDWT : 135,000 tonnesDate : 18 July - 21 August 2006Scope : General survey and repair

Name : SUNRISE VOwner : Nippon Oil TankerCountry: JapanType : Oil TankerDWT : 264,164 tonnesDate : 8 – 28 August 2006Scope : General survey and repair

Name : MaysoraOwner : Hijazi & Ghosheh Food StuffCountry: JordanType : Dry Cargo –

Livestock CarrierDWT : 28,338 tonnesDate : 4 – 22 August 2006Scope : Maintenance and repair

Name : S K SUNRISEOwner : Iino Kaiun Kaishi Ltd / Iino

Marine Service CoCountry: JapanType : LNG MembraneGRT : 92,927 tonnesDate : 1 August – 18 August 2006Scope : General survey and repair

Philippines

Keppel Batangas Shipyard

Name : LADY MARIONOwner : Dongwon Industries Co. Ltd.Country: KoreaType : Purse SeinerGRT : 981.67 tonnesDate : 7 June – 4 July 2006Scope : Hull cleaning • blasting and

painting • overhauling of theair coolers, boom, mainengine and sea valves •tailshaft and propellerwithdrawal

Name : ASIA CEMENT NO. 2Owner : U-Ming Marine Transport

CorporationCountry: TaiwanType : Cement CarrierGRT : 8,165.94Date : 11 – 28 August 2006Scope : Hull cleaning • blasting and

painting • engine room andballast pipes renewal • seavalves overhauling • boilerrepair • steelworks

SUNRISE V ASIA CEMENT NO. 2


Name : SAINT PETER THEAPOSTLE

Owner : Negros Navigation CompanyInc.

Country: PhilippinesType : Passenger Ro-roGRT : 6,090.33Date : 17 July – 2 September 2006Scope : Steelworks on bottom tank

top and internals • cleaning,gritblasting and painting ofhull • stern tube overhaulingand propeller repair • fueland lube oil tanks cleaning •steelworks on wagon, poopand forecastle deck

Keppel Cebu Shipyard

Name : M/TKR “CARBON DRAGON”Owner : Kristian Gerhard Jebsen

Skipsrederi AS

Country: NorwayType : Asphalt/Bitumen tankerDWT : 3,884.00GRT : 2,967.00Date : 31 May – 22 August 2006Scope : Upgrading of generators •

renewal of main switchboardand transformer, propulsionworks • bearing renewal •drydocking

Name : MV “ALCANTARA CARRIER”Owner : Norbulk Shipping UK Ltd.Country: United KingdomType : Refrigerated CargoDWT : 6,553.00GRT : 4,963.00Date : 5 August – work in progressScope : Special survey • steel renewal

at various locations • majorrepair and maintenanceworks on rudder andpropeller • deck machinery

overhauls • renewal of hullanodes • electrical motoroverhauls including mainswitch cleaning, various tankcleaning • quadrennialsurvey of cargo derrick boom

Name : MV “MAGDALENAOLDENDORFF”

Owner : Egon OldendorffCountry: GermanyType : Log/Bulk CarrierDWT : 23,515.00GRT : 14,762.00Date : 19 June – 3 July 2006Scope : Fabrication and installation

of propeller blades tips •overhauling of forward andaft seals • steel repair ofcargo hold hatch cover •overhauling various mainengine machinery •drydocking

MV “ALCANTARA CARRIER”

M/TKR “CARBON DRAGON” LADY MARION

MV “MAGDALENA OLDENDORFF”


Keppel Group Newsbytes

Keppel Corporation delivered robustgrowth with a record first half attributableprofit of $366 million and earnings pershare of 46.5 cents, on the back ofS$3,190 million revenue.

Annualised return on equity (ROE) scaledto a new benchmark of 18.5%. EconomicValue Added (EVA) at S$193 million forthe first half of 2006 was also at an alltime high, equivalent to that which wasachieved for the whole of 2005.

Group revenue at S$1,646 million for thesecond quarter of 2006 was 42% abovethe corresponding quarter in 2005. Thisis due to higher revenue reported by theOffshore & Marine and PropertyDivisions.

Group profit before tax at S$332 millionand attributable profit before exceptionalitems at S$196 million for the secondquarter were 65% and 47% higher thansame period in 2005 respectively.

——●——

Keppel Land reported PATMI of$80.6 million for the six months ended

30 June 2006, up 20.3% from the firsthalf of 2005. Overseas earnings made up65% of PATMI in the first half of 2006compared with 57% a year ago and 59%for FY2005. The 36.7% growth inoverseas PATMI to $52.5 million in thefirst half of the year was due mainly tohigher profit contributions from theGroup‚s development projects in China,India, Vietnam and Indonesia.

Keppel Land has increased its stake from35.37% to 64.63% in the joint ventureD L Properties (DLP), which owns the28-storey Equity Plaza, located in RafflesPlace.

Keppel Land acquired the 29.26% interestin DLP for S$17.9 million from theexisting joint-venture partner; SumitomoCorporation and Sumitomo Corporation(Singapore) Pte Ltd. Capitaland (Office)Investments Pte Ltd holds the remaining35.37%.

——●——

Keppel Integrated Engineering (KIE)has secured a $13.5 million contract fromTianjin Taihuan Recycling Resources

Utilisation Co. Ltd to providetechnologies and services for its waste-to-energy (WTE) plant.

The contract reaffirms KIE’s position asthe market leader for imported WTEsolutions in China where the companyhas 60% of the market.

——●——

KIE has also secured a S$30 millioncontract to provide technologies andservices for the first waste-to-energy(WTE) plant in Finland.

Securing the contract for Finland’s firstWTE plant for municipal solid waste is avery significant breakthrough for Keppelas well as the acceptance of WTE in thecountry.

Keppel will continue to deliver value to our shareholders. From left: Teo Soon Hoe, Group Finance Director, Lim Chee Onn, Executive Chairman and CB Choo, SeniorExecutive Director, of Keppel Corporation


Global ReachKeppel Offshore & Marine Ltd(Head Office)50 Gul Road Singapore 629351Tel: 65 6863 7200Fax: 65 6261 7719www.keppelom.com

SINGAPOREKeppel FELS Limited(Pioneer Yard 1 – Head Office)50 Gul Road Singapore 629351

(Pioneer Yard 2)55 Gul Road Singapore 629353

(Shipyard Road)31 Shipyard Road Singapore 628130

Tel: 65 6863 7200Fax: 65 6261 7719Email: [email protected] Persons: Michael Chia, Executive DirectorS Jaya Kumar, General Manager (Marketing)

Keppel Shipyard Limited(Tuas Yard – Head office)51 Pioneer Sector 1 Singapore 628437Tel: 65 6861 4141Fax: 65 6861 7767

(Benoi Yard)15 Benoi Road Singapore 629888Tel: 65 6861 6622Fax: 65 6861 4393

(Gul Yard)55 Gul Road Singapore 629353Tel: 65 6861 3007Fax: 65 6862 3645/7

Email: [email protected] Person: Nelson Yeo, Executive Director

Keppel Singmarine Pte Limited15 Benoi Road Singapore 629888Tel: 65 6861 6622Fax: 65 6862 1792Email: [email protected] Person: Hoe Eng Hock, Executive Director

Offshore Technology Development Pte Ltd55 Gul Road Singapore 629353Tel: 65 6863 7409Fax: 65 6862 3465Email: [email protected] Person: Dr Foo Kok Seng, General Manager

Deepwater Technology Group Pte Ltd50 Gul Road Singapore 629351Tel: 65 6863 7163Fax: 65 6863 1739Email: [email protected] Person: Aziz Merchant, General Manager

Asian Lift Pte Ltd23 Gul Road Singapore 629356Tel: 65 6668 4222Fax: 65 6668 4333Email: [email protected] Person: John Chua, General Manager

Keppel Smit Towage Pte Ltd23 Gul Road Singapore 629356Tel: 65 6668 4222Fax: 65 6897 8056Email: [email protected] Person: Ben Chew, General Manager

AUSTRALIAKeppel Prince Engineering Pty LtdLevel 7, 3 Bowen CrescentMelbourne, Victoria 3004, AustraliaTel: 61 3 9820 9033Fax: 61 3 9866 6110Email: [email protected] Person: Charles Chiam, Director

AZERBAIJANCaspian Shipyard Company LtdSouth Bay, KMNF BasinBaku AZ1023, AzerbaijanTel: 994 12 449 9930Fax: 994 12 449 9931

Email: [email protected] Person: Bill Kee, President

BRAZILKeppel FELS Brasil S/ARua da Assembeia, 10 – 200220011-000 Rio de Janeiro, RJ, BrazilTel: 55 21 2102 9400Fax: 55 21 2224 2248Email: [email protected] Person: Tay Kim Hock, President & CEO

BULGARIAKeppel FELS Baltech Ltd54 Debar Street, Varna 9000, BulgariaTel: 359 52 684 250/1Fax: 359 52 684 252 (Admin)Email: [email protected] Person: Lyudmil Stoev, General Manager

CHINA/HONG KONGKeppel Nantong ShipyardNo. 9 Yan Jiang Road, Nantong City, Jiangsu ProvinceP.R. China 226005Main line: 86 513 8530 0000 / 86 513 8560 3121Fax: 86 513 8560 1936Email: [email protected] Person: Lee Tai Kwee, President

Keppel FELS Engineering Shenzhen Co., Ltd.3th Floor, Chiwan Petroleum BuildingChiwan Road No. 5P.R. China 518068Tel: 86 755 26851902, 86 755 26851959,Tel: 65 68637215 (Singapore Contact)Fax: 86 755 26851670Email (China): [email protected] (Singapore): [email protected] Person: Ho Jong Heng, General Manager

INDIAKeppel FELS Offshore and Engineering ServicesMumbai Pvt LtdUnit Number 3, 8th Floor, Prism Tower-AMindspace, Link Road, Goregaon (West)Mumbai 400 062, IndiaTel: 91 22 4001 8888Fax: 91 22 4001 8898E-mail: [email protected] Person: Anant Shukla, General Manager

KAZAKHSTANKeppel Kazakhstan LLPSEZ “Seaport Aktau”, Aktau 130000, Mangistau OblastRepublic of KazakhstanTel: +7 3292 571 100HP: +7 300 528 4885Fax: +7 3292 571 110Email: [email protected] Person: Yick Ping Wong, General Director

NETHERLANDSKeppel Verolme BVProf. Gerbrandyweg 25, 3199 KK Rotterdam-BotlekHarbour no. 4550, P O Box 1001, 3180 AA RozenburgThe NetherlandsTel: 31 181 234300Fax: 31 181 234346Email: [email protected] Person: Harold W.M. Linssen, Managing Director

NORWAYOffshore & Marine ASAStrandgaten 147, P O Box 4254304 Sandnes, NorwayTel: +47 5160 2500Fax: +47 5160 2510Email: [email protected] Person: Inge Oliversen, President

PHILIPPINESKeppel Philippines Marine IncUnit 3-B Country Space 1 BuildingSen. Gil Puyat Avenue, Salcedo Village1200 Makati City, PhilippinesTel: 63 2 892 1816Fax: 63 2 815 2581, 63 2 892 4604Email: [email protected]@keppelpm.com

www.keppelphilippinesmarine.comContact Person: Toh Ko Lin, President

Keppel Batangas ShipyardBarrio San Miguel, 4201 Bauan, BatangasPhilippinesTel: 63 43 7271532 to 36Fax: 63 43 7271453Email: [email protected]

Keppel Cebu Shipyard IncDad Cleland Avenue, 6015 Lapu-Lapu City,Cebu, PhilippinesTel: 63 32 340 0081 to 89Fax: 63 32 340 0068, 63 32 340 0096Email: [email protected] Person: Fok Swee Yin, President

Subic Shipyard and Engineering, Inc.Cabangaan Point, Cawag2209 Subic, Zambales, PhilippinesTel: 63 47 232 2380Fax: 63 47 232 3350, 63 47 232 3883 to 84Email: [email protected] Person: Charles Yap, President

UNITED ARAB EMIRATESArab Heavy IndustriesP O Box 529, Ajman, UAETel: 971 6 526 3232Fax: 971 6 526 3233Email: [email protected] Person: Y K Leong, Managing Director

USAKeppel AmFELSPO Box 3107, 20000 South Highway 48Brownsville, TX 78523, USATel: 1 956 831 8220Fax: 1 956 831 6220Email: [email protected] Person: Ho Cheok Yuen, President & CEO

Keppel Offshore & Marine USA5177 Richmond Ave, Suite 1065Houston, Tx 77056, USATel: 1 713 840 8811Fax: 1 713 840 1198Email: [email protected] Person: Chow Yew Yuen, President

FloaTEC, LLC14701 St. Mary’s LaneSuite 250, Houston, TX 77079Main Tel: +1 281 870 5200Main Fax: +1 281 870 5210Email: [email protected]: www.FloaTEC.comContact Person: Eric H. Namtvedt, PresidentDirect Tel: +1 281 870 5556Mobile: +1 281 381 2781Email: [email protected]

Keppel Marine Agencies, Inc(Texas Office)5177 Richmond Ave, Suite 1065Houston, Tx 77056, USATel: 1 713 840 1188Fax: 1 713 840 1960Email: [email protected] /[email protected] Person: Michael Holcomb, President/DirectorJohn C Bajor, Marketing Manager

(New Jersey Office)15 Huddy Avenue, PO Box 417Highlands, New Jersey, USATel: 1 732 872 8800Fax: 1 732 872 8801Email: [email protected] Person: John J. Bajor, Director

VIETNAMKeppel FELS LimitedPetrovietnam Tower, Suite 150M9 Hoang Dieu Street, Ward 1, Vung Tau CityS.R. VietnamTel: 84 64 850098Fax: 84 64 850089Email: [email protected] Person: Henry Sng, Country Manager


With its huge reserves of oil and gas, Russiahas always been an important market forKeppel O&M.

According the latest reports by the EnergyInformation Administration, the country has theworld’s largest proven gas reserves of 1,680trillion cubic feet, and its proven oil reserves at60 billion barrels is the eighth in the world.Probable and possible oil reserves are even moreat 67 billion barrels. Russia is also the world’slargest producer and exporter of gas, and rankssecond in terms of world crude oil production.

Keppel’s relationship with Russia dates back tothe ‘80s when Keppel Shipyard and KeppelFELS serviced various owners in shiprepair,ship conversion and offshore rig constructionand repair respectively. Work from Russiatapered down following the dissolution of theUSSR in 1991, as much of the country focusedon the development of a market economy. Thecountry is now enjoying a renaissance ofconsistent economic growth.

Keppel’s first projects in recent years for theRussian market are the construction of two

K eppel Singmarine clinched contractsfor two highly specialised vessels fromLUKOIL – Kaliningradmorneft

(LUKOIL), a subsidiary of leading Russian oilcompany, LUKOIL Oil Company.

Keppel O&M also signed an agreement withLUKOIL for further co-operation in potentialnewbuilding of offshore rigs, special purposeoffshore facilities and vessels, and to serviceLUKOIL’s offshore oil terminal vessels at KeppelO&M shipyards around the world.

Charles Foo, MD (Special Projects) of KeppelO&M and Chairman of Keppel Singmarine,said, “This partnership with LUKOIL representsa strategic milestone in the Keppel Offshore &Marine group’s effort to enhance its services forthe Russian energy and offshore-related market.

“We are pleased with LUKOIL’s confidence inKeppel. As we work in partnership withLUKOIL, we also endeavour to renew andstrengthen our ties with other Russian ownersto offer them our comprehensive range ofproducts and services in our global yardnetwork to meet their needs.”

A new touch of class

An artist impression of the icebreaker and the ice-breaking supply vessel which Keppel Singmarine is building for LUKOIL


First drilling rig for Brazilian waters - Keppel Offshore & Marine

Documents

Transcript of First drilling rig for Brazilian waters - Keppel Offshore & Marine