Keppel FELS Unit Secures Contracts

Keppel FELS Limited (KFELS), the offshore arm of the Keppel Group, through its subsidiary in Brazil, FELS Setal SA, has signed two contracts worth a total of $104 million. These jobs bring FELS Setal’s total contracts secured to $250 million since its incorporation 18 months ago.

The first job clinched is the $90 million contract for three Anchor Handling Tugs / Supply vessels (AHTS) for Delba Maritima, a Brazilian offshore vessel operator. This follows the Letter of Intent recently announced on October 30, 2001. FELS Setal secured another $14 million contract from Halliburton Produtos Ltda, a subsidiary of Kellogg Brown & Root Inc, for the fabrication of four manifold modules, to be used for the Caratinga and Barracuda Fields in Campos Basin, offshore Brazil.Managing Director of KFELS Tong Chong Heong said, “We are very pleased to seal the contract for the three AHTS and secure another contract from Halliburton.”

In February 2001, Halliburton awarded FELS Setal a $75 million contract for the marine conversion of VLCC Stena Concordia to an FPSO to be renamed P-48.For the building of the AHTS, there will be scope for cooperation between FELS Setal in Brazil and Keppel Singmarine in Singapore. The latter has successfully built six similarly sophisticated AHTS between 1999 and early 2000. The three multi-functional AHTS will be chartered to Petrobras for eight years, supporting the offshore platforms and Floating Production Storage and Offloading vessel(FPSOs) operating in the Campos Basin. Each vessel will take between 22 to 30 months to build. The $14 million contract involves the building of four manifold modules, two each for Petrobras P-48 and P-43 FPSOs, which are expected to work in the Caratinga and Barracuda Fields respectively.The contract also entails the prefabrication and erection of riser pipes, lay down areas, flare booms and central pipe racks. FELS Setal’s Niteroi Yard in Rio de Janeiro will undertake the construction of the modules and riser pipes, while Brasfels Yard in Angra dos Reis will carry out the rest of the work. Both yards have obtained the ISO 9002 certification by Bureau Veritas Quality International (BVQI). Halliburton is responsible for the US$2.5 billion development of the production facilities for the Caratinga and Barracuda Fields in the Campos Basin. The fields are expected to come online in December 2003. FELS Setal is a 60/40 joint venture between KFELS and the PEM Setal Group of Brazil. Operational for just over a year since the partnership was formed in early 2000,