Keppel’s Integration Efforts Bear Results With million contracts

The integration of Keppel Corporation’s offshore and marine businesses has contributed to a $16 million (S$29 million) swamp barge contract clinched as a result of the synergy of the offshore and specialised shipbuilding divisions. Furthermore, with the integration and Keppel’s sharper focus on specialised shipbuilding, especially support vessels, the offshore and marine group has also won a new contract worth S$21 million from Keppel Smit Towage for three 60-ton tugs which are due for delivery in mid 2003. These tugs, a utility boat and two terminal tractor tugs, will be deployed by Keppel Smit Towage in Brunei for charter to Brunei Shell Petroleum Company. The integration, which was officially launched on 1 May 2002, has enhanced Keppel’s flexibility to package the world-class rig design, procurement and project management expertise of its offshore division with the competitive pricing of its shipbuilding division. As a result, Keppel is able to put in an attractive bid to build the swamp barge drilling unit for Indonesian drilling contractor, PT Apexindo Pratama Duta (PT Apexindo). Said Mr Tong Chong Heong, Chief Operating Officer and Managing Director of Keppel Offshore & Marine, “The bundling of our services allows us to strike a win-win deal with PT Apexindo. This contract is an example of maximising value for our clients by giving them a matrix of cost-competitive cum world-class services.” Mr Hertriono Kartowisastro, President Director of PT Apexindo commented, “When Mr Tong handed me Keppel’s bid, he told me that it was their best offer, and true enough, we found Keppel’s price to be the most competitive among all the bids which we received. In addition, I’m pleased that we are going to get top-notch services that are typical of Keppel.” Keppel’s offshore division is reputed for completing projects on time and within budget. Its newbuilding division has a proven track record for quality workmanship in the construction of customised vessels. The scope of work for the construction of the 244-ft swamp barge will involve detailed engineering, fabrication and procurement as well as installation of the owner’s supplied equipment. Upon completion, the barge will be capable of oil and gas exploration and production in water depth up to 7.62m (25 ft) and will have a drilling depth capability of 7,600m (25,000 ft). Delivery is scheduled for the first quarter of 2003, and the barge will be deployed in the Tunu Field, East Kalimantan for TotalFinaElf Indonesia for a period of at least five years. PT Apexindo Pratama Duta is a subsidiary of PT Medco Energi International Tbk, the first drilling contractor to be listed on the Jakarta Stock Exchange. PT Apexindo currently owns and operates two semi-submersible swamp barges in Kalimantan and one jack-up rig in the Middle East. Operating as far as Diego Garcia, Indonesia and Malaysia, Keppel Smit Towage is 51% owned by Keppel Shipyard and 49% owned by Smit International Singapore. Its services include harbour towage, standby duties, tow out of offshore structures, ship resort, outside port limit ship-to-ship transfer, marine support and coastal towage.