Keppel Verolme BV, a wholly owned subsidiary of Keppel Offshore & Marine Limited (Keppel O&M), has secured two contracts totaling EUR 75 million (S$160 million) on the back of an upsurge of offshore activities in the North Sea.

Of the two new contracts, one is a repeat order for the outfitting of a Floating Production Storage and Offloading (FPSO) facility, Sevan Voyageur, for Sevan Production AS. Work is expected to be completed in the summer of 2008.

This is the third cylindrical FPSO facility that Keppel Verolme is carrying for the same owner. The vessel has an oil storage capacity of 300,000 bbls, with an oil process capacity of 30,000 barrels/day and a water injection capacity of 20,000 barrels/day.

The world’s first cylindrical FPSO facility, Sevan Piranema, was completed in Keppel Verolme in January 2007. The second unit, Sevan Hummingbird, also completed by Keppel Verolme, was delivered recently. In all three projects, Keppel Verolme’s scope of work entails the outfitting of marine and process equipment and final completion of all works for the facility at its location, with the hulls built in China.

Mr Harold Linssen, Managing Director of Keppel Verolme said, “We are very flexible in our approach to business and our focus is on the creation of added value for customers.

“One of our business models is to offer project management services for a project. We provide customers with value added services in managing costs and project-execution issues such as scheduling and assessing risks. This model is favoured by new asset-developing and asset-owning companies in Europe looking for experienced and flexible yards to work with. This model is welcomed by Sevan Marine which has created the market’s first three cylinder-shape FPSOs.”

The first cylindrical design made its appearance in offshore industry in 2004. The cylindrical hull form is believed to have a competitive edge when compared to traditional type shiptype floaters. Developed for operation in deep water fields with the lower amount of hydrocarbons, it has comparatively larger processing plants and more numbers of risers making the facility more cost-effective. The facility is capable of taking on big loads and offering large deck areas and storage capacities.

Sevan Production AS is a subsidiary of Sevan Marine ASA which is an offshore technology company specialising in floating production and storage of oil and gas.

The second contract that Keppel Verolme has secured is for the drydocking of Saipem 7000, a semisubmersible crane and pipelaying (J-lay) DP vessel for Saipem S.p.A.

Saipem 7000 is the world’s second largest crane vessel with lifting capabilities of up to 14,000 tonnes. On 11 December, the Saipem 7000 was successfully been drydocked in Keppel Verolme’s mammoth dock for its first time in her 20-years lifespan.

Keppel Verolme will renew the hull coating system and carry out maintenance works to the underwater equipment, such as the thrusters, overboard valves, quick ballasting system and the impressed current system. Work on Saipem 7000 is expected to be delivered in first quarter 2008.

Saipem Group is a subsidiary of Eni, an Italian oil and gas industry contractor. It is a leader in the provision of engineering, procurement, project management and construction services.

Keppel Verolme has made its mark in the North Sea region for on-time, on-budget services in the new construction and repair market. Major projects in the yard included the upgrading of the Blackford Dolphin semisubmersible and the construction of the world’s first concrete heavy lifter for Norway’s MPU Offshore Lift AS for the decommissioning market.

Keppel O&M is a wholly owned subsidiary of Keppel Corporation Limited. It is a leader in offshore rigs, shiprepair and conversion and specialised shipbuilding. Keppel O&M's near market, near customer strategy is bolstered by a global network of 20 yards in the Asia Pacific, Gulf of Mexico, Brazil, the Caspian Sea, Middle East and the North Sea regions. Integrating the experience and expertise of its yards worldwide, the group aims to be the provider of choice and partner in solutions for the offshore and marine industry.

The contracts are not expected to have material impact on the net tangible assets or earnings per share of Keppel Corporation for the current financial year and financial year ending 31 December 2008.