Keppel wins $150 million contract in Kazakhstan

April 27, 2005
Agip Kazakhstan North Caspian Operating Co. N.V. awarded Keppel Kazakhstan LLP, a unit of Keppel Corp. Ltd through Keppel Offshore & Marine Ltd., a contract estimated at $150 million.

Offshore staff

Agip Kazakhstan North Caspian Operating Co. N.V. awarded Keppel Kazakhstan LLP, a unit of Keppel Corp. Ltd through Keppel Offshore & Marine Ltd., a contract estimated at $150 million.

Keppel's contract is to fabricate pipe racks and build four barges. Upon completion, the barges will support the first phase development of the Kashagan oil field.

The Kashagan field, the world largest oil discovery in 30 years, will be developed over the next 16 years at approximately $29 billion and yield up to 13 Bbbl.

Tong Chong Heong, managing director and COO of Keppel O&M, says, "This contract in the Caspian Sea reflects the success of our near-market, near-customer strategy in strengthening our presence in Central Asia. Keppel Kazakhstan will be able to tap into the expertise and resources available in the Keppel Group to deliver projects on time and within budget."

Bill Kee, CEO of Keppel Kazakhstan, says, "The contract signifies the start of a pioneer industry in Kazakhstan, creating employment and providing training opportunities for the Kazakhs. This is only the beginning of Keppel Kazakhstan's involvement in Kashagan's development program. The contract will allow us to further develop our facility in line with project requirements and enhance our services for our customers."

Keppel Kazakhstan complements its sister yard, Caspian Shipyard Co., in strengthening Keppel O&M's presence in the Caspian Sea.

Keppel Kazakhstan is in Aktau on the northeastern part of the Caspian Sea. The yard was set up in April 2003 to participate in and contribute to the emerging offshore oil and gas industry in the Kazakh sector of the Caspian Sea. The yard's principal activities include the design, construction, conversion, and repair of offshore drilling units and structures, specialized vessels such as tugs and supply boats, and the provision of offshore supply and logistics base.

04-27-05

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