Offshore staff

Keppel Offshore & Marine Ltd. has entered into an agreement with Consafe Offshore to sell its entire 85% stake in the Special Purpose Co. (SPC).

Keppel O&M and JCE Group set up SPC as the 85/15 joint venture company to own a semisubmersible accommodation vessel,Safe Concordia. JCE Group has since transferred its rights and obligations to Consafe Offshore.

As part of the agreement, Consafe Offshore has made a deposit payment of $34.5 million on July 1, to Keppel O&M. It will pay the balance of $50 million with interest thereon by Sept. 30, to complete the share purchase.

If it fails to meet its full payment obligation, Consafe Offshore will purchase only 35% interest in SPC to bring its total shareholding in SPC to 50%. The $34.5 million deposit payment Consafe Offshore made will be applied toward the share purchase as provided for in the agreement.

Developed by Keppel O&M's technology division, Deepwater Technology Group, Keppel FELS built theSafe Concordia on the proprietary KFELS SSAU 3600-GOM-C42 for $95 million.

Keppel completed and delivered the vessel to Consafe Offshore in March, and ConocoPhillips deployed it at the Bayu-Undan field in East Timor under a short bareboat charter.

07/06/05