JULY 2010 eppel www.kepcorp.com/ekeppelite

Keppel Group Newsletter Keppelite

Record half year results 4

Platforms for growth 38

Clipper grand adventure 40

SpecialSpecial focus:focus: AddressingAddressing globalglobal environmentalenvironmental needsneeds

MICA(P) NO. 169/01/2010 Keppelite I July 2010 21 24

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Contents

SUSTAINING GROWTH People matters 33 Creditable performance 4 Making a mark in green Sustaining growth 7 Gold rush at the Marina 34 Synergising strengths 10 Scoring a new high in safety 35 Cautious optimism 13 Equipping leaders Stronger earnings for Keppel Land as 14 Quality assurance 36 property markets improved Showcasing Singapore’s skyline Strategic acquisition 16 EMPOWERING LIVES K-REIT Asia keeps on growth track 17 Voices from the heart 37 Keppel T&T seeks new opportunities 18 Providing platforms for growth 38 Leading developer 19 Great end to a grand adventure 40

On track to deliver latest Maersk FPSO 20 Cheers to the Keppel Contingent! 42 Strong debut by K-Green Trust 21 Football fever at the lodges 43 Making every delivery count 22 Crediting teamwork Meeting of minds in Shanghai 23 Keppelites Abroad Bridging differences 44 SPECIAL FOCUS Offering sustainable solutions and development 24 NURTURING COMMUNITIES Jewel at Keppel Bay 45 Waste and water solutions provider 26 Community ties 46 New mall takes shape at Katong 29 Something to green about Keppel hosts China delegates 30 Keppel Volunteers The Singapore connection 31 Living our dreams 47 More progress at Tianjin Eco-City BACK PAGE Keppel secures $170 million Brazilian projects 48 Stellar safety performance 32

Cover image: Mr Teo Chee Hean, Singapore’s Deputy Prime Minister and Minister for Defence (first from right), was briefed on the Group’s broad portfolio of projects in environmental engineering and sustainable development by Dr Lee Boon Yang, Chairman of Keppel Corporation (centre), as Dr Yaacob Ibrahim, Minister for the Environment and Water Resources looked on. eppel

Published for people in the Keppel Group by the Group Corporate Communications Division, Keppel Corporation Limited, 1 HarbourFront Ave, #18-01 Keppel Bay Tower, Singapore 098632. Printed by Image Printers Pte Ltd, Blk 1002, Redhill Industrial Estate, Jalan Bukit Merah, #03-12, Singapore 159456.

Editorial Advisor Wang Look Fung

Editor Say Huan Yuan

Editorial Committee Agnes Wu, Andrea Lee, Ang Lai Lee, Catherine Tan, Cheryl Tang, Christie Lai, Chua Ying Ying, Diana Chan, Donald Sng, Elizabeth Widjaja, Eva Ho, Frances Teh, Grace Chia, Geraldine Lai, Hoo Yao Lin, Ivana Chua, Leanne Sim, Lee Wan Jun, Lim Kah Ai, Lynette Chong, Lynette Goh, Mak Chui Ling, Mohamed Yusof Mohamed, Raymond Chao, Roy Tan, Serena Toh, Teri Liew, Wong Chai Yueh, Woon Pek Yong, Vett Ramos, Yolanda Guo Ying

Keppelite I July 2010 CO REG NO: 196800351N Editorial Poised to capture opportunities

With governments around the world working What might change is that there could be a new together in an unprecedented co-ordinated set of rules on the playing field. More so than ever, response, a tentative global economic recovery has rig builders, drilling contractors and oil companies been gradually gathering momentum since the alike will be challenged to maintain the highest start of 2010. Public and investor confidence in standards of integrity and safety in their systems the capital markets and financial institutions were and processes. slowly returning. The likely adoption of new safety regulations in However, this fragile recovery was buffeted in the US will provide opportunities for our yards to recent months by the growing Eurozone crisis as carry out the needed safety enhancement works well as the oil spill in the Gulf of Mexico which on rigs. Tighter and more stringent standards for injected greater volatility into the US economy. the entire offshore industry will also catalyse the While it remains to be seen how the European crisis repair and replacement cycle for older rig fleets will pan out, the repercussions of one of the worst and equipment. Major oil companies are expected oil spills in history are already apparent. to choose flight to quality and opt for reputable contractors and rig builders. The Obama Administration’s announcement in late May of a six-month moratorium on deepwater As deepwater exploration and production drilling in American waters in the Gulf of Mexico continue to show promising prospects, major oil has had an immediate impact on international producers are not likely to be deterred by the higher drilling contractors, whose stocks have been costs and tighter regulations. battered by major sell-offs. After a federal judge decided in June that there was insufficient ground For Keppel, as the world leader in the design and for the May moratorium, the Administration building of offshore drilling rigs with a proven track revised and renewed the moratorium in mid-July. record for execution excellence and commitment to safety, these are opportunities to add value. Companies along the value chain of the oil and gas industry, including Keppel, have been impacted We have kept an unwavering focus on safety and by the oil spill and its implications for future guarded our integrity in all our businesses zealously. development plans of drillers and major oil In such times, we appreciate how these efforts pay companies. off and this has translated into yet another record set of results for Keppel for the first half of 2010. Notwithstanding all this, it is clear that deepwater drilling in the Gulf of Mexico cannot be stopped We will continue to enhance and strengthen our permanently. The world’s demand for oil and gas position as the provider of choice both in the is projected to continue to grow for coming industry as well as globally while sustaining value decades. Fossil fuels will remain the dominant creation for all our stakeholders. energy source for the foreseeable future, with renewable playing a supplementary role.

Keppelite I July 2010 4 Sustaining Growth Growth

Creditable performance

The Keppel Group continued upgrades and several rig KEPPEL GROUP to deliver creditable results in upgrade/repair contracts in the second quarter, resulting the first half. (S$’m) 1H 2010 1H 2009 % Change in a record first half. Group Revenue 4,888.5 6,179.7 (20.9) net profit for the half year Revenue from Infrastructure was $669 million and EPS Division decreased by 6% Operating Profit 851.6 672.0 26.7 were 41.9 cents. Annualised to $1,150 million. Lower Profit Before Tax 962.1 866.0 11.1 ROE was 21.1%. EVA of revenue from Engineering, $493 million was $41 million Procurement and Net Profit 669.3 602.6 11.1 higher than that of the Construction (EPC) contracts EPS (cents) 41.9 37.8 10.8 corresponding period in the in Qatar was partly offset by previous year.

REVENUE AND PROFITS For the second quarter, Group revenue of $2,415 million was 25% below that of the corresponding quarter in 2009 due to lower revenue from Offshore & Marine and Infrastructure Divisions. Group net profit of $347 million was 9% above the same quarter in the previous year. Higher profit from Offshore & Marine and Property Divisions were partly offset by lower profit from Infrastructure Division.

For the half year, Group revenue of $4,889 million was 21% below that of the corresponding period in 2009. Revenue from Offshore & Marine Division of $2,923 million was $1,454 million or 33% lower because of the lower volume of work. The Division completed and delivered five rigs, eight specialised vessels, four FPSO conversions/ K-Green Trust’s initial portfolio comprises three assets including the Keppel Seghers Tuas Waste-to-Energy Plant

Keppelite I July 2010 Sustaining Growth 5

higher revenue generated from the co-generation power plant in Singapore.

Revenue from Property Division of $812 million was 48% above the previous year. The increase was mainly due to the sale of Caribbean at Keppel Bay and progressive revenue recognition from Reflections at Keppel Bay. Rental income from investment properties improved because of the acquisition of an investment building in Australia in March 2010 and the additional six strata floors of Prudential Tower acquired in November 2009.

At the pre-tax level, Group profit of $962 million was 11% above that of the corresponding period in 2009. Despite the lower revenue, earnings from Offshore & Marine Division increased by 10% to $575 million. This was driven by higher operating margins achieved during the first half of the year.

Profit from Infrastructure Division decreased by 35% to $51 million as a result of lower contribution from the EPC contracts in Qatar, partly offset by improved performance from the co-generation power plant in Singapore.

Property Division recorded profit of $318 million, an

The level of enquiries for Keppel Offshore & Marine’s products and solutions is healthy as industry fundamentals remain sound Continues on page 6...

Keppelite I July 2010 6 Sustaining Growth

...continued from page 5.

The recent oil spill incident in Drive located next to the the US Gulf of Mexico is a Lakeside Mass Rapid Transit temporary setback for deep station through the water drilling in that region, Government Land Sales and in the longer term, there Programme. This project will will likely be more stringent benefit from the remaking of safety regulations and survey the Jurong Lake District and compliances for the offshore is expected to be launched oil and gas industry. New rigs by end-2010. may be required to replace the aging fleet drilling in Elsewhere in the region, deep waters. Keppel is in a township homes in China good position to provide continued to achieve good such support to the industry. sales. Residential property sales have also been In the Infrastructure Division, encouraging in Vietnam, K-Green Trust (KGT) was Indonesia and India. The listed on 29 June 2010. The Group will continue to time business trust’s initial its new launches to meet the portfolio comprises Senoko aspiration of home owners. Waste-to-Energy (WTE) Tapping on demand for homes with good connectivity, Keppel acquired a residential site at Plant, Keppel Seghers Tuas Leasing activities have Lakeside Drive located next to a Mass Rapid Transit station WTE Plant and Keppel increased with improved Seghers Ulu Pandan business sentiments. Marina increase of 79% over the net profit attributable NEWater Plant. With Bay Financial Centre Phase 1 previous year. This was to shareholders was growing demand for is now fully leased, bringing mostly due to higher profit $669 million. Offshore & “green” infrastructure assets overall pre-completion lease from residential projects Marine Division remains the globally, KGT is well-placed commitment for Marina Bay in Singapore, China and largest contributor to net to provide unitholders with Financial Centre Phases 1 Vietnam, and share of profit with 67%, followed long-term, regular and and 2 to about 80%. Ocean associated companies which by Property Division with predictable distributions. Financial Centre’s lease are developing Marina Bay 26% and Infrastructure commitment has more than Suites in Singapore. Division with 6%. Singapore’s electricity doubled from the first demand sustained its quarter of the year to about Profit from Investments PROSPECTS upward trend from the 63%. was lower as the previous Offshore & Marine Division beginning of this year. To year included contribution secured $1.9 billion of new meet the increasing demand While the world economy from Singapore Petroleum orders to date. The net and for clean energy, the continued to improve in the Company (SPC), which was order book stands at Group has advanced its first half of 2010, the pace divested in June 2009. $5 billion with deliveries plan for the expansion of recovery is uneven Exceptional gains of into 2013. Industry of the Keppel Merlimau across countries and there $422 million in 2009 fundamentals remain sound Co-generation Plant. remains volatility in the comprise principally profit as oil and gas demand, in global environment. Against from the disposal of SPC, particular from emerging The strong economic this backdrop, Keppel will partially offset by impairment countries in Asia and Middle recovery in Singapore leverage the resources and of non-performing assets. East, continues to rise. There continued to sustain demand synergies among our is a healthy level of enquiries for private housing in the businesses to achieve After taking into account for Keppel Offshore & second quarter. In May 2010, sustainable growth in the

income tax expenses and Marine’s products and the Group acquired a long term. keppelite non-controlling interests, solutions. residential site at Lakeside

Keppelite I July 2010 Sustaining Growth 7

Sustaining growth Keppel Corporation has once again turned in a better performance than the same period last year and will be paying out an interim dividend of 16 cents per share, reported CEO Mr Choo Chiau Beng. Keppelite reproduces excerpts of his speech delivered at a media and analyst conference on 22 July 2010.

UNCERTAIN GLOBAL ENVIRONMENT The past quarter has seen a slowdown in the momentum of the global recovery due to the manifold concerns over a possible spread of the Eurozone crisis, volatility in global currencies as well as the long-term sustainability of China’s growth.

Latest figures show unemployment remains a serious problem in developed economies, and Europe and the US are expected to see an extended period of low growth.

On the other hand, Asia has been resilient, and the The media and investing community engaged Keppel’s senior management on the Group’s prospects region is now the main driving force for the global recovery. The International prices have remained stable ENCOURAGING Our new yards in Brazil’s Monetary Fund has raised within the band of US$70 to BUSINESS Santa Catarina and Baku, Asia’s growth forecast this US$80 a barrel. DEVELOPMENTS Azerbaijan, will complement year to 7.5%, with China Amidst the volatile external our existing yards in those and India expected to grow Singapore’s economic environment, Keppel has countries and place us well by 10.5% and 9.4% growth has continued to seen a number of to meet the needs of these respectively. outpace projections. Official encouraging developments growing markets. figures show that Singapore for our key businesses over Although there are risks of grew by more than 20% in the first half of this year. We have also submitted a credit and asset bubbles, the past quarter and the number of bids for rig the general prognosis for government has forecasted In the area of Offshore & tenders by Brazil’s national oil Asia is positive. China’s that growth this year will Marine, the work on our company, from which we moves towards a more be in the range of 13% expansion in key markets hope to secure a share of the flexible regime for the to 15%, up sharply from such as Brazil, the Caspian orders. renminbi may also benefit an earlier prediction of 7% Sea and the Middle East is regional countries. Oil to 9%. making steady progress. Continues on page 8...

Keppelite I July 2010 8 Sustaining Growth

...continued from page 7.

Global oil consumption is major milestones, including from a local company. It demands of the growing projected to continue the successful listing of is also one of the most China market, where it holds growing in the coming years, K-Green Trust on 29 June. compact WTE plants in a leading share. with strong demand from With an initial portfolio of the world, and supports emerging economies. The quality assets in Singapore, Singapore’s aim of building KIE will also continue to Gulf of Mexico oil spill has K-Green Trust will leverage a sustainable quality pursue opportunities in understandably caused some Keppel’s international environment amidst land Europe and the Middle East. industry players to adopt a network and well- scarcity. Together with the While the financial crisis has wait-and-see attitude on established expertise to seek Senoko WTE Plant, Keppel slowed down the decisions new rig orders and this has acquisition opportunities now treats almost half of by municipal governments to in turn impacted our in Asia, Europe and the Singapore’s incinerable embark on large-scale orderbook. However, this Middle East. waste. projects, there is growing phase will pass. In the global demand for interim, our level of enquiries The Keppel Seghers Tuas Earlier this year, Keppel sustainable urban solutions has remained healthy and Waste-to-Energy (WTE) Integrated Engineering (KIE) and KIE will continue to seek we continue to focus on plant, one of the three plants also secured two contract opportunities to tap this executing our projects well, under K-Green Trust, was wins in China, one of demand. on time, on target, safely and officially opened on 30 June. which involves providing within budget. Constructed by Keppel technology for what will be With the opening of three Seghers, this is the first China’s largest WTE plant, in new distribution centres, Our Infrastructure Division WTE plant in Singapore to Shenzhen. KIE is well- Keppel Telecommunications too has seen a number of showcase WTE technologies positioned to meet the & Transportation tripled its

Keppel Integrated Engineering is well-positioned to meet the demands of the growing China market, where it holds a leading share in imported waste-to-energy solutions

Keppelite I July 2010 Sustaining Growth 9

logistics footprint in Vietnam, Keppel homes there will be Our synergistic competencies like Vietnam and Indonesia enhancing its services to the launched within the next few in all our businesses mean to sustain value creation for urban and industrial regions months, when we begin to that Keppel is uniquely all our stakeholders, and we in both North and South tap the local Tianjin market positioned to leverage see this as an area of strong Vietnam. Keppel Energy’s interest in the Eco-City. the urbanisation growth potential for our earnings work on the expansion of our trends in China and other growth in the coming years. power plant on Jurong Island LEVERAGING SYNERGY developing countries Asia keppelite is also on track. As part of our vision, Keppel aims to be a provider of In Property Division, we have choice for solutions to positioned ourselves well to sustainable environment capture value from the and urban living. We will growth in regional markets continue to marry our in the first half. Private home core competencies in sales in Singapore have environmental engineering, continued to stay healthy power generation, logistics while in the commercial and green data centres, segment, returning business as well as property and confidence has boosted township development, and leasing activities and rentals. strengthen the synergy among our businesses, to We have seen good take-up provide holistic solutions for in Ocean Financial Centre, sustainable urbanisation. and Phase 1 of Marina Bay Financial Centre is effectively fully leased. The Chinese government’s cooling measures have injected some stability and rationality into the property market and we see this as a positive move. Sales in our Chengdu and Wuxi townships have remained healthy, reflecting a real demand for homes by the growing urban middle class.

The Sino-Singapore Tianjin Eco-City project is progressing steadily. Our joint venture company has attracted developers and other partners to the project with total investment commitments of almost By marrying core competencies in environmental engineering, property and township development, amongst others, Keppel aims to be a RMB 43 billion. The first provider of choice for solutions to sustainable environment and urban living

Keppelite I July 2010 10 Sustaining Growth

Synergising strengths As Keppel continues to leverage competitive capabilities across business units, the Group is focused on being the preferred solutions partner to customers. Excerpts of Senior ED and Group Finance Director Mr Teo Soon Hoe remarks at the 1H 2010 results announcement are reproduced here.

Senior ED and Group Finance Director Mr Teo Soon Hoe announced record earnings for 1H 2010 and an increased interim dividend of 16 cents per share

FREE CASH FLOW Australia by K-REIT Asia, the industry report, non-OECD made by Offshore & Marine For the half year, net development costs of Marina countries will be the primary in the second quarter of this cash generated from Bay Financial Centre and driver of demand for energy. year add strongly to the operations was $948 million, Ocean Financial Centre, Division’s track record of $180 million higher than the and operational capital Energy demand from non- quality, safe and on-schedule same period last year. After expenditure of Offshore & OECD countries is forecasted execution. Although new taking into account negative Marine Division. to nearly double the 2005 contracts secured to date working capital changes level by year 2030. was modest, we continue mainly for expenditure on The total free cash outflow to see a healthy level of the outstanding orders of of around $860 million, as Such growth will translate enquiries. Offshore & Marine and well as dividend payment of into continued investment in our residential property $470 million for the first half rigs and drilling equipment, In the second quarter, the development, net cash used year of 2010, resulted in a as well as greater motivation Division worked hard to put in operating activities was net debt of $115 million, or for energy efficiency. With together a number of bids $443 million. a net gearing of 1%. our operational excellence for the tender of Petrobras’ and global footprint, we are rig building programme. Cash outflow from investing BUSINESS REVIEW & confident of meeting this activities of $416 million OUTLOOK growing market demand in Infrastructure was principally due to the long run. We remain a major the acquisition of a Offshore & Marine unitholder of K-Green Trust commercial building in According to a recent The successful deliveries (KGT) after the listing, and

Keppelite I July 2010 Sustaining Growth 11

have the dual responsibility flexibility for future Securus Fund, the world’s improved business of safeguarding the interests acquisitions. first Shariah-compliant sentiments, Singapore’s of unitholders and managing data centre fund, obtained office rental rate saw its first the business conducted by In the area of business initial commitment of increase in six quarters. Our KGT. development, KIE is US$100 million from Asian Property Division is well entering the next phase of and Middle Eastern placed to benefit from the Keppel Integrated Memstill water technology institutional investors. We upturn with its prime Engineering intends to implementation with will utilise our experience in Grade A office projects. position KGT as its primary the design, construction, data centre management to This can be seen by the good platform for investing in and operation of a enhance the value of the pre-completion commitment developed “green” demonstration plant, and fund’s assets. levels achieved by Marina Bay infrastructure assets. Keppel DHCS has entered Financial Centre and Ocean into an agreement to provide Property Financial Centre. KGT will be able to capitalise services to Tianjin Eco-City’s We continued to see good on Keppel’s international Eco-Business Park. demand for homes in Over the next three years, network for growth Singapore, with firm selling these two commercial prospects. It can also We seek to capitalise on prices and volume. Despite developments will add some leverage Keppel Integrated rising demand in logistics the Chinese government’s 3.8 million sq ft of new office Engineering’s (KIE) outsourcing and green data property tightening space in the Raffles Place and environmental technology centres by focusing on measures, there is expected Marina Bay precincts. We are expertise to seek and selected markets. sustained demand for confident that they will evaluate opportunities. affordable housing. We sold achieve high occupancy rates Keppel Telecommunications more than 1,600 homes in due to their prime location. In addition, KIE’s strong & Transportation boosted its the first six months of this technical, operation and presence in Vietnam with year and will time our new The Division’s focus maintenance, as well as three new distribution launches to meet the on thematic residential engineering, procurement centres. With the new aspirations for home properties has served and construction capabilities centres, we are now able to ownership in our key the Group well. We can support KGT in the serve the urban and markets in the region. seek acquisitions and operation of its plants. The industrial regions in North developments that bring to Trust is currently debt-free and South Vietnam faster Reflecting a more upbeat which gives it the financial and better. economic outlook and Continues on page 12...

Over the years, Keppel has strived to improve its performance and reward shareholders with good dividends

Keppelite I July 2010 12 Sustaining Growth

...continued from page 11.

Reflections at Keppel Bay will offer its residents a world-class waterfront lifestyle coupled with environmentally friendly features when completed in 2013

our home buyers compelling the midst of a lakeside phase 1 of Keppel’s rising environmental and value offerings such as surrounding. residential project has sustainability awareness, as proximity to Mass Rapid commenced. Known as well as demand for energy, Transit (MRT) stations, On 19 July, K-REIT Asia Seasons Park, approximately logistics and data centres, lifestyle amenities and good announced its acquisition of 1,680 units are expected to will be the key demand investment potential. an office tower located in the be launched in phases within drivers for the Group’s heart of Sydney’s Central the second half of this year. products and solutions. Our successful bid of the site Business District. This is in line located next to the Lakeside with its strategy to improve GROUP OUTLOOK By building on our synergistic MRT station will further income diversification and We recognise the challenges competencies, the Group is enhance our portfolio of enhance its existing tenant in an uncertain global well-positioned to ride homes. We expect the base. environment. At Keppel, we through this volatile period to project to benefit from the continue to use our Group’s emerge as the preferred Urban Redevelopment Tianjin Eco-City is on track strengths to further grow our solutions provider to our

Authority’s plan to develop to become a model for businesses. customers. keppelite the district into a business sustainable development in and leisure destination set in China. Construction of Increasing urbanisation,

Keppelite I July 2010 Sustaining Growth 13

Cautious optimism Keppelite highlights questions and answers at the first half results briefing.

ON O&M MARGINS, but also Australia and only opened after all queries We expect less deferment PROSPECTS AND Indonesia. and issues have been dealt for inspections and surveys. PETROBRAS BIDS with. If everything goes Rig owners may use this CCB: The exceptionally high There are also enquiries for according to plan, we window period for margins in the first half were repair works. Although rig expect bidding results to be maintenance, repairs or driven by good project repair is a relatively local released within the next replacements, especially if execution, better costs business, owners may decide three weeks. their rigs and equipments management due to less to send their rigs to the most are idle or not up to outsourcing outside suitable yard for major repair ON GULF OF MEXICO standards. The more Singapore, and familiarity work. We get a fair share of MORATORIUM stringent environment will with repeat projects. work at our Singapore, CCB: The US government has possibly bring work to the Netherlands, US and Brazil tightened the rules on yards in the Gulf, of which There is a pipeline of many yards. The ship repair market deepwater drilling and we do we are one of them in oil and gas fields for remains resilient and there not expect a quick lifting of Brownsville, Texas. development and these plans have been news of ship the moratorium. However, as would require floating owners ordering container several states such as Texas, In the long-term, the full production facilities, a ships again. Overall, we are Louisiana, Alabama and impact will depend on the market segment which we cautiously optimistic. Mississippi have been specific rules rolled out and are a leading provider of. affected by the moratorium, state of affairs. We are not Enquiries for such facilities The bid process of Petrobras there is pressure on the totally pessimistic and will come from not only Brazil, is very transparent. Bids are US government to act. wait and see how things turn out.

ON INFRASTRUCTURE’S EARNINGS TSH: Unlike the previous half year, we did not recognise profit from the Doha North project this year. We are aiming to complete the Domestic Solid Waste project by this year end, but until then we will not be recognising profits for

these Qatar projects. keppelite

CCB – Mr Choo Chiau Beng, CEO of Keppel Corporation

TSH – Senior ED and Group Finance Director of Keppel

As the most comprehensive offshore and marine facility in Latin America, Keppel BrasFELS is in a strong position to meet Brazil’s requirements Corporation for greater local content

Keppelite I July 2010 14 Sustaining Growth

Stronger earnings for Keppel Land as property markets improved

Keppel Land achieved a net and Alpha Investment Sales programme for the Comprising about 630 units, profit of $134.7 million for Partners. second half of 2010. the project will also benefit the first half of 2010. This from the remaking of Jurong was 41.6% higher than the SINGAPORE CONTINUED Tapping on the demand Lake District. $95.1 million achieved in the TO PERFORM WELL for homes with good first half of 2009. The Singapore residential connectivity, Keppel Land Capitalising on the opening market continued to perform successfully acquired a of Marina Bay Sands Profit from overseas well while office rents have residential site at Lakeside integrated resort, Keppel operations increased 82.7% improved in the second Drive, next to the Lakeside Land held a second preview year-on-year to $49.5 million quarter of 2010, after six Mass Rapid Transit station. of the Marina Bay Suites and as a result of stronger quarters of decline. contribution from China, mainly from property About 8,500 new homes KEPPEL LAND GROUP trading. Earnings from were sold in the first half of overseas represented about 2010, more than 50% of the (S$’m) 1H 2010 1H 2009 % Change 36.8% of the Group’s net 14,688 units sold for the Turnover 361.6 395.6 (8.6) profit in first half of 2010, whole of 2009. To meet the compared with 28.4% in the strong demand for housing, Operating Profit 99.0 77.0 28.6 corresponding period last the Singapore government Pre-tax Profit 187.1 139.1 34.5 year. announced a total of Net Profit 134.7 95.1 41.7 27 residential sites and Net profit from property four mixed-use sites under EPS (cents) 9.4 8.2 14.6 trading grew 26.4% year-on- the Government Land year to $104.3 million in the first half of 2010, largely due to stronger earnings from Reflections and Caribbean at Keppel Bay in Singapore, as well as The Arcadia and Villa Riviera in China.

Net profit from property investment rose 37.6% to $27.1 million compared with the same period last year, largely due to higher share of profit from K-REIT Asia.

Net profit from fund management increased 78.4% to $15.7 million due to higher acquisition and management fees earned by K-REIT Asia Management Keppel Land CEO Mr Kevin Wong briefing media and analysts at the company’s results conference on 20 July 2010

Keppelite I July 2010 Sustaining Growth 15

to its recent acquisition of a 50% stake in 275 George Street in Brisbane, K-REIT Asia is acquiring an office tower at 77 King Street in Sydney’s CBD area.

Alpha Investment Partners has acquired 162 units of The Cascadia or about 30% of the prime residential development located along Bukit Timah Road under the Alpha Asia Macro Trends Fund. The Fund has also bought a 77% stake in Katong Mall in Singapore, which will be redeveloped into a new 207,000 sf retail and lifestyle mall. It is

Office leasing continued to improve in the first half of 2010 which benefitted Ocean Financial Centre, raising its pre-commitment level to 63% currently 32% pre-leased with premium tenants and is slated for completion in the sold about 40 units. Similarly, Banking Group Limited and was launched in June. Some third quarter of 2011. with the opening of Universal BNP Paribas have signed up 79 units of the 120 launched Studios at Resorts World 209,000 sf and 58,000 sf of units were sold as at end- The group will continue to Sentosa, Reflections at office space respectively. June 2010. monitor the markets for Keppel Bay achieved good appropriate launches and take-up with 77 units sold in Other pre-commitments In Vietnam, the take-up at strategic acquisitions. Riding the first half of 2010. came from companies Riviera Cove continued to on positive sentiments of the including Drew & Napier, remain steady with 93% of Singapore market, Keppel Office leasing continued to DMG & Partners Securities the 82 launched units sold. Land is planning to launch improve in the first half of and Verizon Communications, The take-up for Jakarta the newly acquired Lakeside 2010. Average Grade A rents which are existing tenants Garden City (JGC) in Drive project by end of the rose by 5.6% to $8.45 psf in of Ocean Towers. Ocean Indonesia was also strong year. the second quarter of 2010 Financial Centre was about with 124 units sold in the from $8 psf in the previous 63% committed as at end- first half of 2010. Overall, In China, the group will roll quarter, while average June 2010. 77% of the 648 launched out two blocks at 8 Park prime office rents rose 3% to units at JGC have been sold. Avenue in Shanghai, Seasons $6.90 psf from $6.70 psf IMPROVED SALES FROM Park in Tianjin Eco-City, over the same period. OVERSEAS RIDING ON The Seasons township in Keppel Land sold over 1,200 OPPORTUNITIES FOR Shenyang and Phase 3 of Marina Bay Financial Centre units in China in the first half GROWTH Serenity Cove in Tianjin, Phase 1 is now fully leased of 2010, mostly from The The group’s fund which are scheduled for and this brings overall Botanica in Chengdu and management vehicles launch in the second half of commitment for Marina Bay Central Park City in Wuxi. continued on its growth path 2010. The group also plans Financial Centre Phases 1 Tapping on the proximity to making more new strategic to launch Riviera Point in and 2 to about 80%. At the Pudong International acquisitions in Singapore Ho Chi Minh City, Vietnam, Ocean Financial Centre, Airport and upcoming and overseas in the second in the second half of the year.

Australia and New Zealand Disneyland, The Springdale quarter of the year. In addition keppelite

Keppelite I July 2010 16 Sustaining Growth

Strategic acquisition

K-REIT Asia Management in Sydney, Australia for refurbished in 2008, it has a acquisition is in line with announced on 19 July 2010 a purchase consideration total net lettable area of K-REIT Asia’s investment that it entered into a sale and of A$120 million or 170,662 sf across 18 levels strategy of acquiring quality purchase agreement with approximately $145 million. of Grade A office space and commercial buildings Kingvest Pty Limited to five levels of quality retail pan-Asia. In addition, it acquire 100% of the office 77 King Street is located in space and is in close demonstrates our ability to tower and part of the retail the heart of Sydney’s Central proximity to major CityRail acquire yield accretive and component at 77 King Street Business District. Completely Stations - Wynyard, Martin income-producing assets Place and Town Hall Stations. overseas that strengthen K-REIT Asia’s sterling Following the acquisition, portfolio.” K-REIT Asia will own the entire 18-level office tower or Ms Ng Hsueh Ling, CEO of approximately 130,394 sq ft K-REIT Asia Management, of office space, and added, “It is a rare 16,856 sq ft of retail space opportunity to be able to across the ground and acquire a prime asset that is two basement levels. The strategically located in the acquisition will be made on heart of Sydney. a fully leased basis with an income top up of up to “More importantly, as all the A$4 million for a maximum leases for this acquisition are period of six years. embedded with fixed annual rental escalations, the stable The weighted average and growing cash flows will lease expiry for the office contribute towards the component is approximately steady returns which K-REIT 5.8 years. Key office tenants Asia aims to provide to include consulting firm unitholders. The acquisition CapGemini Australia, rating will also improve income agency Fitch Australia, law diversification and enhance firm Herbert Geer and online K-REIT Asia’s current tenant travel company Expedia base.” Australia. The acquisition diversifies Leading sporting and leisure K-REIT Asia’s geographical equipment, apparel and risk, which is presently footwear retailer Rebel concentrated within Sports is the main tenant Singapore, and will be occupying the retail space funded by a combination of over two basement levels. debt and equity from the proceeds from the rights Professor Tsui Kai Chong, issue that was completed in

Chairman of K-REIT Asia November 2009. keppelite The acquisition of 77 King Street is expected to be completed in the fourth quarter of 2010 Management, said, “This

Keppelite I July 2010 Sustaining Growth 17

K-REIT Asia keeps on growth track

K-REIT Asia achieved a 2Q 2010 1H 2010 1H 2009 + / (-) distributable income of $’000 $’000 $’000 % $39.8 million for the first half of 2010, a 20% increase Property Income 23,230 41,440 30,142 37.5 from the same period a year Net Property Income 18,393 32,281 23,136 39.5 before. This was due mainly Total Return before Tax 13,590 24,532 13,308 84.3 to the higher net property income from the 29% Distributable Income to Unitholders 21,965 39,790 33,154 20.0 additional interest in Distribution Per Unit (cents) Prudential Tower and the For the Period 1.64 2.97* 2.49 19.3 50% interest in 275 George Annualised 6.58 5.99* 5.02 19.3 Street, which was newly * Restated taking into account the effect of the one-for-one rights issue and computed based on the issued units at the end of each period acquired at the beginning of aggregated with 666,703,965 rights units issued on 22 November 2009 March 2010. Net property income rose 39.5% year- on-year to $32.3 million in 1H 2010.

The Distribution Per Unit (DPU) for the second quarter and first half of 2010 were 1.64 cents and 2.97 cents respectively. The DPU for the second quarter was 23.3% higher than the 1.33 cents DPU in the first quarter of 2010.

The DPU for the first half of 2010 was 19.3% higher than the DPU achieved for the same period in 2009, which was restated to take into account the effects of Ms Ng Hsueh Ling, CEO of K-REIT Asia, and Ms Evelyn Tong, FC of K-REIT Asia, briefed media and analysts on the company’s performance for the rights issue. the first half of 2010

K-REIT Asia will distribute is received after 30 June buoyed by the sustained rate rose 2.1% to 97.6% as 2.97 cents per unit to 2010. economic recovery in the at the end of 2Q 2010 unitholders on 26 August region and the increase in compared with that at end 2010. This DPU is based on PORTFOLIO OPERATIONS leasing interest in Singapore. 1Q 2010, and is higher than 100% of its income available K-REIT Asia’s portfolio the core CBD occupancy for distribution for the six occupancy rate rose 1.9% Excluding the 50% interest rate. months from 1 January 2010 to 97.9% as at the end of in 275 George Street in to 30 June 2010, net of the 2Q 2010 compared with the Brisbane, the Singapore foreign-sourced income that rate at the end of 1Q 2010, property portfolio occupancy Continues on page 18...

Keppelite I July 2010 18 Sustaining Growth

...continued from page 17.

The portfolio weighted 2010 after completing a SELECTIVELY PURSUING on active asset management, average lease term to $230 million partial OPPORTUNITIES retaining existing good expiry remained a healthy repayment of a revolving K-REIT Asia with its tenants and attracting new 5.7 years as long lease terms term loan in April 2010. portfolio of well-located creditworthy corporations, extending five years or quality assets and diversified improving operational more account for 40.5% of With no immediate stable of blue-chip tenants is and capital efficiencies, the portfolio by net lettable financing needs until 2011 well-positioned to benefit and selectively pursuing area. and a $1 billion medium- from the strong economic opportunities for strategic term note programme growth in Singapore, positive acquisitions in order to CAPITAL MANAGEMENT established in 2009, K-REIT office sector and increased deliver stable and growing

K-REIT Asia maintains a Asia’s financial flexibility pace of white-collared returns to unitholders. keppelite healthy balance sheet with will enable it to capitalise employment. a low aggregate leverage on selective acquisition of 15.2% as at 30 June opportunities. K-REIT Asia remains focused

Keppel T&T seeks new opportunities

Keppel Telecommunications Operating profit improved operating profit and of the new distribution & Transportation (Keppel significantly due to better contributions from centre later in the year. T&T) group revenue declined operating margins. The associated companies. 11% to $52.7 million due group’s profit before tax In Vietnam, Keppel T&T will largely to the winding down and exceptional items of After taking into account leverage its strong branding of the network engineering $35.2 million improved 26% taxation and non-controlling and work with partners to business. as a result of improved interests, Keppel T&T’s explore new opportunities. attributable profit before exceptional items rose 17% With the launch of the to $26.5 million. Attributable group’s data centre fund in profit to shareholders after the second quarter of 2010, exceptional items increased the group will look to expand 31% as the corresponding its portfolio of data centre period in 2009 included assets through the fund. In impairment loss in value of addition, Keppel T&T will other investments and seek expansion opportunities provision for restructuring for data centres in Singapore cost. and overseas. The data centre in Ireland continues to PROSPECTS enjoy full occupancy. In China, the group’s port operations in Foshan are Keppel T&T continues to expected to continue to remain prudent in managing operate at maximum costs and improving capacity. Its footprint in the operational efficiency, Pearl River Delta will be while seeking growth Keppel T&T strengthened its North-South distribution network in Vietnam to meet the fast extended with the opening opportunities. keppelite growing logistical needs of customers in urban and industrial regions effectively

Keppelite I July 2010 Sustaining Growth 19

Leading developer

Keppel Land has further strengthened its sterling office portfolio with the topping-out of its latest development, Ocean Financial Centre.

Ms Grace Fu, Senior Minister of State for Ministry of National Development, marked the topping-out for Ocean Financial Centre at a ceremony held on 7 July 2010.

At the ceremony, Mr Choo Chiau Beng, CEO of Keppel Corporation and Chairman Ocean Financial Centre was topped-out at a special ceremony graced by (from left) Mr Teo Soon Hoe, Senior ED and Group Finance Director of of Keppel Land, announced Keppel Corporation, Dr Lee Boon Yang, Chairman of Keppel Corporation, Ms Grace Fu, Senior Minister of State for National Development, agreements with two key Mr Choo Chiau Beng, CEO of Keppel Corporation and Chairman of Keppel Land, and Mr Kevin Wong, Group CEO of Keppel Land financial corporations, Australia and New Zealand completion in the second development of Ocean When completed, it will be Banking Group and BNP quarter of 2011. Financial Centre is timely as one of the largest office Paribas Singapore, both of it coincides with Asia’s developments in Raffles which have plans to lease Mr Choo added, “The strong economic recovery.” Place providing about about 209,000 sq ft and pre-commitment levels 850,000 sq ft of column-free 58,000 sq ft of prime office reinforce the positive It is the first high-rise office Grade A office space with space at Ocean Financial sentiments in the office development in Singapore premium fittings and Centre respectively. market on the back of a to achieve the Platinum furnishings, as well as brighter economic outlook. Green Mark Award, the environmentally responsible They join a stellar line-up of Keppel Land, as a major highest Green Mark features. companies including Drew & landlord of prime Grade A accolade presented to an Napier, Stamford Law, The office developments in the environmentally friendly Ocean Financial Centre Executive Centre, Verizon Raffles Place and Marina Bay building by the Building and features eco-breakthroughs and DMG, many of which precincts, is well-poised to Construction Authority. such as the largest solar have been long-term tenants benefit from this upturn.” panel system for high-rise at the previous Ocean It is also the first high-rise buildings in Singapore, an Building and Ocean Towers, Ocean Financial Centre is the office development in energy efficient hybrid chilled which will soon be fourth generation building Southeast Asia to be water system and an redeveloped as part of Ocean to rise at the same site conferred the prestigious innovative paper recycling Financial Centre. following redevelopment, Platinum Level LEED-CS pre- system for all offices. These each time at the turning certification under the green features will allow With these latest tenants, point of Singapore’s Leadership in Energy and prospective tenants to enjoy Ocean Financial Centre economic growth. Environmental Design (LEED) benefits such as long-term is now about 63% Green Building Rating energy savings. keppelite pre-committed, ahead of its As Ms Fu shared, “The System.

Keppelite I July 2010 20 Sustaining Growth

On track to deliver latest Maersk FPSO

Keppel Shipyard is well on Mr Choo Chiau Beng, CEO track to complete the of Keppel Corporation and conversion of Maersk Chairman of Keppel Offshore Peregrino for long-time & Marine (Keppel O&M), customer Maersk FPSOs. The said, “More than a customer, vessel was named at Keppel Maersk is also one of our key Shipyard on 2 July 2010. partners in safety, who has contributed significantly to At the ceremony, Mr Nils S. our efforts in creating an Andersen, Group CEO of A.P. incident-free workplace for Moller – Maersk A/S (Maersk), all at Keppel Shipyard. said, “Tailoring the FPSO to meet the requirements of the “Leading up to the Peregrino field is a complex completion of Maersk undertaking. We have chosen Peregrino, our teams will Keppel Shipyard for this continue to work hard to massive project due to the ensure that no one gets hurt. skills and competencies of the With the efforts and Keppel yards. commitment of the Keppel and Maersk project teams, I “We are pleased to note the am confident that we will

capable leadership and deliver a fine FPSO that will Celebrating the naming of the FPSO Maersk Peregrino are Lady Sponsor, Mrs Eva Ruud competency of both the serve Statoil well throughout (centre), and the management of Keppel, Maersk and Statoil Maersk and Keppel teams, her deployment in Brazil.” resulting in the timely and safe conversion of our latest FPSO. The vessel is scheduled to This is a truly remarkable depart Keppel Shipyard in working relationship, which the third quarter this year, we hope to expand and build and expected to achieve upon in the future.” first oil in early 2011.

The job scope on Maersk The success of the project Peregrino involved the was also shared with the marine conversion of a wider community through a newbuild Very Large Crude donation of $50,000 by Carrier, installation and Keppel Shipyard, Maersk integration of topside FPSOs and Statoil to Gawad modules, work on the APL Kalinga, an international internal turret, fabrication charity organisation and installation of the flare committed to poverty tower, process pipe rack eradication through the and helideck, and upgrading building of holistic and

of the accommodation sustainable communities. Reaching out to the wider community, Keppel, Maersk and Statoil donated $50,000 to the quarters. keppelite Gawad Kalinga Hope Initiative

Keppelite I July 2010 Sustaining Growth 21

Strong debut by K-Green Trust

Launching the listing of KGT are (from left): Mr Tong Chong Heong, ED of Keppel Corporation and Chairman of KIE, Mr Choo Chiau Beng, CEO of Keppel Corporation, Mr Magnus Böcker, CEO of SGX, Mr Gan Seow Ann, Co-President of SGX, Mr Khor Poh Hwa, Chairman of KIFM, Mr Thomas Pang, CEO of KIFM, Mr Teo Soon Hoe, Senior ED and Group Finance Director of Keppel Corporation and Mr Michael Chia, Deputy Chairman and CEO of KIE

K-Green Trust (KGT), Keppel of the Trustee-Manager of predictable distributions to Mr Thomas Pang, CEO of Corporation’s “green” KGT, Keppel Infrastructure its Unitholders. KIFM, said, “With growing infrastructure business trust, Fund Management (KIFM), awareness in environmental made a strong debut when together with senior KGT’s initial portfolio issues worldwide, there is it commenced trading on the management of Keppel comprises the Senoko greater demand for ‘green’ Main Board of the Singapore Corporation and Keppel Waste-to-Energy (WTE) infrastructure assets. Exchange Securities Trading Integrated Engineering Plant, the Keppel Seghers Limited (SGX) on 29 June (KIE). Tuas WTE Plant and the “KGT is well-placed to 2010. Keppel Seghers Ulu Pandan capture these opportunities Other dignitaries who NEWater Plant. in the global drive towards Units of KGT began trading graced the event included sustainable development, at $1.17, which was higher Mr Magnus Böcker, CEO of With their capacities therefore offering investors than the listing price of SGX, and Mr Gan Seow Ann, combined, the Senoko WTE opportunities to participate $1.13, and rose as much as Co-President of SGX. Plant and the Keppel Seghers directly in this growing $1.33 with over eight million Tuas WTE Plant treat close market segment.” shares traded on its first As Singapore’s first “green” to half of Singapore’s day of listing. The strong infrastructure business trust, incinerable waste, while the “KGT, drawing on its showing was an indication of KGT’s investment objective is Keppel Seghers NEWater Sponsor KIE’s expertise, investors’ keen interest and to invest in environmentally Plant is one of Singapore’s international reach and belief in the Trust’s “green” sustainable infrastructure largest NEWater Plant. All business networks, is well- infrastructure assets and assets in Singapore and three plants are being positioned to source for their long-term prospects. globally with a focus on operated and maintained acquisition opportunities.”

Asia, Europe and the Middle by KIE’s environmental keppelite KGT was officially launched by East. KGT aims to provide engineering arm, Keppel Mr Khor Poh Hwa, Chairman long-term, regular and Seghers.

Keppelite I July 2010 22 Sustaining Growth

Making every delivery count

Whether it is a newbuild or This time round, Ocean fresh water system at Angola, was handed over to repair work, Keppel Offshore Alliance arrived on 18 March the yard to ensure that the its owner, Smit Shipping & Marine (Keppel O&M) is this year in BrasFELS, Keppel water pressure of the Singapore. committed to ensuring that FELS Brasil’s yard in Angra hydro machines remained projects undertaken are Dos Reis, Brazil, for painting, high for the hydro blasting. All three vessels are always delivered to demolitions and steel and Good teamwork and equipped with Azimuth customers’ satisfaction. piping renewals. experience enabled us to thrusters to enhance complete this project strength and stability in SUCCESSFUL ALLIANCE Project Manager from successfully.” their towing capability to Working hand in hand with BrasFELS, Airton Rodrigues, better serve offshore Diamond Offshore, Keppel said, “Given the size of this SPECIALISED PARTNER structures. FELS Brasil successfully vessel, one of our main On a different continent in completed the repair challenges was constructing China, Keppel Nantong Mr Lee Tai Kwee, President and maintenance of the scaffolding, hydro- Shipyard delivered three of Keppel Nantong Shipyard, semisubmersible drilling rig, blasting and painting all newbuild vessels to their said, “While the successful Ocean Alliance, on 26 June the external areas of respective satisfied owners deliveries of these vessels 2010 safely, on time and the rig within the time in a similar on-time and reinforce Keppel Nantong’s within budget. frame given. within-budget fashion. ability and commitment to provide value-added services The excellent partnership “To improve efficiency Two 45-tonne bollard pull for our clientele, they also between Diamond Offshore and prevent unpredictable twin-screw ASD tugboats, reassure our customers and Keppel FELS Brasil was water supply due to the KST Salvo and KST Stallion, that we are capable of one which took roots when region’s climatic conditions, were delivered to Keppel meeting their basic Ocean Alliance first came to we used a water barge as a Smit Towage, while a requirements in delivering BrasFELS in 2005 for general reservoir and a centrifugal 90-tonne bollard pull a job on time, safely and

repairs. pump integrated with the offshore support tug, Smit within budget.” keppelite

Keppel O&M is committed to ensure that all rigs and vessels alike are delivered on time and within budget

Keppelite I July 2010 Sustaining Growth 23

Meeting of minds in Shanghai

With promising growth in Asia driven by urbanisation and rising home ownership aspirations, there is a need to constantly review our strategy to keep abreast of the market.

Reinforcing this message in his speech was Mr Choo Chiau Beng, CEO of Keppel Corporation and Chairman of Keppel Land at the offsite strategy meeting for Keppel Land. Held from 22 to 23 June 2010, the conference was attended by directors and senior management of Keppel Land, as well as from Keppel Corporation.

The meeting reviewed the company’s operations in Singapore and overseas, as Sharpening focus on the China market – Keppelites at the China Pavilion in the Shanghai World Expo well as how Keppel Land can further establish and leverage its competitive strength to remain the Positive response to The Springdale preferred developer of choice for home owners Keppel Land launched its mini golf, basketball and which is also known as and tenants. latest residential project, body painting provided China’s premier financial The Springdale, to positive hours of fun and interaction and shipping centre. At Whilst having an eye on response over the last for the whole family. press time, about 79 of future trends, Mr Choo also weekend of June. About 120 launched units have reiterated the need to look 500 guests turned up at Upon its expected been sold. into developing talents and the show gallery for the completion in 2015, building the next generation official launch of the The Springdale will comprise Adding to the of leaders. 26.4-ha development in 2,667 units of maisonettes, attractiveness of its Pudong District, Shanghai. high rise and landed homes location is a new Disney The conference included complemented by full-facility theme park which is visits to Keppel Land’s In conjunction with the clubhouses and retail outlets. expected to open by 2015 residential developments in World Expo, a “Singapore and only a 15-minute drive Shanghai, 8 Park Avenue and Experience” themed It is well-positioned to tap from The Springdale. The Springdale, as well as a carnival was held and on the growing housing tour of the Shanghai World various activities such as demand in Pudong District, Expo 2010. keppelite

Keppelite I July 2010 24 Special Focus

Offering sustainable solutions and development

Mr Teo Chee Hean, Singapore’s Deputy Prime Minister and Minister for Defence (extreme right), was briefed on the Group’s portfolio of projects in environmental engineering and sustainable development by Dr Lee Boon Yang, Chairman of Keppel Corporation (second from right), as Environment Minister Yaacob Ibrahim (extreme left) and Minister for National Development & Leader of the House Mr Mah Bow Tan (second from left) looked on

In the 1800s, only 2% of the shelter, water, food and basic level of interest shown at this strong support came from world’s population lived in services. year’s forums is a reflection the global community, which urban areas. That figure then of their relevance. included key international rose to 30% in the 1950s. These alarming statistics organisations, governmental Today, more than half of are why the Singapore SINGAPORE agencies, industry players, the world’s population or International Water Week INTERNATIONAL WATER and the research and 3.3 billion people live in urban (SIWW) and World Cities WEEK consultancy sectors. areas with approximately Summit (WCS), held Demonstrating the event’s 180,000 people joining this concurrently from 28 June to growing global appeal and One of SIWW’s proud number daily. However, it is 2 July 2010, are timely and significance, SIWW 2010 founding sponsors, Keppel estimated that currently over fitting platforms to discuss saw a record increase in trade Corporation took the 750 million urban dwellers the urgent challenges of attendees to over 14,000 opportunity to showcase the are living without adequate rapid urbanisation. The high from 85 countries. The water capabilities of Keppel

Keppelite I July 2010 25

Integrated Engineering (KIE) There is an urgent need Awarded by the Urban tremendous setbacks such at the trade show. Taking to hand over to the Redevelopment Authority as a post-industrial crisis, centrestage was Memstill, a next generation a more and the Centre for Liveable natural disasters and mass new technology that is being developed, yet greener and Cities, the Prize seeks to urbanisation, the city further developed by cleaner world. recognise individuals managed to successfully the Keppel Environmental and organisations that become the thriving cultural Technology Centre to At the WCS exhibition, KIE have made outstanding and economic hub it is now. produce desalinated water and Keppel Land exhibited contributions to the creation using waste heat and their strengths and expertise of vibrant and liveable Upon receiving the Prize, membrane-based distillation in their respective communities around the Dr Azkuna, shared, “During (read more about Memstill competencies. KIE displayed world. the 1980s global crisis, on page 28). information on innovative industrial cities ailed from engineering solutions The gala dinner celebrated aging infrastructure, failure Despite the uncertain global through its water and waste- and recognised the visionary to adapt to new economic recovery, water to-energy technologies for men and women of the technologies, rising oil prices remains a key focus area for municipal and industrial Bilbao City Council. and competition from governments and industries clients. Singapore’s Minister Mentor emerging economies. It was as cities around the world Lee Kuan Yew presented a time of decay. Hence, the continue to grow at an Keppel Land in turn Mayor of Bilbao, Dr Inaki Basque and Bilbaoan unprecedented rate with showcased its Azkuna, with an award governments had to reinvent rapid urbanisation. Many masterplanning experience certificate, a gold medallion the city, search for new countries continue to seek by featuring various regional worth $50,000 and a development and adapt to clean and affordable urban township projects $300,000 cheque, fully new times.” solutions to meet their including Jakarta Garden City sponsored by Keppel respective needs, using the (Indonesia), South Rac Chiec Corporation. And with that vision for Water Week as a platform for waterfront township reinvention, from the decay learning, exchanging ideas (Vietnam), Central Park City The northern Spanish city came the beautiful and iconic and networking. (China) and the Sino- was commended for Guggenheim Museum, the Singapore Tianjin Eco-City collective efforts by the local metropolitan railway, and WORLD CITIES SUMMIT (China). These townships, government and people to other urban projects that By 2050, more than 70% of some still in the construction transform the city into a now serve as inspiration for the world’s population will be stage, not only create vibrant metropolis. Despite other cities. keppelite living in urban areas, with the environments in which to live number of city dwellers and play, but also integrate expected to double from residential developments 3.3 billion today to with commercial and retail 6.4 billion. In light of the components. increasing urbanisation trend, WCS 2010 saw a LEE KUAN YEW WORLD global gathering of CITY PRIZE thousands, including world Apart from providing a leaders, multi-disciplinary platform for world and experts and policymakers. industry leaders to discuss and exchange ideas on Today, as cities brace for urbanisation and its swift urban expansion, challenges, the WCS also they face the challenge of held the presentation of the doing so in a way that is inaugural Lee Kuan Yew not only strategic but also World City Prize at a gala (From left to right) Minister Mentor Lee congratulating Mayor of Bilbao, Dr Inaki Azkuna, environmentally sustainable. dinner on 29 June 2010. for winning the inaugural Lee Kuan Yew World City Prize

Keppelite I July 2010 26 Special Focus

Waste and water solutions provider

At the opening the Keppel Seghers Tuas WTE Plant are Mr Teo Chee Hean, Deputy Prime Minister and Minister for Defence (third from right), Dr Yaacob Ibrahim, Minister for the Environment and Water Resources (third from left), Dr Lee Boon Yang, Chairman of Keppel Corporation (second from right), Mr Choo Chiau Beng, CEO of Keppel Corporation (second from left), Mr Tong Chong Heong, ED of Keppel Corporation and Chairman of KIE (extreme right), and Mr Michael Chia, Deputy Chairman and CEO of KIE (extreme left)

Forming part of the exciting Plant has the capacity to treat incorporating its combustion Deputy Prime Minister Teo series of events under the 800 tonnes of solid waste a grate and flue gas cleaning said, “The opening of the World Cities Summit’s day to generate more than proprietary technologies. Keppel Seghers Tuas WTE programme, Keppel 20 MW of green energy. Keppel Seghers will also Plant underscores the Integrated Engineering (KIE) operate and maintain the government’s efforts to officially opened Singapore’s It is also the first WTE plant plant for 25 years under a continue efficient waste newest Waste-to-Energy in Singapore to be contract awarded by the management. It also marks (WTE) plant, the Keppel built under the National NEA. another significant milestone Seghers Tuas WTE Plant, on Environment Agency’s (NEA) in our efforts to promote 30 June 2010. Public-Private Partnership Together with the Senoko private sector participation in (PPP) initiative, which aims to WTE Plant, which Keppel the waste disposal industry, Deputy Prime Minister and bring together resources, Seghers operates as well, as well as to build up Minister for Defence Mr Teo skills and experiences of Keppel will treat close to half environmental engineering Chee Hean officiated the the public and private of Singapore’s incinerable expertise in the private opening of the Plant. Other sectors. The PPP initiative is waste. sector.” dignitaries present included also part of the Singapore Minister for the Environment government’s move to The use of incineration as a NEW MILESTONE IN and Water Resources open up the WTE key strategy in Singapore’s WATER SOLUTIONS (MEWR) Dr Yaacob Ibrahim. incineration industry to the waste management system During the opening private sector. helps ensure that only 2% of ceremony, Mr Michael Chia, As the first incineration the waste produced by its Deputy Chairman and CEO plant in Singapore to The environmental population goes to the of KIE, announced plans for showcase WTE technology engineering arm of KIE, landfill, hence prolonging its a new project this year, also from a local company, the Keppel Seghers, designed lifespan on the land-scarce conducted in collaboration Keppel Seghers Tuas WTE and built the WTE plant, island-state. with the public sector.

Keppelite I July 2010 27

Mr Teo Chee Hean, Deputy Prime Minister and Minister for Defence, touring the Keppel Seghers Tuas WTE Plant with Keppel’s management

Did you know? Here are some facts and figures on the Keppel Seghers Tuas WTE Plant:

• Built on only 1.6 hectares (about three football fields), • Can handle waste disposed by almost 1 million people it is one of the most compact WTE plants in the world per day, based on 0.84 kg per capita* • Combustion temperature in the furnace can reach as • About 15 to 20% of energy produced is used in the high as 1,000°C Plant’s daily operations, with the rest contributing to • Equipped with magnetic separators, ferrous metals can Singapore’s electricity supply be separated from the incineration bottom ash and then • The combined capacities (58 MW) of the Keppel Seghers sent for recycling Tuas WTE Plant and Senoko WTE Plant can serve about • Both boilers in the Plant are able to produce 54 tonnes 100,000 Singaporean households staying in four-room of steam per hour (equivalent to 54,000 litres of water), flats, based on average electricity consumption of which is used to drive a turbo-generator to produce 381 kWh per month* electricity • For every 15 bags of trash sent to the Plant, only one *Source: 2009 estimates from NEA website bag will be sent to the landfill after incineration

Continues on page 28...

Keppelite I July 2010 28 Special Focus

...continued from page 27.

What makes Memstill efficient?

Memstill is a new • Tap into Waste Heat environmentally friendly and Renewable Energy technology that produces Can be powered on low desalinated water using grade waste heat or use waste heat and renewable energy sources membrane-based like solar energy and distillation. The technology geothermal energy can be used in industrial sectors that produce a • Space-Saving Design significant quantity of Very compact footprint waste heat. These include compared to traditional petroleum refining, desalination plants chemical plants, paper processing, thermal power • More Ecologically generation, waste Friendly incineration, and food and As Memstill is operated beverage processing. at lower freshwater recoveries, concentration of • Energy-Efficient the processed brine Very high recovery of will not be significantly evaporation heat can be different from seawater, and achieved, dramatically hence can be discharged reducing energy required into the sea with minimal for desalination environmental impact

Built on only 1.6 hectares, the Keppel Seghers WTE Plant is one of the most compact WTE plants in the world

“Our commitment to being Researched and further a significant and long-term developed by the Keppel partner with the MEWR Environmental Technology and its statutory boards Centre, a centre set up in extends beyond waste 2007 to initiate, manage management,” said Mr Chia. and conduct research and development with KIE, it “With the support of the will be the first time the Public Utilities Board and breakthrough technology Economic Development is tested at the Board, we will be taking a big demonstration scale level. stride in our water solutions When completed, the with the construction of a demonstration plant will Memstill demonstration have a daily freshwater plant on Jurong Island during production capacity of

the fourth quarter this year.” 100 cubic metres. keppelite

Keppelite I July 2010 Sustaining Growth 29

New mall takes shape at Katong The lifestyle hub is owned by investors including Alpha Investment Partners.

Bigger and better – that is of about 200,000 residents. The mall will reflect the Michelin-star Taiwanese the promise of the new It enjoys two main frontages Peranakan culture that Din Tai Fung restaurant. Peranakan-themed lifestyle along East Coast Road and surrounds the mall in its mall that will soon take the Joo Chiat Road, as well as design and integrate itself Mr Pua Seck Guan, CEO of place of former Katong Mall excellent connectivity to seamlessly with the Perennial Real Estate, said, in the eastern side of the East Coast Parkway and architecture around the “We are extremely pleased Singapore. Pan Island Expressways. area. with the strong leasing interest of over 32% in The new mall is owned by “With such favourable Its anchor tenants include this new lifestyle mall. The Perennial Katong Retail Trust, attributes, there is no doubt Golden Village which will revitalised mall will stand whose investors include that this mall is well-poised see eight new multiplexes out in the district with its majority stakeholder Alpha to become a major shopping serving movie-goers. remarkably refreshing Investment Partners (Alpha), destination. We are Shoppers will also enjoy the architecture, good asset which is a wholly-owned real confident that the mall will extensive array of products plan, host of unique estate fund management perform very well for both its at Market Place, a premium offerings and enlarged car arm of Keppel Land, and the tenants and shareholders.” gourmet supermarket parking facilities. We are on BreakTalk Group. The new operated by Cold Storage. track to create a stylish and mall will be managed by With six levels of retail, Food enthusiasts can savour niche destination which will Perennial (Singapore) Retail lifestyle and gourmet shops, a variety of cuisines from change the retail landscape Management. the 207,000 sq ft mall will popular hawker fares at the in the Katong, Marine Parade be 20% larger than before Food Republic to exquisite and Joo Chiat precincts.”

At the groundbreaking when completed in 3Q 2011. Chinese dishes at the keppelite ceremony on 9 July 2010, Mr Loh Chin Hua, MD of Alpha, said, “Many of us have fond memories of the former Katong Mall which has become a household name and a familiar presence in the neighbourhood through the years. We hope to build on the goodwill and improve the experience for our retail customers as we redevelop the mall into a more vibrant hub with an exciting and desirable tenant mix.

“The mall could not be more strategically located, serving the community in this popular and established residential precinct with a total catchment population The new mall will stand out with its distinctive and modern Peranakan-themed design

Keppelite I July 2010 30 Sustaining Growth

Keppel hosts China delegates

From Tianjin in the north to opportunity to visit the FROM SICHUAN Singapore’s largest Guangdong in the south, Keppel Seghers Ulu Pandan On 28 June 2010, Dr Lee multinational companies visiting delegations from NEWater Plant on 1 July Boon Yang, Chairman of and Keppel Logistics China called on Keppel in the 2010 to understand the Keppel Corporation, (Foshan)’s standing as one of month of June to understand wastewater treatment welcomed Mr Huang the top international freight its key businesses and seek process. During the plant Xiaoxiang, Vice Governor forwarders in Guangdong insights into its showcase tour, the guests were briefed of Sichuan Province and Province, Foshan Daily, an projects. on how it meets the water his 14-men delegation at influential newspaper in that demand of the industrial and Keppel Corporation’s head city, visited the Group’s FROM TIANJIN commercial sectors in the office. Chairman was also various facilities in Singapore As one of the most attractive western and central regions joined by CEO Mr Choo from 22 to 23 June 2010. investment areas in China, of Singapore. Chiau Beng and Mr Teo. the Tianjin Binhai New Area Part of their itinerary (TBNA) has achieved In a recent interview with The delegation was briefed included a tour of Keppel tremendous growth over the Lianhe Zaobao, Mr Zong said, on Keppel’s key businesses Logistics’ warehousing past decade, witnessing “Many cities in developed and proceeded to engage premises, where they were double-digit growth rates. countries are currently facing Keppel senior management hosted by Mr Gui Eng Hwee, water shortage problems. in a robust discussion CEO of Keppel Logistics. Mr Zong Guoying, Head of Tianjin places a lot of on Sichuan’s future The Foshan Daily delegates TBNA, led a delegation to emphasis on this issue.” development plans, in also visited Reflections at Singapore recently to attend particular for its capital, Keppel Bay’s show gallery the World Cities Summit and Mr Teo Soon Hoe, Senior ED Chengdu, otherwise known and the Keppel Seghers Singapore International and Group Finance Director as the gateway to western Tuas Waste-to-Energy Plant Water Week (see Special of Keppel Corporation, and and central China. to understand Keppel’s Focus on page 24). senior representatives from businesses in property across the Group also hosted FROM GUANGDONG development and During their stay, the the delegation to dinner on Impressed by Keppel’s environmental engineering.

delegation took the 30 June 2010. reputation as one of keppelite

Mr Zong Guoying, Head of TBNA (second from right) and his delegation visited the Keppel Dr Lee Boon Yang, Chairman of Keppel Corporation (left), welcomed Mr Huang Xiaoxiang, Seghers Ulu Pandan NEWater Plant to understand the wastewater treatment process Vice Governor of Sichuan Province and his delegation at Keppel’s head office

Keppelite I July 2010 Sustaining Growth 31

The Singapore connection

On his trip to the US from 8 to 13 July 2010, Singapore’s Prime Minister Lee Hsien Loong visited Houston, where he spoke at a luncheon jointly organised by the Asia Society and the Greater Houston Partnership, as well as engaged in discussion with key leaders from the upstream energy and chemicals industries.

Prime Minister also met representatives of the local business community including Singaporean companies with an established presence in the Houston region, such as Keppel Offshore & Marine (From left) Mr Tan Geok Seng, President and CEO of Keppel AmFELS, Prime Minister Lee Hsien Loong and Mr Chow Yew Yuen, President (Keppel O&M). keppelite (The Americas), Keppel O&M USA

More progress at Tianjin Eco-City

Physical construction has a community centre, resident Animation Park, occupying a animation experiential started on the main services centre, fitness clubs land area of 330,000 sm, museum, which will organise commercial and retail street and an eco-square. comprises a research and activities such as film of the Start-Up Area (SUA) in development incubation screenings and exhibitions on the Sino-Singapore Tianjin A highlight of the Tianjin zone, smart products zone animation drawings and the Eco-City (Tianjin Eco-City). Eco-City is the National and the Park’s main building. process of animation work. Animation Park, which is The main building will house Occupying 3.24 hectares scheduled to be operational China’s largest and most The first phase of the with a gross floor area of in October this year. As at advanced animation services incubation zone will 60,000 sm, the SUA’s mid-July, the Park has already platform, offering technical comprise three buildings commercial and retail street attracted several high-end services such as rendering and with a gross floor area of will comprise a mix of enterprises, with around motion capture to companies 130,000 sm, offering Grade A office buildings, 40 companies signed on located in the Park. supporting services ranging mid- to high-end retail outlets to become its pioneers. from starting to operating an and service apartments. It will Also to be located in the animation company. keppelite also offer amenities such as The first phase of the National main building is a large

Keppelite I July 2010 32 Sustaining Growth

Stellar safety performance

Apart from its proprietary designs, Keppel FELS is also distinguished by strong project management and high safety standards in its service and product deliveries.

It was hence no surprise when Keppel FELS was recognised with a safety bonus award of US$1 million from repeat customer Stena Drilling for successfully completing a robust and meticulous maintenance and upgrade programme for its semisubmersible rig

Stena Clyde. Keppel FELS’s Project Manager Bryan Toh receives the bonus award from Seadrill’s Project Manager, Jerry Dokos

Mr John O. Banks, COO of Stena Drilling, commended, between Keppel FELS and “We are pleased to award Stena Drilling.” Keppel FELS a completion performance bonus of Keppel FELS also recently US$1 million for delivering received $10,000 on 25 June the work ahead of schedule, 2010 for achieving zero lost- and for the excellent time in some four million safety and operational man-hours worked during performance demonstrated the construction of two throughout Stena Clyde’s jackup drilling rigs for special periodic survey and Seadrill. upgrading programme.” “All of us at Keppel share the Mr Wong Kok Seng, ED of same strong determination Keppel FELS, shared, “Our to ensure that our projects ability to consistently add are completed without

value and deliver high anyone getting hurt. Being Strong teamwork and camaraderie enabled the teams from Stena Drilling and Keppel FELS to standards of safety and rewarded by Seadrill for return Stena Clyde to mint condition quality enables us to meet this safety milestone the needs of our customers achievement is very The two jackup rigs still KFELS semisubmersible and support them in encouraging. It will spur us undergoing construction are drilling tenders (SSDT) for fulfilling their commitments to keep up our good being built to the KFELS B Seadrill. Construction on the to their charterers. This efforts,” shared Keppel Class design. Keppel has seventh SSDT remains on

is the basis of the FELS’s Project Manager, previously constructed four schedule. keppelite longstanding relationship Bryan Toh. world-class jackups and six

Keppelite I July 2010 Sustaining Growth 33

People matters Keppelite updates on senior management appointments within the Keppel Group.

Dr Foo Kok Seng, 48, was appointed the new Centre Director of Keppel Offshore & Marine Technology Centre (KOMtech) with effect from 1 July 2010. His role involves overseeing KOMtech’s operations, spearheading research and development initiatives, as well as interfacing with clients and stakeholders. He will perform his duties as GM of Offshore Dr Foo Kok Seng Mr Nelson Yeo Mr Charles Foo Technology Development concurrently. 1 July 2010. He continues Also from Keppel O&M, Singmarine with effect from to hold his concurrent Mr Charles Foo, 69, 30 June 2010. He currently Mr Nelson Yeo, 53, has designations as MD (Marine) has relinquished his serves as Director/Advisor of assumed the position of of Keppel Offshore & Marine appointments as Centre KOMtech and Head of Chairman of Keppel (Keppel O&M) and MD of Director of KOMtech and Keppel Technology Advisory

Singmarine with effect from Keppel Shipyard. Chairman of Keppel Panel Secretariat. keppelite

Making a mark in green

For efforts in adopting James Ng Kuan Hwee, run the building as efficiently environmentally friendly Senior Manager of Business as possible.” practices, Keppel Bay Tower Operations, Keppel FMO, was accredited with the said, “The Green Mark Efforts were made since Green Mark Gold rating Award is an affirmation of 2006 to help existing office conferred by the Building Keppel FMO’s efforts to buildings under Keppel and Construction Authority value-add to our clients by FMO’s care meet the current (BCA) on 26 May 2010. helping them to be eco- Green Mark standards. friendly and achieve cost The assessment criteria Solely managed by Keppel savings in the process. comprises energy efficiency, FMO since 2005, this is the water efficiency, sustainable first commercial building the “Keppel FMO is determined operation and management, company has received the to continue striving for indoor environmental quality Green Mark Gold Award for. greener alternatives, and will and other green features. Accepting the Green Mark Gold award is keppelite Mr Sim Poh Heng (left), Assistant GM at Keppel FMO

Keppelite I July 2010 34 Sustaining Growth

Gold rush at the Marina

Marina at Keppel Bay recently became the first marina in Asia to be awarded the 5 Gold Anchors rating from the Marina Industries Association of Australia (MIAA) for top excellence in services and facilities.

The MIAA is the leading industry association for the marina industry across the Asia Pacific region. The association launched the Gold Anchor International Rating Scheme in 2009 which assigns ratings to marinas on a scale of three Endorsement of Marina excellence – (from left) Mr Andrew Chapman, President of MIAA, Mr Augustine Tan, CEO, Singapore Residential of Keppel Land and Mr Trevor Fong, GM of Marina at Keppel Bay with the 5 Gold Anchors flag to five gold anchors.

The 5 Gold Anchors rating He congratulated the Marina adds to an impressive list of for “setting the highest accolades and awards that standard for marinas”, and Kudos Marina at Keppel Bay has for setting the benchmark won despite having been once again for other marinas “We have been at the Marina at Keppel Bay with established for only less than in Asia by attaining the our two White Rabbit motor yachts since July 2008, three years. The Marina was highest certification under and we have seen the Marina progressively turn into named Best Asian Marina at the Gold Anchors scheme. a true world class facility, a great place for any yacht, the sixth annual Asian large or small, to call home. We wish to thank the Boating Awards in May 2010. Receiving the award on Marina’s staff for all their continuous efforts to keep behalf of Marina at Keppel these high standards, and for their great Can Do! spirit, In its debut year in 2008, the Bay, Mr Augustine Tan, CEO, without which this Marina would not be a success.” Marina was also awarded Singapore Residential of Best New Asian Marina/Yacht Keppel Land, said, “We are Captain Francois Voisin Club by the Christofle Asian happy to be the first in Boating Awards. In the Asia to be awarded this same year, it also became the certification, which will spur only marina in Asia to be us to work harder than ever Gold Anchor marinas are Not unlike the five-star rating awarded the Clean Marina to provide the best marina independently audited with system for hotels, the Gold certification by the MIAA. facilities in the region. The assessment across nine areas Anchors can be used as a certification also underscores including marina design, reference system by MIAA President, Mr Andrew our aim of delivering a true infrastructure, access, boaters and marina users to Chapman, presented Marina waterfront lifestyle at Keppel services, environmental determine which marinas in at Keppel Bay with the Bay for the enjoyment of our considerations, land facilities, the Asia Pacific region best 5 Gold Anchors award at a home owners and boaters in food and beverage facilities fit their requirements and

ceremony on 15 July 2010. Asia’s water playground.” and local attractions. needs. keppelite

Keppelite I July 2010 Sustaining Growth 35

Scoring a new high in safety

“Together, let us take The consistent strong safety ownership to the next support from all the level, and look out for one stakeholders shows in the another to achieve a results. Over the last few work-safe environment,” years, the yard has achieved said Mr Wong Kok Seng, good progress in its HSE Customised to Keppel’s needs, the Felt Leadership Training programme aims to nurture ED of Keppel FELS, at the performance. Its accident safety leaders closing ceremony of frequency rate has been Keppel FELS’s Healthy, Safety steadily decreasing, from and Environment (HSE) 0.19 in 2007 to 0.15 in 2008, Excellence Promotion and 0.09 in 2009. Equipping Campaign on 8 July 2010. Even so, Keppel FELS leaders The campaign, running for management makes sure the 14th consecutive year, is that its employees and part of the yard’s systematic business partners understand Over the past two months, Environment, Health and and continual efforts to that safety at the yard is not management and safety Safety (EHS) Manager at improve the safety of its just about winning bonuses personnel from across Keppel Integrated people, operations and or awards, or achieving Keppel Group have Engineering, shared, environment. better statistics. been attending Felt “Employees tend to emulate Leadership Training, a their superiors. As such, it is This year’s campaign once “Safety is about protecting safety programme. crucial that employees are again saw tremendous lives that matter to us – aware that safety is the top participation from staff, lives of our colleagues, our Conducted by consultant priority of those who lead contractors and customers in friends, and our neighbours company DuPont, the them and they can see their all the various activities such at work,” emphasised programme aims to further leaders actively applying as the safety innovation team Mr Wong. keppelite align the various business safety best practices.” presentations and poster units’ vision, principles and competitions. thrusts for safety, as well Elaborating on the contents as impart principles for on the programme, Mr Chan effective leadership in said, “The discussions and matters of safety. ideas introduced by the Felt Leadership Training To create a sustainable programme are useful. safety culture in A number of my fellow organisations, DuPont had participants have shared that stressed that those in they would like to implement leadership positions have their personal safety actions to make strong, visible plan – which they had commitment to safety and prepared as part of the lead by example. programme – as soon as possible to further improve One of the participants, safety in the workplace.”

Safety reaches greater heights at Keppel FELS backed by strong team effort Mr Chan Kim Yam, keppelite

Keppelite I July 2010 36 Sustaining Growth

Quality assurance

These new responsibilities department, said, “During had not come without the audit, I put what I had appropriate training. In a learnt into practice and newly launched Internal gained a better appreciation Auditors programme, the of the importance of having nine employees underwent a clear working Quality ISO 9001 training, which Assurance Procedure to teaches the framework for achieve a consistent quality taking a systematic approach product.” to managing an organisation’s processes. Mr Wong Fook Seng, GM (Planning and Control), Mr Wong Fook Seng (centre), GM of Planning and Control, Keppel FELS, with the newly The knowledge and newly Keppel FELS said, “I am minted Internal Auditors, and personnel from the Quality System and Process Excellence departments honed auditing skills were impressed by the high immediately put to good use standard of performance of While quality assurance further when they took in the last company-wide the new Internal Auditors, may be the responsibility on the new role as internal audit. considering that they are of all, nine young Quality System Internal undertaking the task for the

Keppelites from Keppel Auditor of their respective One of the nine Keppelites, first time.” keppelite FELS took that responsibility departments. Arina Tan from the Logistics

Showcasing Singapore’s skyline

As Singapore gears up to host Bay’s splendour. This 18 July 2010 at the Marina As developer of these two the inaugural Youth Olympic magnificent display will be Bay City Gallery, of which buildings that significantly Games (YOG), Keppel too will beamed across Singapore Marina Bay Financial Centre shape the Marina Bay skyline, be part of the momentous and the world through a and Ocean Financial Centre Keppel is proud to be able to event during the opening “live” feed of the event. are sponsors, that Marina support the YOG and to ceremony that will be held on Bay “will define Singapore showcase Singapore to the

14 August 2010 at the floating Singapore Prime Minister Lee the same way as the Bund world. keppelite platform at Marina Bay. Hsien Loong had noted on defines Shanghai.”

As all eyes zoom in on Singapore for the opening ceremony, Ocean Financial Centre and Marina Bay Financial Centre, along with other prominent buildings in the precinct, will switch on their lights simultaneously at

8.44 pm showcasing Marina Defining Singapore – the stunning Marina Bay skyline

Keppelite I July 2010 EmpoweringEmpowering Lives Lives 37

Voices from the heart

a ship repair manager before becoming a full-fledged naval architect. He was also sent on a six-month training stint to Japan to learn from the established shipyards.

His next overseas assignment was to start Keppel’s operations in the Philippines. Only in his late 20s then, through his four-year stint in the Philippines, Mr Choo became a pioneer of Keppel’s first successful overseas foray, and of a rigorous training ground on which many of Keppel’s would-be leaders were schooled.

Upon returning to Singapore in 1979, Mr Choo was assigned to be the ED of Far East Levingston, which is now the world’s leading Mr Choo Chiau Beng, CEO of Keppel Corporation, speaking to an audience of aspiring young graduands at their commencement ceremony designer and builder of offshore rigs, Keppel FELS. Successful business leaders Mr Choo said, “By now, you more knowledgeable and of today are often some of must have found something outstanding individuals,” “Don’t be afraid to try new the biggest romantics – they that you are really passionate he emphasised. things and venture from the are individuals who have about. This gives you a familiar. In pushing your found, pursued and lived out strong sense of purpose, and Mr Choo regaled the limits, you will learn a lot their passions tenaciously. it makes a huge difference audience with stories of how more about yourself and between doing well and he embarked on his life realise your full potential,” Many of these thought excelling. career with Keppel as a Mr Choo said. leaders have inspired young graduate from the younger generations with “You need to be honest with University of Newcastle upon The key to unleashing one’s their wealth of experiences yourself. Be observant and Tyne. “All this while, I had potential, Mr Choo shared, and successes in life. make the most out of your been eager to work in the is a life-long process of Mr Choo recently did that situation. Seize every maritime industry, and upon education, which must not when he shared his thoughts opportunity to learn and completing my Masters, I end with school. He urged, with an audience of aspiring stretch yourself. Be curious, joined Keppel Shipyard in “Never stop learning and young business graduands at open-minded, and willing 1971. I have not looked back growing, and striving to reach the National University of to learn from everyone since,” he said. for the stars, but while doing Singapore’s commencement you encounter. In doing so, always remember to stay ceremony on 8 July 2010. so, you can become Back then, he started out as rooted to the ground.” keppelite

Keppelite I July 2010 38 Empowering Lives

Providing platforms for growth

Warm welcome to the Group – Keppel Group Scholars (front row) with senior management

An important constituent of proud to say that we have two of many qualities the analogy, he emphasised the Keppel’s talent development been surrounded by good scholarship committee looks importance of team work as strategy, the Keppel Group people who have diligently out for. We seek individuals star performers can do very Scholarship has seen contributed to the growth who hold firm to their ethics little if they do not forge and generations of young and and success of the company. and values, and will keep work as a team. aspiring individuals joining their feet firmly planted on the Keppel family, bringing “The members of our family, the ground even as they scale Mr Choo then announced with them new ideas, drive whom we call Keppelites, great heights. the launch of a new initiative and unbridled spirit, since its share the Group’s vision, core called the Keppel Young initiation in 1989. values and drive for For it is the sum of these Leaders, which replaced the excellence. They exude qualities – aptitude, integrity, Keppel Scholars Alumni This year, Keppel’s league of passion, integrity, mettle and humility and a Can Do! Association with the aim to scholars saw a new addition the Can Do! spirit that attitude – that have enabled reach out to a wider group of nine dynamic youths from generations of Keppelites scores of Keppelites to drive of talents. various fields of studies, who have exemplified.” the Group’s growth in spread were warmly welcomed and scale.” Acting as a seedbed to during the Keppel Group Echoing Mr Choo’s nurture the Group’s high- Scholarship Awards sentiments on the core INAUGURATION OF THE potential employees, Keppel Ceremony held at the Civil values that Keppelites, new KEPPEL YOUNG LEADERS Young Leaders provides a Service College on 16 July and old, should have, During his speech, Mr Choo central platform to cultivate 2010. Professor Bernard Tan, also expounded on the global mindset, innovation Guest-of-Honour and Group’s beliefs in providing and entrepreneurship, Mr Choo Chiau Beng, CEO Chairman of the Scholarship the best to help people with amongst other attributes of Keppel Corporation, said, Selection Committee, talent achieve their full and skill sets. “A company is only as good shared, “A keen intellect and potential. Using the recent as its people. At Keppel, I am burning curiosity are but World Cup matches as an Members will be given

Keppelite I July 2010 Empowering Lives 39

opportunities to champion Planning) of Keppel Loon shared a presentation companies have been driven and participate in high- Corporation and Assistant on Professor Clayton out of the market. impact projects and cross- GM (Corporate Development) Christensen’s ‘Disruptive border assignments beyond of Keppel Offshore & Marine innovation and the impact of Judging from the robust their job routines. In as a speaker at the Keppel new technologies’. Using discussion that ensued, addition to the rich College Grow Beyond Talk. case studies and illustrations, it was apparent that exposure and learning He is also President of the he outlined the distinction the audience found this experiences, the young Keppel Young Leaders. between ‘sustaining installment of Grow Beyond leaders will also enjoy innovation’ and ‘disruptive Talk inspirational, as well as greater interaction with one Rejoining Keppel recently innovation’, citing the latter intellectually stimulating. another, advancing the after about seven years as a reason why some keppelite Group’s global synergy and of pursuing further studies formerly established collective strength. and other duties, Kuen Loon gave a lighthearted Mr Choo is the Patron of account of his journey as a Keppel Young Leaders. Keppelite – from his interview with the GROW BEYOND TALK Scholarship Selection Apart from the nine new Committee in 1994, to the faces of Keppel scholars, the day when he decided to event also featured a return to Keppel in 2010. returning Keppelite, Ho

Kuen Loon, Senior Manager In addition to the lessons and Keppel Young Leaders is an offshoot of Keppel’s talent and succession management (Corporate Development/ experiences he learnt, Kuen framework to develop a continuous stream of future leaders

Returning Keppelite Kuen Loon shares his career journey and the concept of disruptive innovation at the Grow Beyond Talk

Keppelite I July 2010 40 Empowering Lives

Great end to a grand adventure

A hero’s welcome for the crew of Uniquely Singapore Uniquely Singapore crossing the finish line at Hull and Humber, UK, after 35,000 nautical miles around the world

After an exciting 10-month calms, and extreme heat or the crew’s spirit as they Corporation, with Singapore adventure around the world, mind-numbing cold. quickly caught up with the Tourism Board coming Uniquely Singapore came in early pacesetters such as onboard as Team Partner. On overall sixth, its best ever The Race, which began on Spirit of Australia and Hull & the quay to greet the team result in the Clipper Round 13 September 2009, saw Humber. was Ms Wang Look Fung, the World Yacht Race. Uniquely Singapore crossing GM (Group Corporate five continents and visiting As the teams drew closer to Communications) of Keppel Arriving back in Hull at the 14 ports of different the finishing line, Uniquely Corporation. end of the Race on 17 July countries that include Brazil, Singapore and Qingdao 2010, after a full Singapore, China and the US. were neck-to-neck for Ms Wang said, “Along with circumnavigation, the sixth placing, with Spirit of many Singaporeans, I have Singapore team was greeted Helmed by Singapore-born Australia crossing the line been following Uniquely with a spectacular welcome Skipper Jim Dobie, the little first. Singapore’s performance by thousands of people who red boat Uniquely Singapore closely and am deeply lined the banks of the has proven its mettle, coming Disembarking the boat upon impressed with the Humber and the quayside of in first place in Race 10 from reaching the finishing line at teamwork and the all- Hull Marina. Jamaica to the Big Apple, Hull, an exhausted but elated inclusive mindset that the and third in Race 2 from Jim said, “We have a superb skipper and crew have Friends, families, supporters, Brazil to South Africa. team that bonded right from demonstrated in this Race, and even strangers the start of the race. Every which has seen its fair share welcomed the crew warmly The Singaporean entry got crew member, whether a of excitement across the with their cheers and off on a shaky start, suffering circumnavigator or race- oceans. applause, congratulating a broken halyard due to the legger, has displayed and them for the months they strong winds just as the embraced the Keppel Can “The Uniquely Singapore had spent in conquering the teams were on the starting Do! spirit from the starting crew and our Keppel world’s most formidable line in the seas surrounding line to the finish.” Ambassadors have flown oceans, which included Marina Seaport IJmuiden in our flag high with their experiences of enduring the Netherlands. This, The Uniquely Singapore display of courage, tenacity violent storms, frustrating however, did not dampen yacht is sponsored by Keppel and strong Can Do! spirit.

Keppelite I July 2010 Empowering Lives 41

As the sponsor of beyond their personal Clipper Round the World circumnavigation of the Uniquely Singapore, we limitations and pursue their Yacht Race, Sir Robin Knox- world. But the Clipper 09-10 hope their achievements and passions and dreams.” Johnston, said, “The crews crew got more adventures adventures will encourage expected adventure as than what they anticipated in more Singaporeans to grow Chairman and founder of the that comes with any the 35,000-mile voyage when they departed Hull last September.

“Although they underwent the toughest training there is for those sailing for the first time, it would have been inhuman if they had not felt some apprehension in taking on the Race. Having returned to Hull 10 months later, with stories that others can only envy, it would be an experience that will remain one of the high points of their lives.

“We at Clipper Ventures have worked with Keppel Corporation for three races now, and we have got to know each other well while Uniquely Singapore Can Do! Ms Wang Look Fung, GM of Keppel Group Corporate Communications (front row middle) with Singapore- working together to promote born Skipper Jim Dobie (front row left), Keppel Ambassador Adrian Tan (front row right) and the crew of Uniquely Singapore Keppel’s corporate objectives. We are looking forward to taking that cooperation to greater heights in the Clipper Figures to fathom 11-12 Race.”

This is the third consecutive If you have no idea of the – 18 is the average number three tonnes of pasta year that Singapore has scale of the adventure of crew onboard the yacht were consumed by fielded an entry in this race. undertaken by Uniquely at any one time the crew in the entire Singapore’s crew, here Keppel will continue to – 15 is the total number of race are some figures to put support the Uniquely races that Uniquely – 1.7 miles of toilet things in perspective. Singapore yacht in the Clipper Singapore had to paper and 30,000 11-12 Race, and to offer part compete in baby wipes were – Uniquely Singapore of the pre-race Clipper used up in total visited five continents – 28,000 tea bags, 84 tins Training for participants at and 14 ports during the of beef stew were used Keppel Bay Sailing Academy. Race in one six-week stretch at sea Similar to this year, the – 35,000 miles were international fleet of the travelled by the yacht in – 450 loaves of bread, Race will berth at Keppel Bay total 100 kg dried milk, and in 2012 as part of the

Singapore stopover. keppelite

Keppelite I July 2010 42 Empowering Lives

Cheer on the Keppel Contingent!

After over four months of rigorous training, the Keppel Contingent is all geared up for a smart performance at Singapore’s National Day Parade (NDP) 2010.

Come 9 August, members of the Keppel Contingent will show their love for the nation for its 45th birthday by marching over 10 kilometres, while bearing specially designed Keppel flags, from the F1 Pit Building into the Padang. The NDP is held at the Padang once every five years, making this year’s event a highly anticipated one. The Keppel Contingent will fly our flag high at the Padang

Leading the Keppel Contingent is Ivan Lim, Yard Manager of Keppel Shipyard (Gul). He enthused, “I am honoured to have this opportunity to be part of the parade segment. The camaraderie between contingent members and the sense of satisfaction that we get when we turn out sharp, precise marches is truly remarkable. I wish my fellow contingent members all the best at NDP 2010 and I look forward to marching Keppel management sharing words of encouragement with contingent members alongside them on this very joyous occasion with great keen to see Keppelites at (Group Human Resources) of Mr Tong, said, “The anticipation.” the NDP. Keppel Corporation, Mr Abu contingent members moving Bakar, Senior GM (Operations) as one cohesive unit is an Participants of the parade Mr Tong Chong Heong, ED at Keppel Shipyard, and inspiring sight. I urge all are not the only ones who of Keppel Corporation and Dr Lee Chay Hoon, GM of Keppelites to cheer for the eagerly await for the day CEO of Keppel Offshore & Organisational Development Keppel Contingent as they to arrive. Keppel senior Marine (Keppel O&M), of Keppel O&M, attended a prepare for the march into the management are just as Mr Chee Jin Kiong, Director training session in June. Padang on National Day.”

keppelite

Keppelite I July 2010 Empowering Lives 43

Football fever at the lodges

With millions of football fans to peek from behind pillars across the globe enraptured while others tiptoed to get by the 2010 World Cup a sliver of a view. Judging Season, it was no exception from the deafening cheers for the yard workers at Keppel that each goal brought, Offshore & Marine who comfort was the least of found themselves partaking their concerns. in the excitement by watching some of the matches “live” Mr Steven Lee, GM of from televisions installed in Keppel Housing, said, “We their canteens at Acacia, constantly seek to improve the Juniper and Lantana Lodges. quality of life for our workers. Installing the televisions at the Before every screened match lodges during World Cup began, benches in the provided entertainment for canteen were quick to be the workers after a hard day’s filled up by residents of the work. We believe that workers three lodges. As the crowd who live well, work well.” Hundreds of workers gathered at the canteen in Acacia Lodge to watch football matches during World Cup Season grew, some latecomers had keppelite

Crediting teamwork

Keppel Credit Union (KCU) Professor Bernard Tan, reported a solid rebound Chairman of KCU, attributed from a challenging global the organisation’s ability to economic environment deliver on its financial during its Annual General commitments to the Meeting (AGM) on 24 June teamwork and dedication 2010 at the Rock demonstrated by the Auditorium, Suntec City employees. Mall. Financial highlights Approaching the onset of include a gain from sales 2009 with caution, KCU of shares which increased had sought to enhance its 23% to $321,467, and a Professor Bernard Tan (right) presenting a KCU member with the first prize of the lucky dip, a financial position and 122% increase in net highlight at the AGM strengthen its balance income surplus to sheet. One area of focus was $500,375. With the stellar KCU members enjoy a variety addition, a total of 33 book cost management, whereby performance in 2009, of welfare benefits such as prize awards were given out greater discipline was KCU recommended a medical aid grant, subsidised to members’ children who applied so as to cut or reduce 10% dividend payout on eye health checks and group had done well in their discretionary expenses. share capital. term life insurance cover. In studies. keppelite

Keppelite I July 2010 44 Empowering Lives

Keppelites Abroad

Bridging differences

In the immediate aftermath A fact not commonly known essential growth engine for Currently, Keppel Land’s of the 2008 Sichuan is that Peter had to handle western China as it projects in Chengdu include earthquake in China, Peter the earthquake crisis just continues to benefit from The Botanica, a residential Lee, City Head of Keppel slightly over two months into the ‘Go-West’ policy township that will Land in Chengdu had to his posting to Chengdu in implemented by the provide about 9,400 homes work closely with his staff to March 2008. The affable government since 2000, and for the city’s growing middle- minimise work disruption Singaporean was not thrown a strong hinterland market income group and The amidst after-shocks on top of off his tracks, leveraging his for various products and Waterfront, a quality ensuring their safety. working experience in services. condominium development various Chinese cities and set in an established At Keppel Land’s Annual business contacts to remedy “With the recent neighbourhood near the International Conference this the task at hand. announcement by the city centre, well accepted year, Peter and his team municipal government to by the expatriate shared how they had been Reputed as Southwest China’s promote a low carbon community. able to get operations back science, business and finance economy for future on track in just five days after centre, as well as traffic and development, from building “One of the key differences the 8.0 Richter scale quake communications hub, Peter is an extensive MRT system, between the working culture despite enforced evacuation excited to be able to be part right down to encouraging in Singapore and China is from the main office of the growth of Chengdu the use of bicycles as means that we adopt a more premises. The team’s efforts over the past decade. of transportation by offering objective viewpoint and were recognised with the free rental to local residents, place the subject matter at Platinum Award at the “Chengdu is very vibrant Chengdu looks set to hand as priority, before conference for their display and has a strong upside in become one of the most taking into consideration the of the Can Do! spirit and terms of economic growth. liveable cities in China,” human factor. teamwork. It’s considered as an Peter enthused. “In China, the reverse is true. Emphasis is placed on empathy - people come first before the subject. Part of my role is to bridge the cultural differences and find common ground. I cannot force fit the Singapore working style when operating in China. I have to use it, package it, buffer it and implement it – all these come with experience and at the end of the day, the aim is to seek mutual benefit and

understanding.” keppelite Peter Lee (centre), City Head of Keppel Land in Chengdu, during a visit to one of the 2008 Sichuan quake-stricken areas

Keppelite I July 2010 Nurturing Communities 45

Jewel at Keppel Bay

The Jewel of Muscat arrived at Marina at Keppel Bay to a rousing welcome from Singapore

‘dhow’ was sewn together using coconut fibre and without a single nail, while the square sails were made of plaited palm leaves.

The Jewel of Muscat set sail from the Omani capital of Muscat on 16 February 2010 and retraced the old Maritime Silk Route, sailing across the vast Indian Ocean, Ex-Business Times journalist, Vincent Wee (fourth from right) with Mr George Yeo, Minister for Foreign Affairs (fifth from right) and senior management from Keppel and through the Straits of Malacca, before reaching her Bearing goodwill and transported back to an Said to Singapore to final home in Singapore. friendship from Oman, the ancient Arabian land as the symbolise the friendship and Jewel of Muscat sailed into Jewel, a reconstructed renewal of historical ties During the journey, the Singapore to a grand ‘dhow’, sailed into the between both countries. A 18-men crew had to brave reception at Marina at Marina to a warm welcome replica of a ninth century choppy seas, torrential rain Keppel Bay on 3 July 2010. by Singapore’s President Arabian ship, its design is and harsh wind conditions, Keppel is one of the main S R Nathan and Mr Sayyid based on a wreck found off while staying as true as sponsors of the Jewel of Harib Thuwainy Al-Said, Belitung Island in the Java they could to ancient sailing Muscat, as well as the venue representative of the Sultan Sea in 1998. methods. They even sponsor for the ceremony. of Oman. mimicked the lifestyle of Constructed using traditional ancient sailors, right down Spectators at Keppel Bay The Jewel of Muscat is a gift techniques and materials, to the type of food eaten. were momentarily from Omani Sultan Qaboos the 18-metre long wooden keppelite

Keppelite I July 2010 46 Nurturing Communities

Community ties

Celebrating racial harmony Guest-of-Honour Mr Choo and showcasing its newly Chiau Beng, CEO of Keppel refurbished facility, the Corporation, recounted Centre for Adults (CFA) Keppel’s partnership with organised a fundraising APSN for about a decade carnival at its premises on in his speech. “Since its 18 July 2010. inception in 2000, Keppel Volunteers has worked The CFA is an institute closely with APSN to under the auspices of the spearhead regular activities Association for Persons that encourage learning, as with Special Needs (APSN), well as the development of Keppel’s adopted charity. the beneficiaries’ social

skills.” keppelite Mr Choo toured the newly refurbished CFA facility, where trainees develop skills towards gaining open employment

Something to green about

For the green fingers at recognise and reward Society, commented, “What Canada, Russia and Singapore Caribbean at Keppel Bay, a excellence in gardening impressed us most was that came together to achieve the wonderful day is when the efforts by community people from all over the world perfect garden they hold in

skies are clear, the South groups in public and including Europe, the US, their hearts.” keppelite China Sea breeze is fresh private housing estates, and their flowerbeds are educational institutions and flourishing. Throw in an organisations. award that recognises the beauty of their community The community garden at garden and the quotient of Caribbean at Keppel Bay was a good day increases to one of 279 community perfect. gardens that had entered the competition. For their efforts The multi-cultural gardening in sprucing up the living community at Caribbean at environment for fellow Keppel Bay fielded an entry residents with their gardens, into the Community in the Caribbean at Keppel Bay Bloom garden competition participants received a Silver this year organised by the Award. That was something National Parks Board. for them to grin about.

The biennial Community in During the final round of Bloom Awards is a friendly evaluation, judge Mr John Tan

competition that serves to from the Singapore Gardening Community gardeners of Caribbean at Keppel Bay

Keppelite I July 2010 Nurturing Communities 47 vKeppelolunteers Living our dreams

The celebration of Singapore’s birthday is an event many look forward to, especially for the children from Association for Persons with Special Needs (APSN), Keppel’s adopted charity.

Attending the National Day Parade (NDP) Preview on 17 July 2010 with Keppel Volunteers, the children added their high spirits to an atmosphere already replete with excitement. Keppel Volunteers and students from APSN waving their clappers after a stirring preview of the NDP 2010 saw the return of the event to the Padang after event, stirring national pride “I really enjoyed the videos,” It was an eye-opening four years, this time newly and serving as a reminder of reminisced Chew Mei Yong, experience for Kelly Leung, transformed into a Singapore’s ideals. Executive Secretary at Keppel an intern from Group performance area to FELS. “They made me feel Corporate Communications accommodate an audience The audience was kept at very patriotic”. at Keppel Corporation. of over 26,000. the edge of their seats, “Being from Canada, I’ve starting from the aerial As night fell, the Padang never attended anything Keppel Volunteers and APSN formation by the popular was filled with the beautiful like this at home. It was children alike explored their Red Lions parachutists to sight of people waving their very enjoyable for me, as a souvenir bags with relish the traditional flypast of flag-shaped clappers, participant and an observer. and eagerly waved mini fighter jets performing which lit up to create an Singaporeans are truly proud Singapore flags as they impressive stunts. In enchanting atmosphere. of their country”. waited for the parade to addition, they had the The crowd was treated to begin. chance to view the mobile a show featuring singers Teh Ming Ching, an Engineer column – last seen in 2005 – and dancers, moving in at Keppel Singmarine, left Anchored by the theme showcasing state-of-the-art formation to create images feeling grateful for the Live Our Dreams, Fly Our military equipment. reflecting the five stars and opportunity to volunteer. Flag, the parade honoured the flag. “The experience I had Singapore’s history while also The parade featured showed me the motivation encouraging Singaporeans numerous videos, asking At the very end, the audience Keppel gives us – not only to to achieve their dreams for citizens questions about was on its feet clapping and do our best at work, but also an even greater future. The what dreams they had for singing along to National Day to contribute all we can”. inspiration behind this year’s themselves and for the songs in celebration whilst keppelite theme, the national flag took country, and what they love the stunning fireworks show special precedence at the about Singapore. took place.

Keppelite I July 2010 BackPage 48

Keppel secures $170 million Brazilian projects

Keppel Offshore & Marine “These latest contracts the flare tower, helideck, resulting in 13 high quality (Keppel O&M), through reinforce the strong spread-mooring system, as projects delivered since Keppel Shipyard and Keppel partnerships we have built, well as part of the topsides 2001. I look forward to FELS Brasil, has secured and attest to the versatility modules installation. continuing this partnership two contracts totaling and technological expertise, as we build up our FPSO $170 million from repeat which have enabled the Scheduled to leave Keppel fleet.” customers, Single Buoy company to undertake a Shipyard in the first quarter Moorings Inc (SBM) and variety of complex projects of 2012, the vessel will The second contract is by Queiroz Galvão Óleo e Gás seamlessly across its global head to Brazil where the Keppel FELS Brasil with (QGOG) for the conversion yards. I would like to thank installation and integration QGOG for the repair and of a Floating Production our long-time customers of topsides will be maintenance of their semi Storage and Offloading SBM and QGOG for their completed. The FPSO will drilling rig, Alaskan Star. The (FPSO) vessel and repair of a continued confidence in subsequently be chartered work scope, which includes semisubmersible (semi) Keppel as we fortify our to Petrobras Netherlands structural repairs, piping drilling rig respectively. offerings as the total for deployment in the works, accommodation solutions provider for the deepwater Tupi Nordeste outfitting and painting, is Mr Tong Chong Heong, CEO Brazilian market.” area located in Santos Basin, expected to be completed in of Keppel O&M, said, Brazil. October 2010. “Keppel has been providing The first contract is for the offshore and marine solutions conversion of the Very Large Mr Tony Mace, CEO of SBM Keppel FELS is presently to the Brazilian market for Crude Carrier, M/T Theseus, Offshore, said, “Our projects undertaking the construction more than 30 years. Together into an FPSO facility for SBM. with Keppel are progressing of QGOG’s second DSSTM 38 with our customers, we have Expected to commence in 3Q well and we are pleased unit, Alpha Star, having pushed the boundaries to 2010, Keppel Shipyard’s to award another FPSO delivered the first DSSTM 38 meet the unique challenges scope of work includes the conversion to them. We semi to QGOG in October

of Brazil’s offshore operating hull and marine conversion, have built a successful 2009. keppelite environment. fabrication and installation of partnership with Keppel

When completed, Alaskan Star will be chartered to Petrobras for deployment in the Campos The synergy between Keppel’s yards enables FPSO P-57 to undergo pre-conversion at Keppel Basin, Rio De Janeiro, offshore Brazil Shipyard in Singapore and have its topsides installation and integration conducted at Keppel’s BrasFELS yard in Brazil currently

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Keppelite I July 2010