Speech for Mr Tong Chong Heong at the Naming Ceremony of Fpso Four Vanguard at Keppel Shipyard

SPEECH BY MR TONG CHONG HEONG MANAGING DIRECTOR AND CHIEF OPERATING OFFICER OF KEPPEL OFFSHORE & MARINE LTD AT THE NAMING CEREMONY OF FPSO FOUR VANGUARD AT KEPPEL SHIPYARD (BENOI) ON SATURDAY, 8 FEBRUARY AT 10.30AM

Good morning

Our gracious Lady Sponsor, Mrs Marcelina Barraclough

Mr Michael Barraclough, Managing Director of Vanguard Floating Production

Limited

Mr Giorgio Biassoni, Fleet General Manager of Premuda

Distinguished Guests, Ladies and Gentlemen

A very warm welcome to the naming ceremony of FPSO Four Vanguard, and especially to our guests who have flown in from overseas to join us in this morning's celebrations.

Today, Keppel Shipyard is pleased to celebrate the successful delivery of

FPSO Four Vanguard. We are also excited to be a part of Vanguard and

Premuda's celebration of receiving their first FPSO vessel.

Eight months ago, Keppel Shipyard was entrusted with the conversion of this vessel. It came to us on the basis of Keppel Shipyard’s credentials as a leading FPSO and FSO conversion specialist. This speaks of the owner’s trust and confidence in us to meet their expectations for a quality vessel and at competitive prices that is delivered on time. Today, as we deliver this vessel, I am happy to announce that owners have reaffirmed Keppel Shipyard’s preferred shipyard status.

Thank you Mr Barraclough and Mr Biassoni for your confidence in Keppel

Shipyard. I look forward to more future projects. I also want to assure you that

Keppel Shipyard will continue to improve on the quality of our work and services for all your subsequent projects. In providing shipcare and conversion services, our vision is to work in close partnership with our clients to recommend innovative, cost effective and safe solutions.

We are committed to provide our customers with round-the-clock services every day of the year. Even on the Lunar New Year holidays, one of our most important festivals, we have almost 400 workers working diligently on Four

Vanguard. Mr Alcide Rosina, CEO of Premuda who was here at the yard witnessed our commitment to meeting the delivery requirements, on time and on budget.

Not only is customer service important to us. Safety being one of our core values, is also a top priority. We have implemented a yard-wide total safety programme that is aimed at making safety practices part and parcel of each and every work processes for all our people. I am happy to report that we have achieved successes in our efforts.

Keppel Shipyard’s Cumulative Accident Frequency Rate has improved by

32%, from 2.60 to 1.75 accidents per million man-hours of work during July to

December 2002. Our cumulative accident severity rate has also improved significantly by 43%, from 694 to 393 man-days lost per million man-hours of work. Finally, the housekeeping rating recorded a marked improvement.

To our customers, this is translated to less down time, more efficient work and lower cost.

On this note, I am delighted to announce that the conversion of the vessel has achieved one million incident free manhours. Certainly, such outstanding safety performance would not have been possible without the excellent dedication and commitment by the various project teams. At this point, I wish to congratulate the teams led by Lum Chee Kong from Keppel, Mr John

Trickey and Mr Charlie Ashwell from Vanguard and Mr Biassoni from

Premuda. All subcontractors, suppliers and ABS are also our partners in the successful completion of this project.

FPSO Four Vanguard will be operated by Vanguard Australian’s subsidiary company Vanguard Floating Production Australia and will work in the

Woollybutt field offshore Australia. I take this opportunity to wish Vanguard and Premuda every success.

Finally to all our distinguished guests, thank you very much for joining us in our celebrations today. I hope it will be as memorable for you as it is for us.

Thank you.