REPORT TO STAKEHOLDERS 2010

Building Strengths Defi ning Distinction Perfecting Execution Advancing Innovation Empowering People Our vision is to be the provider of choice and partner for solutions in the global offshore and marine industry.

Keppel Offshore & Marine is a global leader in offshore rig design, construction and repair, shiprepair and conversion, and specialised shipbuilding. We harness the synergy of 20 yards worldwide to be near our customers and their markets.

Contents 1 Key Figures 2010 2 Chairman’s Statement 6 Key Messages 12 Group Financial Highlights 14 Group at a Glance 16 Board of Directors 20 Key Personnel 34 Operations Review & Outlook 52 Technology & Innovation 58 Sustainability Report Sustaining Growth 60 – Productivity & Innovation 62 – HSE Excellence 68 – Business Continuity Empowering Lives 70 – People Cultivation Nurturing Communities 78 – Community Development 86 Global Network 92 Corporate Structure Key Figures 2010

Major Deliveries Investments in Productivity 35 $142m The number of major projects The amount of investments delivered safely, on time and to improve facilities within budget worldwide. and productivity in our yards worldwide.

Accident Frequency Rate Workforce Trained in Safety 0.29 8,322 The latest accident frequency The number of employees rate, down from 0.34 in 2009. and subcontractors who have been equipped at the Keppel Safety Training Centre as at end-December 2010.

Training Hours Energy Savings 74.6 $8.9m The average number of hours Estimated annual savings each employee spent in from energy conservation training during the year. efforts and initiatives in our Singapore yards.

Key Figures 2010 1 Chairman’s Statement

Economic Value Added “Continuous investments to improve $947m work efficiencies over the years An increase of have enabled us to reap substantial 18% over 2009. productivity gains and sustain our solid operational track record.”

DEAR STAKEHOLDERS, Against this backdrop, the Keppel 2010 showed tentative signs of Offshore & Marine (Keppel O&M) group improvement. While the recovery in the improved on its performance, securing US was chequered and Europe was still new contracts totalling $3.2 billion mired with fi scal problems, the Asian during the year. These included the economy was robust. P-61 Tension Leg Wellhead Platform project from Petrobras and Chevron, The offshore and marine industry and a series of jackup construction received some reprieve towards the and Floating Production Storage last quarter of the year with returning Offl oading (FPSO) conversion jobs from confi dence, stabilising freight rates various customers. At year end, our net and ship values, and improving orderbook amounted to $4.6 billion oil prices that have crossed US$100 with deliveries stretching into 2013. per barrel at the time of this report. SUSTAINING OPERATIONAL Notably, the year in review was marked EXCELLENCE by the worst offshore oil spill in history. Continuous investments to improve The Macondo well’s blowout in late work effi ciencies over the years April, the extensive period of rescue have enabled us to reap substantial work and a resulting ban on deepwater productivity gains and sustain our solid drilling activities in the Gulf of Mexico by operational track record. In 2010, the the US Administration overshadowed Keppel O&M group recorded revenues the industry for most of 2010. of $5.6 billion and a net profi t of $1 billion, as well as raised Economic Despite this setback, the industry has Value Added by 18% to $947.1 million. proven to be remarkably resilient. With the lifting of the drilling moratorium in We further entrenched our reputation October and greater clarity of the safety as the offshore and marine industry’s and regulatory implications from choice solutions partner with safe, the incident, market sentiments improved timely and on-budget deliveries. following a rebound in upstream capital Our Offshore Division delivered a total spending towards year-end. of 12 newbuild rigs, comprising seven

Keppel Offshore & Marine Ltd 2 Report to Stakeholders 2010 Chairman’s Statement 3 Chairman’s Statement

jackups and fi ve semisubmersibles, Meanwhile, several other pioneering for platform supply and offshore as well as executed eight major rig concepts that we have been support vessels in Brazil. repair and upgrading jobs with constructing came into fruition. Rowan sterling results. Our Marine and Viking, the fi rst KFELS N Class rig, was Over in the Philippines, we increased Specialised Shipbuilding Divisions successfully delivered to Rowan our effective stake in Subic Shipyard converted and upgraded fi ve major Companies. The KFELS N Class is one and Engineering from 44% to 83.9%. FPSO and fl oating storage regasifi cation of two rig designs in the market that can This strategic move will enhance the units, and delivered a record tally of fulfi l the exacting operating requirements synergy between our yards in Batangas 18 quality vessels. of the Norwegian sector of the North and Subic, and enable us to better Sea, with the dual-capability of drilling serve both the marine and offshore In enabling the group to attain and production. Rowan Viking has been markets there. higher productivity levels, strategic mobilised for a 19-month assignment in investments of $142 million were made the UK with Total. 2010 also saw the much-anticipated during the year to improve its global opening of Nakilat-Keppel Offshore & yard facilities and boost capabilities. We also delivered the fi rst North Sea Marine Ltd (N-KOM), Qatar’s world class These investments will position us accommodation rig to be built in over 43-ha shipyard facility in Ras Laffan strongly to capture opportunities 20 years to Floatel International 43 days Industrial City. This event was marked in the upturn, as we continue to ahead of schedule, safely and within by the signing of service arrangements respond to market changes and budget. The DSSTM 20NS Floatel with eight major fl eet owners operating deliver on our promises. Superior is a new-generation in the region. accommodation semisubmersible PUSHING NORTH WITH evolved from our proven DSSTM As a whole, these signifi cant INNOVATION Series of deepwater rigs jointly developments will allow us to harness Keppel O&M continued to push the designed and owned with Marine the synergies of our global network envelope for robust and sustainable Structure Consultants. The unit has to better serve our customers, as we solutions to support a wide variety of since completed a three-month charter explore new opportunities in markets offshore applications and fi eld for ConocoPhillips in Australia, and is such as West Africa, Mexico and China. conditions. In particular, the being prepared for work in Norway North Sea-compliant concepts that with Talisman Energy Norge AS in the MAKING SAFETY OUR BUSINESS we have been developing over the last Yme fi eld and Statoil Petroleum AS Safety is a Keppel core value and few years are gaining traction quickly in the Oseberg fi eld. we will spare no effort to develop a in the harsh environment market. pervasive culture with zero tolerance EXPANDING GLOBAL REACH for incidents. In 2010, Keppel O&M’s During the year, Keppel FELS Several important moves were made accident frequency rate was reduced to commercialised its new wind turbine in 2010 to bolster Keppel O&M’s 0.29 reportable cases for every million installation vessel concept with the Near Market, Near Customer strategy. man-hours worked, compared to Seafox Group for offshore wind We entrenched our presence in the 0.34 in 2009. During the year however, farms in the North Sea. The KFELS Caspian Sea and Brazil with the setting we had two fatalities, which raised the Multi-Purpose Self-Elevating Platform up of two new shipyards, and increased accident severity rate to 105 man-days (MPSEP) rises above the limitations of our stake in a facility in the Philippines. lost per million man-hours worked, from existing vessels in terms of functional 83 in 2009. We are deeply saddened water depth, carrying capacity, To be developed over three years, our by the tragic loss of lives, and these operational window and safety features. new 52-ha joint venture shipyard with accidents have spurred in us an the State Oil Company of Azerbaijan even stronger resolve to eradicate all The KFELS MPSEP is a product of Republic (SOCAR) and Azerbaijan potential workplace incidents. our jackup technology and years of Investment Company will fortify experience in constructing rigs for Keppel’s shipbuilding and repair Making strides forward, we launched the North Sea. This innovative rig capabilities in Baku and the Caspian the Keppel WSH 2018 Initiative to concept can also be used to support Sea region. We are also in the process align the Group’s safety efforts accommodation, well intervention, of modernising a newly acquired 7.6-ha with national goals, and to steer maintenance, construction, shipbuilding yard in Navegantes, Santa our collective efforts in creating decommissioning and a wide range Catarina, to complement our BrasFELS an incident-free workplace. The of other offshore oil & gas activities. yard, and to serve construction needs Keppel Safety Training Centre was

Keppel Offshore & Marine Ltd 4 Report to Stakeholders 2010 also opened to bring everyone in across production, engineering, on its promises well into the future. our workforce up to par on safety commercial and project management. We are constantly on the lookout for competencies and best practices. Many of them had also been seconded good opportunities to strategically overseas previously. acquire or co-invest with like-minded FORTIFYING OUR LEADERSHIP partners and customers to strengthen AND TALENTS In energising our workforce, we focus our core businesses and develop new As part of continual efforts by the on long-term skills training, mentorship, capabilities for the group. Keppel O&M Group to build up its career planning and job redesign. next generation of leaders, several key Keppel College provides leadership ACKNOWLEDGEMENTS appointments were made during the year. and people development programmes During the year, the Keppel O&M in partnership with various institutes Board was further strengthened by At headquarters, Sit Peng Sang was of higher learning such as the National the appointments of Mr Lim Chin Leong appointed as Executive Director of University of Singapore and the and Mr Loh Chin Hua. On behalf Keppel O&M and was succeeded by Nanyang Technological University. of the Board, I would like to extend a Wong Ngiam Jih as Chief Financial Through programmes offered by the warm welcome to our new directors, Offi cer. Meanwhile, Edmund Mah Keppel O&M Group Training Centre, and to thank Mr Charles Foo, who has was appointed as General Manager our workers and subcontractors too stepped down, for his long years of (Finance) of Keppel O&M and Chandru benefi t from opportunities to upgrade dedicated service and contribution to Rajwani as General Manager of Group themselves with industry-relevant the Keppel O&M group. Health, Safety and Environment (HSE). technical skills. Chandru, who succeeded Abu Bakar I would like to express my appreciation Bin Mohd Nor, also serves as Secretary PREPARING FOR THE FUTURE to our Board of Directors, valued to Keppel Corporation’s Board Safety The long-term fundamentals of customers, business associates, class, Committee (BSC) and Coordinator for the offshore and marine industry vendors, suppliers, contractors and the Keppel Group Safety. remain intact, underpinned by an union leaders in all our yards for their inevitable increase in energy demand continuous support and confi dence At Keppel FELS, Wong Kok Seng was from fast growing populations and in Keppel O&M. I would also like to appointed as Managing Director and economies, particularly in Asia-Pacifi c acknowledge the assistance and Aziz Merchant as Executive Director. and Latin America. support of all local, state and federal To drive the Group’s technology focus, authorities in the host countries where Foo Kok Seng was promoted to We are currently seeing an uptrend we are present. Executive Director of Offshore Technology in E&P budgets by oil majors as Development, and succeeded confi dence returns gradually to various Finally, the success that Keppel Charles Foo as Centre Director of sectors. However, the implications of O&M enjoys today is due to our loyal Keppel O&M Technology Centre. the Macondo incident are far-reaching employees whose passion, ingenuity At Keppel Shipyard, Chor How Jat was and are expected to further alter the and Can-Do! spirit have taken the appointed to the position of Executive regulatory and operating climate of group from strength to strength. Director, while Abu Bakar was the offshore and marine industry. I am confi dent that with a strong seconded as Chief Executive Offi cer management team, a passionate to N-KOM in Qatar. Overall stricter regulatory standards and workforce and the support of its regimented focus on HSE by the industry business associates, Keppel O&M will People are our greatest assets, and we will favour drillers and operators with continue to achieve distinction and continue to empower employees at all stronger safety practices and newer high deliver value to all stakeholders. levels to give their best and contribute specifi cation equipment. The effects to the creation of value for our are already apparent and continue to Yours sincerely, customers. Employees demonstrating provide impetus for the renewal and high potential are selected for job upgrading of the global offshore fl eet. rotations and overseas postings to expose them to different aspects of In light of these developments, the solid Keppel O&M’s global operations. foundations built over the years and In fact, more than 80% of our General the process of continual improvements Choo Chiau Beng Managers have completed their tour that we have put in place, will position Chairman of duty in at least three departments Keppel O&M in good stead to deliver 9 March 2011

Chairman’s Statement 5 Perfecting Execution

Strong project management g Continuing to deliver on its promises safely, on time and within budget in 2010, the Group completed 12 newbuild jackup and semisubmersible rigs, five major FPSO/FSRU conversion projects and 18 quality vessels worldwide.

Safety excellence g The new Keppel Safety Training Centre marks another stride in our journey towards achieving an incident-free workplace and a pervasive safety culture. It has equipped and certified more than 8,300 staff members and subcontractors to date. Advancing Innovation

Technology leadership g Our strong engineering competencies allow us to respond swiftly to customer needs and technological advancements. We have the foresight and flexibility to adapt our modern proprietary designs for a wide variety of applications, including the installation and maintenance of offshore wind turbines.

Trendsetting partnerships g Combining our technology know-how and operational expertise, we collaborate with trendsetting customers and industry experts to design and deliver advanced and high-specification solutions, such as the DSSTM 21 semisubmersible drilling rig, Maersk Deliverer. Empowering People

Core values cultivation g Our global workforce is aligned with a common set of core values that drives it to consistently achieve excellence and create value for the company and our stakeholders.

Talent development g We cultivate strong performers and effective leaders with rigorous training and professional development opportunities. Through active mentorship, we ensure that our expertise and strong work ethics are passed on from one cohort to the next. Group Financial Highlights

2010 2009 S$’000 S$’000 Consolidated Balance Sheet as at 31 December 2010 Share capital 339,716 339,716 Reserves 1,532,669 1,160,591 Shareholders’ funds 1,872,385 1,500,307 Non-controlling interests 180,642 163,127 Capital employed 2,053,027 1,663,434

Represented by:

Fixed assets 1,247,443 1,168,443 Associates 171,500 102,439 Loans receivable 40,864 50,806 Goodwill 50,042 36,363 Investments 171,425 66,862 1,681,274 1,424,913

Current assets Stocks 118,241 187,785 Work-in-progress (cost > billings) 552,241 503,666 Related companies & associates 137,321 86,258 Other assets 195,061 210,912 Debtors 731,638 748,082 Bank balances, deposits & cash 2,805,602 2,602,055 4,540,104 4,338,758

Current liabilities Creditors 2,189,323 2,168,163 Work-in-progress (billings > cost) 1,389,554 1,571,821 Other liabilities 8,240 36,055 Short-term loans 20,683 – Taxation 243,252 228,934 3,851,052 4,004,973

Net current assets 689,052 333,785

Non-current liabilities Long-term loans 213,559 – Deferred taxation 85,734 77,707 Deferred liabilities 18,006 17,557 317,299 95,264

Net assets 2,053,027 1,663,434

Keppel Offshore & Marine Ltd 12 Report to Stakeholders 2010 2010 2009 Change S$’000 S$’000 % Consolidated Profi t & Loss Account for the fi nancial year ended 31 December 2010 Revenue 5,577,010 8,273,390 -33

Operating profi t 1,195,047 1,056,907 +13 Net interest / investment income 72,542 31,370 +131 Share of results of associates 48,773 43,918 +11 Profi t before tax 1,316,362 1,132,195 +16 Taxation (242,059) (233,983) +3 Profi t after tax 1,074,303 898,212 +20 Non-controlling interests (12,606) (36,725) -66 Profi t before exceptional items 1,061,697 861,487 +23 Exceptional items (24,762) (22,550) +10 Net profi t 1,036,935 838,937 +24

Economic Value Added (before exceptional items) 947,112 803,455 +18

Keppel O&M turned in another The Group’s return on equity (before outstanding set of results in 2010. exceptional items) was 63%, while Although revenue dropped 33% to Economic Value Added of $947.1 million $5.6 billion due to a lower workload, was $143.6 million higher than that of operating profi t increased 13% to the previous year. a record $1,195 million. Operating effi ciencies and hence margins have The Group delivered 12 rigs, fi ve improved substantially as less work major FPSO/FSRU projects and was outsourced. Net interest income 18 specialised vessels in 2010. The also increased to $70.1 million. total value of contracts secured for Contributions from associates rose the year was $3.2 billion, and the 11% to $48.8 million. Profi t after tax Group ended the year with a net was up 20% to $1,074.3 million, orderbook of $4.6 billion. while profi t before exceptional items increased 23% to $1,061.7 million. Exceptional items of $24.8 million were related to goodwill and asset impairment.

Group Financial Highlights 13 Group at a Glance

Keppel Offshore & Marine Global leader in offshore rig design, construction and repair, shiprepair and conversion, and specialised shipbuilding.

Headquartered in Singapore, Keppel O&M integrates Group Focus for 2011/2012 and harnesses the experience and expertise of 20 yards worldwide to optimise deployment of resources Fortify core competencies and effectively execute its Near Market, Near Customer g Build on operational excellence and raise productivity strategy. levels to deliver projects safely, on time and within budget.

The head office serves two central functions, providing Leverage growth platforms Operational Services including technology, design g Extend expertise to offer a wider range of and development, engineering and procurement, products, solutions and services for the offshore as well as Corporate Services covering finance, legal, and marine industry through R&D. human resources, information services and corporate development. Harness global synergies g Develop and draw on the collective strength of Driven by innovation and a team of capable people global yards and offices to reinforce Near Market, Near with the Can Do! spirit, we strive to become a builder Customer strategy and deliver value to customers. of distinction in every aspect of our business. Increase business robustness g Seek opportunities to strategically acquire or co-invest with partners in new capabilities and facilities, and enter into new markets.

Keppel Offshore & Marine Ltd 14 Report to Stakeholders 2010 Offshore Marine Specialised Leading designer, Trusted industry name Shipbuilding builder and repairer for the repair, conversion Designer and builder of high-performance and upgrade of a of a wide spectrum of mobile offshore diverse range of vessels. highly specialised ships drilling rigs. for a global clientele.

The Offshore Division, helmed The Marine Division is The Specialised Shipbuilding by Keppel FELS, is a leading represented by Keppel Division led by Keppel designer, builder and repairer Shipyard, the trusted industry Singmarine, has a track record of high-performance mobile name for the repair, conversion of some 400 newbuild vessels offshore drilling rigs. and upgrade of a diverse range of diverse functions and of vessels. sophistication. The Division’s portfolio of proprietary designs and Keppel Shipyard is a leader Its portfolio of customised floating production solutions in the conversion of Floating vessels spans Anchor Handling meets a broad spectrum Production Storage and Tug/Supply vessels, multi- of operating requirements Offloading; Floating Storage purpose Offshore Support including deep waters and and Offloading; and Floating Vessels and tugboats to highly harsh environments. Storage Regasification Units. advanced solutions such as Its competencies include ice-capable vessels. With technology innovation topside and turret fabrication. and competent design and Harnessing its suite of design engineering capabilities, With strong commitment to and engineering solutions, this Division offers viable, Health, Safety and Environment strong logistics and cost-effective and highly and an established reputation infrastructure support in adaptable solutions for of reliability, flexibility and Singapore, this Division newbuilds and upgraded quality for complex projects provides customers with offshore units. with quick turnaround, the one-stop value-added services. Division continues to deliver high value to its customers.

Group at a Glance 15 Board of Directors

Choo Chiau Beng Tong Chong Heong

Chairman of Keppel Offshore & Chief Executive Officer of Marine Ltd; Chief Executive Officer Keppel Offshore & Marine Ltd, of Keppel Corporation Limited and Keppel FELS Limited and Chairman of Keppel Land Limited Keppel Shipyard Limited; and Keppel Energy Pte Ltd. Chairman of Keppel Integrated Engineering Limited and Executive Director of Keppel Corporation Limited.

Sit Peng Sang Bjarne Hansen

Executive Director of Senior Partner of Wing Partners Keppel Offshore & Marine Ltd. I/S, Denmark.

Keppel Offshore & Marine Ltd 16 Report to Stakeholders 2010 Prof Neo Boon Siong Stephen Pan Yue Kuo

Professor of the Nanyang Chairman of World-Wide Shipping Business School at the Nanyang Agency Limited of Hong Kong. Technological University, Singapore.

Prof Minoo Homi Patel

Professor of Mechanical Engineering and Director of Development in the School of Engineering at Cranfield University.

Board of Directors 17 Board of Directors

Dr Malcolm Sharples Teo Soon Hoe

President of Offshore Risk & Senior Executive Director and Technology Consulting Inc., USA. Group Finance Director of Keppel Corporation Limited.

Tan Ek Kia

Chairman of City Gas Pte Ltd, and an Independent and Non-executive Director of Keppel Corporation Limited.

Keppel Offshore & Marine Ltd 18 Report to Stakeholders 2010 Po’ad Bin Shaik Abu Bakar Mattar Lim Chin Leong

Independent Director of Former Chairman of Asia, Hong Leong Finance Limited and Schlumberger. Tiger Airways Holdings Limited.

Loh Chin Hua

Managing Director of Alpha Investment Partners Limited.

Board of Directors 19 Key Personnel Offshore & Marine

1_Wong Ngiam Jih 5_Tong Chong Heong 9_Nelson Yeo

Chief Financial Officer Chief Executive Officer Managing Director (Marine)

2_Chee Jin Kiong 6_Chow Yew Yuen 10_Lai Ching Chuan

Executive Director President (Keppel Offshore & Senior General Manager (Human Resources) Marine USA Inc) (Corporate Development)

3_Sit Peng Sang 7_Hoe Eng Hock 11_Michael Chia

Executive Director Executive Director Managing Director (Offshore) (Keppel Singmarine)

4_Choo Chiau Beng 8_Wong Kok Seng

Chairman Managing Director (Keppel FELS)

9 7 8 4 10 11 6

1

3 5 2

Keppel Offshore & Marine Ltd 20 Report to Stakeholders 2010 1_Yong Chee Min 4_Dr Lee Chay Hoon 7_Choon Yong Boon

General Manager (Projects) General Manager Head (Information Systems) (Organisation Development)

2_Edmund Mah 5_Fong Swee Theng 8_Chandru Sirumal Rajwani

General Manager (Finance) Group Facilities Manager General Manager (Health, Safety & Environment)

3_Jeffery Chow 6_Anthony Toh 9_Kenneth Chong

General Manager (Legal) Group Security Manager Assistant General Manager (Legal) (Company Secretary)

6 7 8 9 5 4 3

1 2

Key Personnel Offshore & Marine 21 Key Personnel Keppel FELS

1_Chandru Sirumal Rajwani 2_Keith Teo 4_Yeo Yue Ngiap

General Manager General Manager General Manager (Commercial) (Quality Assurance/Commissioning/ (Marketing) Vendor Quality Engineering)

3_Wong Kok Seng

Managing Director

2 1 4

3

Keppel Offshore & Marine Ltd 22 Report to Stakeholders 2010 1_Chris Ong 2_Aziz Amirali Merchant 4_Wong Fook Seng

Assistant General Manager Executive Director General Manager (Engineering) (Operations/Quality Systems/ Process Excellence)

3_David Lee

Financial Controller

1 3 4

2

Key Personnel Keppel FELS 23 Key Personnel Keppel Shipyard

1_Louis Chow 2_Jim Lim 4_Chor How Jat

General Manager Financial Controller Executive Director (Commercial)

3_Nelson Yeo

Managing Director

2 4

1 3

Keppel Offshore & Marine Ltd 24 Report to Stakeholders 2010 1_Charles Sim 2_Burt Loh 4_Spencer Leong

General Manager General Manager (Operations) General Manager (Offshore Production) (Development)

3_Mah Chan Wah 5_Tan Peng Pong

General Manager General Manager (Commercial – Shiprepair) (Engineering & Systems Development)

2 4 1 5

3

Key Personnel Keppel Shipyard 25 Key Personnel Keppel Singmarine

1_Toh Ko Lin 2_Tan Cheng Hui 4_Edmund Lek

Senior General Manager Senior General Manager General Manager (Commercial) (Engineering) (Production)

3_Hoe Eng Hock

Executive Director

1 4

2 3

Keppel Offshore & Marine Ltd 26 Report to Stakeholders 2010 1_Charles Yap 2_Au-Yeong Kin Ho 3_Poon Tai Lum

General Manager General Manager General Manager (Purchasing / Warehouse) (Engineering) (Commercial / Marketing)

12

3

Key Personnel Keppel Singmarine 27 Key Personnel Research & Development

1_Charles Foo 3_Dr Foo Kok Seng 5_Dr Yip Hee Yan

Director/Advisor, KOMtech Centre Director, KOMtech Technology Manager Executive Director, Offshore (Offshore Production), Technology Development Keppel Shipyard

2_Tan Cheng Hui 4_Chong Wen Sin 6_Anis Hussein

Senior General Manager, Senior Project Manager General Manager, Marine Technology Development (FPSO/Process), KOMtech Deepwater Technology Group

6

4 5

2

3 1

Keppel Offshore & Marine Ltd 28 Report to Stakeholders 2010 1_Dr Asbjorn Mortensen 3_Aziz Amirali Merchant 5_Au-Yeong Kin Ho

Senior Programme Manager Head, Deepwater Technology Group General Manager, (Drilling Equipment), KOMtech Marine Technology Development

2_Charles Sim 4_Dr Matthew Quah 6_Mohan Dass

General Manager Senior Programme Manager Programme Manager (Offshore Production), (Offshore Structures), KOMtech (Technology Foresight), KOMtech Keppel Shipyard

1 4

2 6 5

3

Key Personnel Research & Development 29 Key Personnel Overseas Managers

1_Michael Holcomb 3_Roy Sletten 6_Harold Linssen

Keppel Marine Agencies Keppel Norway Keppel Verolme (Texas, USA)

2_John J. Bajor 4_Yick Ping Wong 7_Jimmy Loh

Keppel Marine Agencies Keppel Kazakhstan Arab Heavy Industries (New Jersey, USA)

5_Lee Tai Kwee

Keppel Nantong Shipyard

1

4 6

2

3 5 7

Keppel Offshore & Marine Ltd 30 Report to Stakeholders 2010 1_Tan Geok Seng 3_Chow Yew Yuen 6_Yan Naing Myint

Keppel AmFELS Keppel O&M (USA) Caspian Shipyard Company

2_Kwok Kai Choong 4_Abu Bakar Mohd Nor 7_Mok Kim Whang

Keppel FELS Brasil Nakilat-Keppel O&M Keppel Subic Shipyard, Inc

5_Toh Ko Lin

Keppel Philippines Marine

5

1 3

6

2 4 7

Key Personnel Overseas Managers 31 Key Personnel

OVERSEAS OPERATIONAL CENTRES

Arab Heavy Industries PJSC Albert Garcia Caspian Shipyard Company Ltd Jimmy Loh Financial Controller Yan Naing Myint Managing Director President Eric Phua Chan Lim Hong Vice President, Commercial Lau Kuat Pin General Manager Vice President Juan Cruz Shui Yee Siang Vice President (Production Elshan Gurbanov Finance & Administration Manager and Engineering) Chief Financial Offi cer

Bintan Offshore Gilbert Elizondo Edward Low Herman Effendy Vice President (Human Resources) Commercial Manager General Manager Keppel FELS Brasil Group Keppel Norway AS Keppel Philippines Marine, Inc Kwok Kai Choong Roy Sletten Toh Ko Lin President & Chief Executive Offi cer Acting CEO President Tommy Sam Gunnar Larsen Agnes Barbara L. Lorenzo Vice President Chief Financial Offi cer Vice President (Administration & Finance) Gilberto Israel Keppel Nantong Shipyard Commercial Director Company Limited Keppel Batangas Shipyard Lee Tai Kwee Poh Leong Kok Jerald Lee President Senior Vice President Chief Financial Offi cer Wong Phuay Cheng Goh Chee Hian, Kelvin Alceu Mariano Vice President (Operations) Senior Vice President Institutional Relations Director Li Gang Keppel Subic Shipyard, Inc Edmundo Santos Vice President (Commercial) Mok Kim Whang Operations Director President Ben Ang Keppel Verolme BV Vice President (Finance) Froilan dela Cruz Harold Linssen Vice President Managing Director Nakilat-Keppel Offshore (Commercial & Marketing) & Marine Ltd Wong Wei Kei Abu Bakar Mohd Nor Keppel Offshore & Marine USA Inc Chief Financial Offi cer Chief Executive Offi cer Chow Yew Yuen President, The Americas Keppel Kazakhstan LLP Albert Kee Yick Ping Wong General Manager (Operations) Cheung Tak On General Director Vice President (Technology) Regency Steel Japan Anil Kumar Sultan Wong Chun Yu Simon Lee Executive Vice President President Vice President (Projects) Lim Ah Beng Hatano Shigeyuki Yeong Wai Seng Assistant General Director Chief Operating Offi cer Vice President (Special Projects) & General Manager (Floating Production Chow Wai Hoong Keppel Singmarine Brasil Systems) Chief Financial Offi cer Hoe Eng Hock Executive Director Keppel AmFELS Inc Venera Nurmukhametova Tan Geok Seng Head of Administrative Department Tan Chong Kee President & Chief Executive Offi cer General Manager

Keppel Offshore & Marine Ltd 32 Report to Stakeholders 2010 ENGINEERING/TECHNOLOGY CENTRES REPRESENTATIVE OFFICES

Keppel Offshore & Marine Marine Technology Keppel Marine Agencies Technology Centre Pte Ltd Development Pte Ltd International, LLC Dr Foo Kok Seng Tan Cheng Hui Michael Holcomb Centre Director Senior General Manager President/Director, Texas

Charles Foo Au-Yeong Kin Ho John J Bajor Director/ Advisor General Manager Director, New Jersey

Dr Yip Hee Yan FloaTEC, LLC Keppel Prince Engineering Pty Ltd Technology Manager (Offshore Eric H Namtvedt Charles Chiam Production) Keppel Shipyard President Director

Mohan Dass Keppel FELS Baltech Ltd Programme Manager Lyudmil Stoev (Technology Foresight) General Manager MARINE SERVICES Dr Matthew Quah Ivan Petrov Pelov Senior Programme Manager Senior Engineering Manager (Offshore Structures) Asian Lift Pte Ltd Keppel FELS Engineering John Chua Dr Asbjorn Mortensen Shenzhen Co.,Ltd General Manager Senior Programme Manager Ho Jong Heng (Drilling Equipment) General Manager Keppel Smit Towage Pte Ltd Ben Chew Chong Wen Sin Keppel FELS Offshore & General Manager (Regional) Senior Project Manager Engineering Services Mumbai (FPSO/Process) Pvt Ltd Jerry Wong Anant Keshav Shukla General Manager Offshore Technology General Manager Development Pte Ltd Dr Foo Kok Seng Executive Director EMPLOYEE UNIONS Lim Teng Kiat Assistant General Manager Keppel Employees Union Deepwater Technology Group Mohamed Yusop Bin Mansor Pte Ltd President Aziz Amirali Merchant Head Mohd Yusof B Mohd General Secretary Anis Altaf Hussein General Manager Keppel FELS Employees Union Vincent Ho Mun Choong President

Atyyah Hassan General Secretary

Shipbuilding & Marine Engineering Employees Union Wong Weng Ong President

Lim Chin Siew Executive Secretary

Goh Sor Imm Deputy Executive Secretary

Key Personnel 33 We are committed to pursue excellence and quality results, working in partnership with We continue to deliver on our promises customers. and win customers’ confidence worldwide through operational excellence and technology innovation.

Keppel Offshore & Marine Ltd 34 Report to Stakeholders 2010 Operations Review & Outlook

Keppel FELS delivered Rowan Viking, the fi rst of three KFELS N Class jackups, to Rowan Companies safely, on time and within budget.

2010 marked another signifi cant year of the fi rst of three North Sea-compliant deliveries for the Keppel O&M group, KFELS N Class rigs, as well as Seadrill’s whose drive for productivity and two KFELS B Class jackups, West operational excellence enabled it to Callisto and West Juno. deliver on its promises safely, on time, and within budget to customers across Keppel FELS also achieved remarkable the globe. Our business units worldwide construction feats on two fl oating collectively delivered 12 rigs, fi ve major accommodation semis, Floatel Superior FPSO/FSRU conversion projects and and Floatel Reliance. Built respectively to 18 specialised vessels among other our proprietary DSSTM 20NS and SSAUTM repair, upgrade and completion projects. 3600 designs, both semis were delivered incident-free and over a total of 120 days Against the backdrop of a recovering ahead of schedule to Floatel International. global economy, stabilising oil prices and Notably, the Floatel Superior is the fi rst post-effects of the Macondo incident, North Sea-compliant accommodation we replenished our orderbook with new semi to be delivered in 20 years. The projects that will stretch into 2013. company also delivered ahead of schedule to Ensco the third and fourth OFFSHORE units in a series of seven ENSCO 8500 Keppel FELS Series® deepwater rigs, and to Maersk Upholding its reputation and commitment Drilling the third DSSTM 21 drilling semi. to deliver on its promises, Keppel FELS completed a series of newbuilding and Meanwhile, the yard continued to engage repair projects with the highest safety customers worldwide on rig repair standards either early or on time, and programmes and achieved early within the budgets of its customers. completion of major upgrades and repairs on semis and jackups belonging to Stena During the year, the company delivered Drilling, Transocean, Songa Offshore, a total of eight newbuilds, comprising Japan Drilling Company and Seadrill. three jackups and fi ve semisubmersible (semi) rigs. It successfully delivered During the year, Keppel’s proprietary to Rowan Companies, Rowan Viking, solutions gained signifi cant traction in

Operations Review & Outlook 35 Operations Review & Outlook

the market through a series of newbuild orders from various customers. Keppel FELS secured contracts to build Saudi Safe Haven in Rough Seas Aramco’s fi rst purpose-built jackup based on the KFELS Super B Class design, and four KFELS B Class units, one each for Standard Drilling and Jasper Keppel FELS delivered two newbuild accommodation semis Investments, and two for Mermaid to Floatel International ahead of schedule, safely and within Maritime’s Asia Offshore Drilling Limited. budget in 2010. These floating accommodation platforms provide additional living quarters for personnel deployed over various phases of offshore work from hook-up and 2010 also marked Keppel FELS’ entry into commissioning to decommissioning. the emerging offshore wind energy market with the acceptance of its proprietary TM The DSS 20NS Floatel Superior is the first floating Multi-Purpose Self-Elevating Platform accommodation unit built in full compliance with all the latest rules and regulations for the Norwegian Continental Shelf in (MPSEP) concept. The KFELS MPSEP more than 20 years. The rig provides accommodation for was chosen by the Seafox Group as the 440 persons in one-man cabins and is equipped with integrated basis for a new-generation wind turbine live-work-play amenities and a Dynamic Positioning (DP) III and foundation installation vessel for the system. The unit has since completed a three-month charter North Sea. for ConocoPhillips in Australia, and is being prepared for work in Norway with Talisman Energy Norge AS in the Yme field and Statoil Petroleum AS in the Oseberg field. Confi dent of the yard’s quality services and ability to perform quick turnaround, The second rig Floatel Reliance, built to DTG’s cost-effective discerning rig owners worldwide TM KFELS SSAU 3600 design, is well-suited for worldwide continued to call at Keppel FELS with a operations outside the North Sea. It has a total accommodation capacity for 500 persons and can operate alongside fixed variety of complex repair, upgrade and platforms with the complement of a DP II system. Floatel completion jobs. Scarabeo 9, a Frigstad Reliance has been chartered to Petrobras for five years in D90 semi owned by Saipem S.p.A., the Campos Basin. was towed to the yard to have its installation and commissioning works completed. The yard was also awarded a contract to upgrade, repair and refurbish the ENSCO 7500 semi.

Keppel AmFELS Keppel AmFELS had a productive year in 2010 with the delivery of four newbuild jackup rigs to its customers’ highest satisfaction. These included Perforadora Central’s Tuxpan jackup and three of four Rowan EXL jackup units. Notably, the early completion of the third rig, Rowan EXL-III, in December earned the company a bonus. Meanwhile, the construction of the last rig, Rowan EXL-IV, is progressing smoothly. During the year, the yard also secured and completed the repair and modifi cation of Seahawk Drilling’s Seahawk 3000 jackup.

The DSSTM 20NS Floatel Superior built by Keppel FELS, is the fi rst fl oating As the most well-equipped offshore accommodation unit built in full compliance with all the latest rules and regulations shipyard in the Gulf of Mexico, of the Norwegian Continental Shelf in more than 20 years. Keppel AmFELS stands ready to

Keppel Offshore & Marine Ltd 36 Report to Stakeholders 2010 1 2

1_The early completion of Rowan EXL-III, in December 2010 earned Keppel AmFELS a bonus.

2_Mr Wong Kok Seng, Managing Director of Keppel FELS, hands over West Callisto’s nameplate to Mr Ian Shearer, Vice-President (Operations) of Seadrill.

Operations Review & Outlook 37 Operations Review & Outlook

12

1_Caspian Shipyard Company support drillers and operators in the productivity and cost effectiveness, successfully completed the integration of Bumi Armada’s region seeking to renew and upgrade the yard was able to achieve stellar Derrick Lay Barge. their rig fl eets post-Macondo. In safety records and bonuses on

2_The BrasFELS yard was able delivering quality solutions safely, several projects. BrasFELS achieved to achieve stellar safety records on time and within budget, Keppel 1.24 million man-hours worked without and bonuses on several projects as a result of investments made AmFELS also continues to fortify its LTI (lost time incidents) on the to improve its productivity. presence as a trusted solutions P-57 vessel, earning it a US$20,000 provider to the Mexican market. bonus from SBM, and received a US$1.5 million bonus from QGOG. It Keppel FELS Brasil also attained milestones of Over at Angra dos Reis, Keppel FELS 1.07 million and 1.89 million man-hours Brasil’s BrasFELS yard completed worked without LTI on the Petrobras’ several repair, conversion and upgrade BGL-1 and P-56 projects respectively. projects, including the early and safe delivery of the P-57 Floating Production Caspian Shipyard Company Storage and Offl oading (FPSO) vessel 2010 was relatively quiet for Caspian to Single Buoy Moorings Inc. (SBM) in Shipyard Company (CSC) as October. The other projects comprised compared to previous years with semis from drillers Pride International, the completion of a pipe-rack project Diamond Offshore, Transocean and for Agip-KCO and the integration of Queiróz Galvão Óleo e Gás (QGOG). Bumi Armada’s Derrick Lay Barge. Additionally, the yard secured a vessel Early in the year, the BrasFELS yard repair job from Saipem which also fi rmed up a landmark project to was completed on time, on budget build the P-61 Tension Leg Wellhead and incident free. It also restored Platform, as part of a contract between wheelhouses on two vessels from FloaTEC Singapore and the Papa-Terra repeat customer BUE Marine. Joint Venture comprising Petrobras and Chevron. During the year, CSC successfully streamlined its operations and reduced As a result of investments made overhead costs, preparing the yard to during the year to improve BrasFELS’ take on new jobs effi ciently.

Keppel Offshore & Marine Ltd 38 Report to Stakeholders 2010 Keppel Verolme provided quick Keppel Verolme industry by contributing its strong turnaround for the repair and maintenance of a wide spectrum of Demonstrating its versatility in 2010, engineering and construction capabilities. offshore and marine vessels from Keppel Verolme provided quick fl eet owners across Europe and the US in 2010. turnaround on the repair and maintenance Keppel Kazakhstan of a wide spectrum of offshore and marine Keppel Kazakhstan continued to vessels from fl eet owners across Europe support Agip KCO with the fabrication and the US in 2010. These projects of pipe racks, pontoons and ancillary ranged from crane and pipelay vessels steelwork for the experimental to semis, jackups and passenger ferries. phase of the Kashagan fi eld development, delivering a total of Bringing the synergy of our global 52 such units in 2010. During the year, network to bear, Keppel Verolme sealed it also secured a new contract from a Letter of Intent with Maersk to modifi y the customer to build two additional the spud cans of the Maersk Reacher ice-breaking emergency evacuation jackup rig, which was built by vessel pontoon units. Keppel FELS in Singapore. Keppel Kazakhstan has built one of Keppel Verolme also achieved a good the most modernised and well-equipped head start in the North Sea offshore fabrication yard facilities in the region. wind energy sector during the year. It also enjoys a strong reputation for Together with consortium partner delivering quality products on time and Alstom Grid (formerly AREVA with the highest HSE (Health, Safety Energietechnik), it secured a contract and Environment) standards. to build a transformer and maintenance platform for the Global Tech I Wind Since the start of its partnership with Farm in the German sector of the Agip KCO in 2005, Keppel Kazakhstan North Sea. has achieved a record of 10 million man-hours without LTI on all projects for As the preferred shipyard partner in the customer. The yard’s commitment Europe and the North Sea, Keppel towards zero accidents was recognised Verolme is in a strategic position to add with an award from Agip KCO in the last value to the emerging offshore wind quarter of 2010.

Operations Review & Outlook 39 Operations Review & Outlook

1

1_The FPSO Maersk Peregrino MARINE a derrick lay barge for Bumi Armada. was converted to Maersk FPSOs’ stringent requirements, which Keppel Shipyard The barge was built in two longitudinal will prepare her to handle the Keppel Shipyard kept up its performance hull strips before being transported to heavy crude oil of the Peregrino fi e l d i n B r a z i l . in 2010 despite it being a challenging year Azerbaijan and joined together at for the shiprepair and conversion industry. Caspian Shipyard Company. 2_Keppel Subic Shipyard won a drillship upgrading job The yard continued to fortify its close from Frontier Drilling in 2010, relationships with both long-term and Several new contracts were secured in among others. new customers, offering reliable services 2010. These included the conversion of and fast turnaround on their vessels. The three FPSOs and a livestock carrier from yard was also given bonuses for the safe repeat customers and the upgrading and and early completion of various repair modifi cation of another two FPSO units and conversion projects. from SBM and new customer OSX Brasil, as well as a turret fabrication job from During the year, Keppel Shipyard SOFEC, Inc. At the year’s closing, the yard repaired a total of 302 vessels, with had seven FPSOs and fi ve other major the majority being tankers, container projects in various stages of progress. ships and bulkers. Repeat customers, including those with fl eet agreements, In recognition of its business and contributed about 60% of Keppel operational excellence, Keppel Shipyard Shipyard’s shiprepair turnover. was conferred its sixth consecutive Shipyard of the Year Award at the The yard converted four FPSOs and a 12th Lloyd’s List Maritime Asia Awards. Floating Storage and Regasifi cation Unit This is in addition to various other (FSRU) from various owners, including accolades received for safety and the pre-conversion of FPSO P-57 community service. for long-standing customer SBM. During the year, Keppel Shipyard also Keppel Philippines Marine successfully fabricated the world’s Keppel Philippines Marine’s (KPMI) largest internal turret in terms of mooring reliability and strong track record for force for BP’s Skarv FPSO. It also high-quality workmanship and services converted a livestock carrier for the continue to win the recognition of Hijazi & Ghosheh group and constructed shipowners operating in the Philippines.

Keppel Offshore & Marine Ltd 40 Report to Stakeholders 2010 Harnessing Global Synergies

Spanning the size of almost three football fields, P-57 is one of the largest Brazilian FPSO vessels to be converted, under a turnkey supply contract between SBM and Petrobras Netherlands B.V.

After a successful pre-conversion at Keppel Shipyard in Singapore, FPSO P-57 had its topside modules seamlessly integrated at Keppel’s BrasFELS yard in Brazil. The project fulfilled the local content requirement of 68%, and was achieved with an outstanding combined safety record of about nine million incident-free man-hours.

This landmark national project was named at the BrasFELS yard on 7 October 2010 in the presence of then President of Brazil H.E. Luiz Inácio Lula da Silva. The event was also 2 attended by managements of Keppel and SBM, and some 8,000 BrasFELS employees. The company’s shipyards in Batangas and Subic maintained P-57 is the 12th major FPSO conversion/upgrading project that high productivity levels and serviced Keppel has completed for Brazil. This FPSO can process up to 180,000 barrels of oil and two million cubic metres of gas per a total of 169 vessels in 2010. The day. It has since achieved first oil in the Jubarte field, offshore equipping of both yards to take on Espirito Santo. higher value work also yielded good results. Keppel Batangas was awarded a contract to construct the crane barge Ratu Giok, while Keppel Subic Shipyard garnered a drillship upgrading job from Frontier Drilling and several coal transshipment conversion projects.

During the year, the Keppel Group raised its effective stake in the Subic shipyard from 44% to 83.9%. The improved synergy between Keppel Batangas and Keppel Subic Shipyard further reinforces Keppel O&M’s Near Market, Near Customer strategy and enhances the depth and breadth of its services to global customers. Under the helm of KPMI, Keppel Batangas will focus on building up its overseas clientele, while Keppel Subic Shipyard fortifi es its presence in the marine conversion and modifi cation market.

Arab Heavy Industries Keppel O&M’s associate company A strong network of global yards make it possible for us to accomplish challenging projects such as the P-57 across continents with quality and precision. Arab Heavy Industries PJSC (AHI) in

Operations Review & Outlook 41 Operations Review & Outlook

1 2

1_N-KOM features state-of-the-art Ajman, United Arab Emirates, received N-KOM features state-of-the-art amenities including two VLCC graving docks with 2,400 metres of a consistent stream of shiprepair work amenities including two VLCC graving berthage that can accommodate all from its customers. During the year, docks with 2,400 metres of berthage types of vessels up to 450,000 dwt. AHI repaired a total of 212 ships, albeit that can accommodate all types of 2_We actively engage our 20% fewer than the year before, while vessels up to 450,000 deadweight customers for feedback so as to enhance our services its wholly-owned subsidiary Arab Eagle tonnes (dwt). It is also equipped to and achieve quality results. Marine Engineering repaired a total of undertake large-scale heavy steel

3_Returning customers continued 42 ships. fabrication and construction work. to contribute to the bulk of our shiprepair business during the year. AHI also undertook major fabrication The facility was inaugurated by and installation work for the vessels WB the Emir of Qatar in November 2010, Barge 225 and Thebaud Sea. It fabricated during which service arrangements and installed a new crane pedestal with eight major fl eet owners operating in and removed a 50-tonne crane on the the region were signed. These included Thebaud Sea, as well as put together new a three-year fl eet repair agreement with spuds and casings on the WB Barge 225. STASCo (Shell), a Letter of Intent for rig repairs with Gulf Drilling Inc, as well as Notwithstanding the slowdown in Letters of Agreement for shiprepair with offshore projects and infrastructure Mitsui OSK Line, NYK, K-Line, Idemitsui, development in the region, AHI is Lino Line, Mitsubishi and MARCAS. positioning itself to overcome the challenges with stricter cost controls, Located in one of the busiest oil and productivity improvements and gas centres in the world, N-KOM is targeted marketing. poised to be the centre of excellence for the repair, conversion and Nakilat-Keppel Offshore & Marine construction of marine and offshore Nakilat-Keppel Offshore & Marine vessels and structures. The yard is (N-KOM) is a 43-ha world-class accredited by Det Norske Veritas shipyard facility jointly developed by (DNV) with ISO 9001 for Quality, Keppel O&M and Qatar Gas Transport OHSAS 18001 for Occupational Company (Nakilat) in Qatar’s Health & Safety, and ISO 14001 for Ras Laffan Industrial City. Environmental Management.

Keppel Offshore & Marine Ltd 42 Report to Stakeholders 2010 3

Operations Review & Outlook 43 Operations Review & Outlook

Global Standard for Pipelaying

GLOBAL 1200 is one of the largest specialised vessels built and delivered by Keppel Singmarine in recent times. It is the first of two new generation derrick pipelay vessels for Global Industries. It comes with a state-of-the-art pipelay system and has the capability of operating in waters as deep as 3,000 metres and lay pipes as thick as large as 60 inches in diameter.

Dynamically-positioned, GLOBAL 1200 can be swiftly and economically deployed in offshore destinations worldwide. It is designed to meet the stringent standards in safety and stability required by International Maritime Organisation Special Purpose Ships codes. More than three million incident-free man-hours were clocked during the construction of this 162-metre vessel.

The successful completion of GLOBAL 1200 demonstrates Keppel Singmarine’s ability and versatility to engineer and 1 construct a variety of advanced vessels for all offshore frontiers. SPECIALISED SHIPBUILDING Keppel Singmarine Keppel Singmarine had a productive year in 2010, delivering a total of 11 specialised vessels, safely and on budget to its customers.

The yard was awarded safety bonuses from Greatship Global Offshore Services for the incident-free deliveries of three 4,600 dwt Multi-Purpose Platform Supply Vessels — Greatship Mohini, Greatship Mamta and Greatship Manisha. GLOBAL 1200, the fi rst of two pipelay vessels for Global Industries, was also delivered on time and with a perfect safety record.

Additionally, Keppel Singmarine delivered a 60-metre Anchor Handling Tug Supply vessel to Hadi Al-Hammam Establishment, a 100-tonne BP Anchor Handling Tug to Seaways International and fi ve tugboats to other customers. The yard also fabricated a column structure of a semi and two living quarter structures for Keppel FELS.

During the year, Keppel Singmarine clinched several newbuilding contracts Mr Hoe Eng Hock, Executive Director of Keppel Singmarine, presented G1200’s including a transshipment barge from Shipbuilder’s plate to Captain John Walsh. PT Indo Straits, a rock dumping fall

Keppel Offshore & Marine Ltd 44 Report to Stakeholders 2010 2 3 pipe vessel from Royal Boskalis Oil Recovery Support Vessels and 1_Keppel Singmarine delivered Greatship Mohini, a Multi-Purpose Westminster N.V., as well as a diving harbour tugs, Keppel Singmarine Brasil Platform Supply Vessel, to support vessel and two twin-screw will complement the BrasFELS yard in Greatship Global Offshore Services.

Azimuth Stern Drive (ASD) tugboats offering a slew of solutions for Brazil’s 2_Keppel Nantong Shipyard from various customers. offshore oil and gas sector. delivered tugboat Smit Angola to Smit International on time.

Keppel Nantong This 7.6-ha facility is undergoing 3_Azerbaijan President, HE Ilham Aliyev (extreme left) breaks ground In 2010, Keppel Nantong Shipyard a modernisation programme, which for the new Baku Shipyard in the in China delivered six ASD tugboats includes upgrading the existing slipway, presence of Singapore’s Foreign Affairs Minister, Mr George Yeo of various capacities to Keppel as well as constructing a new slipway, (second from left). Smit Towage and Smit International a wharf, heavy-lift gantry cranes and Singapore. At year-end, the yard had pipe and hull shops fi tted with modern six 65-tonne bollard pull ASD tugs, machinery and equipment. To be a fl oating crane barge, two 14-metre operational in the second quarter mooring boats and a fl oating dock of 2011, the yard could complete an under construction. average of eight newbuild vessels a year at full capacity. Keppel Nantong is looking to expand its facilities to enable it to construct Baku Shipyard bigger and more advanced vessels During the year, Keppel O&M joined and offshore structures. hands with the State Oil Company of Azerbaijan Republic (SOCAR) and Keppel Singmarine Brasil Azerbaijan Investment Company, The newly-acquired Keppel Singmarine to develop and manage a new 52-ha Brasil yard in Navegantes, Santa Catarina, shipbuilding and shiprepair facility in will offer the Group’s ship design and Baku, Azerbaijan. construction expertise to help satisfy demand for support vessels in Brazil. Baku Shipyard will be developed over a period of two to three years, starting Focusing on the construction of from mid-2011. Upon completion, the Offshore Support Vessels such as yard will reinforce Keppel O&M’s AHTS vessels, Platform Supply Vessels, Near Market, Near Customer strategy

Operations Review & Outlook 45 Operations Review & Outlook

as it captures growth opportunities in the Caspian region.

OTHER SERVICES Asian Lift Asian Lift provides specialised marine heavy-lift services with its fl eet of proven sheerleg cranes. The company’s rich experience and expertise cover various challenging projects including the lifting of FPSO and offshore platform modules in various parts of the world, such as Nova Scotia, Brazil, Europe, the Middle East, Sri Lanka, Hong Kong and China.

During the year, its fl agship 3,200-metric tonne (mt) crane, the Asian Hercules II, was deployed successfully to lift a cantilever aboard Seadrill’s CJ70 rig, which was being constructed at another yard in Singapore. Nippon Steel Corp. It specialises Mud Additive System to Keppel FELS in the fabrication of heavy steel and Rowan. Keppel Smit Towage / Maju Maritime structures and provides solutions Collectively, Keppel Smit Towage (KST) for the heat treatment of high-end During the year, the company also and Maju Maritime manage and operate steel products. strengthened co-operation with a fl eet of 54 tugs, of which 22 are Keppel O&M Technology Centre currently based in the Singapore port, The rack and chord fabrication through the secondment of two 11 under time charter and the remaining business contributes a signifi cant employees and the development 21 operating in various ports in portion of RSJ’s revenue which of joint technology studies. Malaysia, Indonesia, Diego Garcia and is supplemented by a domestic Brunei. The tugs undertake harbour market for steel fabrication and Keppel Norway continues to support and ship towage activities as well as petrochemical and industrial machinery Keppel FELS on various projects such provide marine support to offshore amongst others. as the KFELS MPSEP wind turbine projects and emergency situations. and foundation installation vessel, RSJ will further upgrade its facilities Seafox 5. The company is also pursuing Coming off from several one-off to meet the expected increase in opportunities to partner with other high-value offshore projects performed workload over the next two years. Norwegian service providers in the in 2009, their revenue registered a The replacement of key machinery delivery of maritime automation and decrease of 11% in 2010 but saw the will be completed in 2011 and enable drives within the country, and potentially addition of seven new clients. RSJ to raise its productivity level and in Brazil. cost competitiveness. Meanwhile, the KST and Maju Maritime foresee a company is also looking at expanding continual upturn in the towage industry into the fabrication of monopile and in the Singapore port, and will see its jackets for wind turbines. fl eet expand to 60 with the addition of six new tugs, to further improve its Keppel Norway service level. Keppel Norway achieved important milestones across its operations Regency Steel Japan in 2010. The company contributed Regency Steel Japan (RSJ) is a to the deliveries of Rowan Viking joint venture company between and Floatel Reliance, and successfully Asian Lift provides specialised marine heavy-lift services with its Keppel FELS, Mitsui & Co. Ltd and commissioned and delivered a fl eet of proven sheerleg cranes.

Keppel Offshore & Marine Ltd 46 Report to Stakeholders 2010 Projects delivered in 2010

Newbuild Jackups Tuxpan LeTourneau Enhanced Perforadora Central Keppel AmFELS Class 116-C Rowan EXL I LeTourneau Super 116E Rowan Companies Keppel AmFELS Rowan EXL II LeTourneau Super 116E Rowan Companies Keppel AmFELS West Callisto KFELS B Class Seadrill Keppel FELS Rowan Viking KFELS N Class Rowan Companies Keppel FELS West Juno KFELS B Class Seadrill Keppel FELS Rowan EXL III LeTourneau Super 116E Rowan Companies Keppel AmFELS Newbuild Semisubmersibles ENSCO 8502 ENSCO 8500 Series Ensco plc Keppel FELS Floatel Superior DSSTM 20NS Floatel International Keppel FELS Maersk Deliverer DSSTM 21 Maersk Drilling Keppel FELS ENSCO 8503 ENSCO 8500 Series Ensco plc Keppel FELS Floatel Reliance SSAU™ 3600 Floatel International Keppel FELS FPSO / FSO / FSRU Conversions and Upgrades Capixaba FPSO SBM Inc. Keppel Shipyard BW Pioneer FPSO BW Offshore Keppel Shipyard P-57 (Pre-conversion) FPSO SBM Inc. Keppel Shipyard Golar Freeze FSRU Golar LNG Keppel Shipyard P-57 FPSO SBM Inc. BrasFELS Maersk Peregrino FPSO Maersk FPSO Keppel Shipyard Major Newbuild Vessels KST 55 Tug Keppel Smit Towage Keppel Nantong KST 56 Tug Keppel Smit Towage Keppel Nantong IBEEV Pontoon Agip KCO Keppel Kazakhstan Greatship Mohini MPSSV Great Eastern Shipping Group Keppel Singmarine BT Bontang 08 Tug PT Pelayaran Trans Parau Sorat Keppel Singmarine Mirbat Tug Salalah Port Keppel Singmarine KST Spring Tug Keppel Smit Towage Keppel Singmarine KST Salvo Tug Keppel Smit Towage Keppel Nantong Shipyard Smit Angola AHT Smit International Keppel Nantong Shipyard Greatship Mamta PSV Greatship Global Offshore Services Keppel Singmarine Greatship Manisha PSV Greatship Global Offshore Services Keppel Singmarine Seaways 16 AHT Seaways International Keppel Singmarine KST Sutra Tug Keppel Smit Towage Keppel Singmarine Smit Siyanda AHT Smit International Keppel Nantong Shipyard KST Stallion Tug Keppel Smit Towage Keppel Nantong Shipyard Global 1200 Derrick pipelayer Global Offshore Keppel Singmarine Ocean Damietta Tug Smit International Keppel Singmarine Hadi 28 AHTS Hadi H. Al-Hamman Establishment Keppel Singmarine Armada Installer Derrick lay barge Bumi Armada Berhad Keppel Shipyard Major Upgrades / Repairs / Outfi ttings BP Skarv Turret Turret construction SBM Inc. Keppel Shipyard Castoro Sei Pipelayer modifi cation Saipem Keppel Verolme MG Hulme Jr Semi upgrade Transocean Keppel FELS Carlos Walter Semi repair Pride International BrasFELS Stena Don Semi upgrade Stena Drilling Keppel Verolme Stena Clyde Semi upgrade Stena Drilling Keppel FELS Frontier Discoverer Drilling ship upgrade Frontier Drilling ASA Subic Shipyard Ocean Alliance Semi repair Diamond Offshore BrasFELS Alaskan Star Semi repair Queiroz Galvão Óleo e Gás BrasFELS Paul B. Lloyd Semi repair Transocean Keppel Verolme Ghena Livestock carrier conversion Hijazi & Ghosheh Co Keppel Shipyard NorCE Endeavour Pipelayer completion NorCE Keppel Shipyard

Operations Review & Outlook 47 Operations Review & Outlook

1

INDUSTRY OUTLOOK economic growth forecast upwards operators in their fl eet expansion and Market Review several times for 2010, and is now upgrading programmes, building on Emerging from challenges across the projecting that global economic output its track record for safe, on-time and global economy and the Macondo will grow 4.4% in 2011. within-budget deliveries. blowout, the offshore and marine industry set on the road to recovery at year-end, Fundamentals of the offshore and marine Offshore Deepwater Prospects underpinned by an early lifting of the US industry remain sound over the long term, The early sanctioning of deepwater drilling ban and resilient oil prices in the in spite of the unrest in the Middle East drilling in the Gulf of Mexico (GoM) has range of US$70 to US$90 per barrel. and North Africa, and the spate of natural had a positive effect on utilisation and disasters in Japan in early 2011. Energy day rates for deepwater units. With Towards year-end, the market also saw demand and oil prices are expected better clarity of the regulations arising a revival in capital spending, indicating to remain robust, with demand driven from the incident, and the resumption that confi dence had returned to many by population and economic growth, of activity and cash fl ow, drilling regions and sectors of the upstream particularly from developing countries companies began to push their projects industry. Wood Mackenzie estimates that across Asia Pacifi c and Latin America. forward and plan for future expansions global upstream capital spending in 2010 of their deepwater fl eets. touched US$380 billion, US$19 billion The International Energy Agency higher than in 2009. The Barclays anticipates global energy demand to The deepwater segment, as a whole, Capital Survey further forecasts global increase by 36% from now till 2035. Oil is buttressed by sound long-term E&P spending to rise 11% in 2011. This will continue to be the leading fuel in the fundamentals. Oil service companies uptrend is expected to continue over energy mix, while demand for natural gas the next three years, and the easing of is expected to experience the fastest credit and fi nancing conditions could growth rate among the fossil fuels. fuel the upside further. A projected increase in demand, matched by only a modest increase 1_With proven expertise across The near-term increase in expenditure in production, will put strong growth 20 yards worldwide, Keppel O&M is attributable to the improving interim expectations for the oil service and is in position to support owners and operators in their fl eet expansion outlook for the world economy. Most drilling industry. and upgrading programmes. nations returned to economic growth 2_Our operational excellence and paths that were anticipated before the With proven shipyard expertise across technology leadership ready us recession began. The International 20 yards worldwide, Keppel O&M is to meet the growing demand for high-specifi cation jackups such as Monetary Fund had also revised its in position to support owners and the KFELS N Class jackup rig.

Keppel Offshore & Marine Ltd 48 Report to Stakeholders 2010 2

Operations Review & Outlook 49 Operations Review & Outlook

continue to shift their E&P spending and the Keppel O&M group is well-poised Asia. With most of the installed fl eet activities towards deepwater projects, to deliver. considered as low specifi cation, the which offer greater potential, in terms replacement cycle is forecast to be of reserve volumes, productivity and Drilling Rigs, Production Units & sustained throughout the decade. profi tability. Douglas Westwood Specialised Ships projects deepwater expenditure The pickup in enquiries for newbuild The deepwater fl oater market is likewise to rise at a compounded annual jackups and subsequent orders placed expected to see an increase in repair, growth rate of 8% to arrive at around in the last quarter of 2010 have signalled refurbishment and upgrading activities. US$35 billion by 2014. It also expects the onset of an anticipated replacement With enhanced US safety requirements, total global capital expenditure to cycle for older drilling units in the market. drilling contractors are considering reach about US$167 billion during the The Macondo incident has in some yards with established quality and 2010–2014 period. measure contributed to the bifurcation safety standards to serve their needs. in the utilisation and day rates between Spillover demand from Petrobras’ massive premium and commodity jackups. Production vessels are poised to form newbuilding programme is expected to the next wave of orders following the drive the offshore deepwater market Presently, high-specifi cation jackups rig replacement cycle. Pareto Securities in the medium term. Additionally, the capable of drilling in water depths of more predicts that the demand for Floating emergence of more ultra-deepwater than 350 feet form only 6% of the global Production Systems (FPS) will continue drilling programmes in new frontiers fl eet. According to ODS-Petrodata, these to accelerate over the next fi ve years such as GoM’s Lower Tertiary trend, premium units enjoy close to 100% as exploration efforts yield more West Africa, the Mediterranean, Australia utilisation as compared to 70% for deepwater fi elds. Douglas Westwood and Southeast Asia will further support lower-specifi cation units. Moreover, rigs forecasts a surge in installations of demand growth for deepwater rigs. built in the mid-1980s to late 1990s are more than 100 FPSs worldwide during increasingly being cold-stacked as they Looking ahead, the far-reaching fail to secure further charter contracts. implications of the Macondo incident are expected to further alter the regulatory Drillers are therefore placing more and operating climate of the offshore and high-specifi cation jackup orders as marine industry. The stricter regulatory oil companies increase their jackup 2010 marked Keppel FELS’ entry environment has resulted in a strong rig count in regions of higher demand into the emerging offshore wind focus on newer drilling units with superior such as the Middle East, West Africa, energy market with the acceptance of its proprietary multi-purpose technical and safety capabilities, which the Mediterranean and Southeast self-elevating platform concept.

Keppel Offshore & Marine Ltd 50 Report to Stakeholders 2010 the 2010–2014 period, representing a total value of about US$45 billion. Keppel-built Rigs Aid The FPSO market is expected to remain in Gulf of Mexico Oil Spill strong as FPSOs continue to be the preferred solution for production in deepwater fi elds. FPSOs account for close to 80% of the total forecast FPS The two key rigs deployed in response to the Macondo well’s capital expenditure followed by TLPs, blowout in the Gulf region – the deepwater semi drilling rig Development Driller III and semi service platform Q4000 – were semis and Spars. built by Keppel FELS in Singapore and Keppel AmFELS in the US respectively. Strength in the sector will be driven by Latin America, which will contribute Deployed on 2 May 2010, Development Driller III expediently to almost a third of the global FPS intercepted the Macondo well. forecasted capex due to developments The Q4000 performed a static kill operation to plug the in offshore Brazil and its pre-salt Macondo well from the top. It pumped mud into the well at regions. Brazil will dominate the market various stages as the crew monitored and controlled the for FPS installations with Petrobras pressure levels in the well. looking to double its fl eet to 84 by 2020. The Q4000 also served as an oil recovery and containment vessel. Oil collected from the spill was processed onboard Strong oil prices, attractive charter rates Q4000 before being offloaded to a tanker. The safest and cabotage rules in regions of high and most practical method to manage the excessive oil demand are set to drive new orders for and gas was to burn them in a controlled manner. This was offshore support vessels (OSV), especially performed meticulously with the clean burning system onboard the Q4000. the more advanced units. Changing customer requirements, operating As the offshore drilling industry moves to operate under environments and regulatory frameworks a stricter regulatory environment in the Gulf of Mexico, are further driving demand for OSV Keppel O&M stands ready to meet these new requirements innovations to improve operational through its global network of yards and expertise. effi ciency and safety.

Our operational excellence and technology innovation, coupled with a solid track record for safe and seamless execution, ready us to meet the growing demand in our chosen segments of the global offshore and marine industry.

NEW GROWTH AREA Offshore wind is gaining momentum in the global arena as a renewable source of energy, providing good market potential for new designs and solutions to support offshore wind farms. The European Wind Energy Association, forecasts that 400 gigawatts (GW) of wind power will be operating in the European Union by 2030, including 150 GW of offshore wind power. The Keppel O&M group is building up its track record, as well as developing innovative solutions to penetrate this The semisubmersible Development Driller III built by Keppel FELS had successfully intercepted the Macondo well and brought the oil spill disaster to a close. growing market.

Operations Review & Outlook 51 Drilldeep 12000 is a revolutionary compact drillship jointly developed by Keppel’s Deepwater Technology “We are constantly adapting and Group and SBMGustoMSC. enhancing our products to meet the changing needs of customers, fully leveraging technology expertise to create solutions for all frontiers.”

Keppel Offshore & Marine Ltd 52 Report to Stakeholders 2010 Technology & Innovation

12

1, 2_With engineering centres Strong technology and engineering specialised offshore support vessels in Singapore, Bulgaria, Mumbai, Shenzhen and Houston, capabilities developed and strengthened and tugboats. we offer our customers 24/7 continually, give Keppel O&M the versatility engineering services. and fl exibility to respond promptly to These technology units have yielded ever changing customer needs. a prime portfolio of robust solutions, which are being expanded and improved We anticipate our industry’s requirements upon to create value for our customers. with keen technology foresight, and partner trendsetting customers and 24/7 ENGINEERING SERVICES institutions to create and deliver Keppel O&M’s technology units are high-quality products and services supported by established engineering competitively. centres in Singapore, Bulgaria, Mumbai, Shenzhen and Houston. Their activities In pursuing new concepts and products, are seamlessly integrated through an we consider their commercial viability, advanced web-based environment our customers’ needs, as well as how we offering 3D design tools and data can grow the Group’s knowledge pool management functions. and achieve process improvements. At the core of this system is a state-of-the- Our technology strategy is implemented art SmartMarine 3D technology, which systematically through Keppel Offshore allows our engineers worldwide to review & Marine Technology Centre (KOMtech) designs and drawings carried out across and three design and engineering arms the various engineering centres. specialising in solutions across the breadth of our business segments. This integrated global engineering hub Offshore Technology Development (OTD) enables us to work on projects with focuses on jackup rigs, rig components high effi ciency and offer our customers and critical equipment; Deepwater reliable services around-the-clock. This Technology Group (DTG), specialises not only improves collaboration and in semisubmersibles and other fl oating information-sharing across our global structures; while Marine Technology centres, but also greatly enhances Development (MTD) concentrates on design accuracy and effi ciency.

Technology & Innovation 53 Technology & Innovation

TECHNOLOGY REVIEW 2010 Systematic Approach to Technology Development Commercial viability has always been the Our strategy provides a balanced approach towards technology leadership that will sustain us in the long run. key focus of Keppel’s technology and innovation efforts. It forms the guiding principle for KOMtech in conducting the Construction Deepwater research and development (R&D) of new Process Rig Design Technology solutions and enhancements to products Jackup Design and processes.

echnology e T D Ship Design in ev Each year, a good sampling of the Project & IT r e a lo Technology M p vast research work by KOMtech is & m e e Critical r n Equipment showcased in its Technology Review o PROCESS COMMERCIAL t h IMPROVEMENT VIABILITY S Development s

t publication. Since the inaugural edition

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e in 2009, KOMtech has published a l

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e BUILDING NEEDS

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Specialised p variety of papers on concepts e Drilling &

Capability/Skill K targeted at improving the reliability, Development Production & Acquisition Technology effectiveness and sustainability of various offshore operations.

Technology Rig Systems The 2010 edition brought KOMtech’s Foresight multidisciplinary R&D expertise to bear through in depth studies into the design of installation and cable-laying vessels for offshore wind farms, and a Establishing a Global E-Hub slim drillship concept to support safe and effective operations for subsea wellhead intervention in deepwaters.

Engineering Knowledge Pool Spread Globally The Technology Review publication has received substantial interest from the offshore and marine industry, which includes our customers, professional

Global Application Helpdesk Engineering Support to Group Yards institutions and academia. Several of its papers, such as the Conceptual Development of a Slim Drillship, have also been republished in journals by the Society of Naval Architects and Marine Keppel FELS Engineering Hub Engineers Singapore.

Centralised Engineering Centralised Project Execution Data Control & Control

Keppel Offshore & Marine Ltd 54 Report to Stakeholders 2010 Technology & Innovation

5 Kogalym 6 West Ariel 8 FPSO Espirito Santo 4 KST 54 9 Magnolia 3 Yuri Korchargin 11 West Vencedor

2 Raissa 12 Floatel Superior

13 1 Varandey & Toboy Gold Star

14 P-51

10 SPAR 9 ETLP (up to 8,000 ft) (up to 6,000 ft) 11 8 FPSO SSDT 6 Jackup Rig 7 Fixed Platform (>4,000 ft) (up to 8,000 ft) 12 Semisubmersible (up to 500 ft) 1 Icebreaker (100 – 1,300 ft) Accommodation Unit 5 13 Semisubmersible 4 Harbour AHTS (up to 8,000 ft) Drilling Rig Tug (up to 10,000 ft)

14 3 Ice-class FSO Semisubmersible FPU 2 Submersible (<100 ft) (up to 10,000 ft) (<30 ft)

15 Drillship (up to 12,000 ft)

1 Icebreaker 3 Ice-class Floating Storage 4 Harbour Tug 6 Jackup Rig 7 Fixed Platform 9 Extended Tension 10 SPAR 11 Semisubmersible 12 Semisubmersible 13 Semisubmersible 14 Semisubmersible 15 Drillship – A support vessel that and Offl oading (FSO) Vessel – A small and powerful boat (up to 500 ft) (100 – 1,300 ft) Leg Platform (ETLP) (up to 8,000 ft) Drilling Tender (SSDT) Accommodation Unit Drilling Rig Floating Production Unit (up to 12,000 ft) forges passages through (<100 ft) which assists ships when – A self-elevating mobile drilling – A platform that provides (up to 6,000 ft) – A large cylindrical unit which (up to 8,000 ft) (up to 8,000 ft) (up to 10,000 ft) (FPU) – A compact and highly icy waters for oil tankers – An ice-resistant vessel docking, tying up to the piers unit that stands on its legs on accommodation facilities – A vertically moored fl oating supports a rig platform, and – A fl oater that operates – A fl oating unit that provides – A fl oating unit which can (up to 10,000 ft) effi cient unit with equipment that receives crude oil from and during departure the seabed during operation structure which is used for the anchors it to the seafl oor using alongside SPARs and Tension accommodation for crew perform drilling operations – A fl oating platform used suitable for well workover 2 Submersible a fi xed platform and offl oads – KFELS MOD VI 8 Floating Production offshore production of oil or gas cables and chains Leg Platforms, and is able to – SSAU™ 3600 at water depths of up to to produce oil and gas and exploration drilling (<30 ft) it to shuttle tankers 5 Anchor Handling Tug/ – KFELS A Class Storage and Offl oading maintain station keeping in – DSS™ 20NS 10,000 ft in deepsea – DrillDeep DS12000 – A mobile unit which sits Supply Vessel (AHTS) – KFELS Super A Class (FPSO) Facility water depths of up to 8,000 ft – DSS™ 20 – DeepDraft Semi entirely on the seabed – An offshore support vessel – KFELS B Class (>4,000 ft) – SSDT™ 3600E – DSS™ 38 during operation equipped for emergency – KFELS Super B Class – A ship-shaped production – DSS™ 51 stand-by/rescue, oil recovery – KFELS C Class facility used for the processing and fi re fi ghting – KFELS G Class and storage of oil or gas – KFELS N Class Technology & Innovation Keppel’s Jackup Revolution

Keppel launched into the world of rig Through a constant process of evolution, We believe that confi dence has to design in 1997, acquiring rights to Keppel’s proprietary jackup designs are be earned, and spare no effort in the Friede & Goldman (F & G) MOD being refi ned, adapted and enhanced to sharpening our competencies to back V and MOD VI jackup models. With meet the changing needs of drillers and the quality and performance of our rigs. the injection of Keppel’s own rich operators. Our proprietary rigs may be With a string of proven jackup designs construction experience and insights further customised to meet the specifi c under our belt, we continue to raise from customers in harsh environment requirements of each customer. For the benchmark for safe and effi cient operations, the two jackup models were instance, some units are reconfi gured operating solutions in virtually every further improved upon and evolved by with the “bigfoot” capability with larger offshore market. OTD into a series of robust solutions spud cans to cope with operations in that are deployed worldwide today. soft soil areas.

1997 1997 1998 g MOD V & g KFELS g KFELS MOD VI G CLASS A CLASS

F & G’s MOD V & Keppel FELS had secured a contract Building on its MOD V design, MOD VI universe class jackup from drilling contractor Sante Fe to Keppel FELS introduced the fi rst designs were acquired in 1997, build the prototype MOD VI universe KFELS MOD V A (KFELS A Class) and further improved upon. class jackup, Galaxy I, in 1989. This rig in 1998 to address the need for North Sea jackup was among the more capable rigs to operate in most technically advanced harsh deeper waters and perform deeper environment rigs of its day. The F & G drilling globally. MOD VI design was later acquired by Keppel FELS and enhanced to Delivered to Ensco International become the KFELS G Class. In 1997, Incorporated (present-day Ensco Sante Fe ordered a third unit of this plc) in 2000, ENSCO 101 became model to be constructed. the fi rst jackup rig based on this robust design and paved the way The KFELS G Class features a for many more rigs of its class to detachable cantilever and a skid-off be built. type drill fl oor, which enable the rig to achieve a wider range of drilling Dimensions: 246 ft x 222 ft x 30 ft positions with the support of a jacket, Leg Length: 544 ft and to work in tender-assist mode. Variable Deck Load: 19,357 kips Max Water Depth: 400 ft Dimensions: 244 ft x 250 ft x 35 ft Max Drilling Depth: 30,000 ft Leg Length: 560 ft Variable Deck Load: 10,400 kips (normal operating condition) Max Water Depth: 400 ft Max Drilling Depth: 30,000 ft

Technology & Innovation Keppel’s Jackup Revolution 55 2000 2003 2006 g KFELS MOD VB g KFELS SUPER g KFELS N CLASS (KFELS B CLASS) B CLASS

Keppel’s award winning KFELS B The KFELS Super B Class, an The diffi cult weather and fi eld Class design (formerly KFELS MOD enhanced version of the standard conditions of the North Sea call for V B) premiered in 2000, with the fi rst B Class, was an innovative answer a rigorous offshore rig solution that fi rm order from Chiles Offshore. This to the call for extreme drilling rigs can make drilling and production in modern design was launched to meet that can operate in deeper depths marginal fi elds more time and cost the demand for a cost-effective jackup and at higher temperature and effective. The KFELS N Class drilling rig that can withstand harsh climatic pressure levels. rig has been created specifi cally to conditions, and has since risen to meet this need. become the choice solution Featuring a combined drilling load for discerning drillers. of up to 2,700 kips, the KFELS The KFELS N Class is one of two Super B Class rig is capable of rig designs in the market capable The KFELS B Class jackup rig drilling deep wells both vertically of fulfi lling the exacting operating incorporates Keppel’s advanced high and horizontally. It includes a cantilever requirements of the Norwegian capacity jacking and self-positioning that can be skidded-off by 100 ft, sector of the North Sea. It is among fi x a t i o n s y s t e m s . I n 2 0 0 9 , i t w a s and a high capacity hook load of the world’s largest North-Sea bestowed the Prestigious Engineering two million pounds. compliant jackups, and has the Achievement Award from Institution dual capability of drilling and of Engineers Singapore for its ability To date, 33 KFELS B Class series rigs production. Keppel FELS has to provide maximum uptime with have been delivered for operations in delivered two of three such units reduced emissions and discharges. various parts of the world, and with on order to Rowan Companies. more to come. Dimensions: 234 ft x 208 ft x 25 ft Dimensions: 264 ft x 289 ft x 35 ft Leg Length: 517 ft Dimensions: 246 ft x 218 ft x 25 ft Leg Length: 568 ft Variable Deck Load: 8,939 kips Leg Length: 486 ft Variable Deck Load: 10,000 kips (normal operating condition) Variable Deck Load: 7,600 kips Max Water Depth: 400 ft Max Water Depth: 400 ft (normal operating condition) Max Drilling Depth: 35,000 ft Max Drilling Depth: 30,000 ft Max Water Depth: 350 ft Max Drilling Depth: 35,000 ft

Keppel Offshore & Marine Ltd 56 Report to Stakeholders 2010 2010 2011 g KFELS MPSEP g KFELS SUPER A CLASS

Keppel FELS’ Multi-Purpose Self-Elevating Platform In 2011, Keppel FELS introduced a much-anticipated (MPSEP) is a showcase of how Keppel FELS has been enhancement to its A Class design, the Super A Class. able to apply its market knowledge and technology This design debuts at an opportune time when the expertise innovatively to a variety of offshore applications. industry is looking for newer and higher performance In 2010, the design was chosen by the Seafox Group as assets, which offer improved safety and better effi ciency. the basis for a new-generation, wind turbine installation vessel that can withstand harsh offshore environmental Engineered to provide operators with a viable and conditions year round at a water depth of 65 metres cost-effective solution for harsh environments and cold in the North Sea. climate areas, this robust rig is well-suited to operate in various parts of the world including the UK, Danish Capable of working in extreme storm conditions and in and Dutch sectors of the North Sea. Keppel FELS has deeper waters than most other installation vessels, the secured orders to build a total of four new units from KFELS MPSEP provides for a longer operational window Discovery Offshore and Ensco. out at sea. This four-legged jackup features a large carrying capacity for up to 12 turbines, and is equipped Dimensions: 246 ft x 250 ft x 31 ft with dynamic positioning capability. Leg Length: 525 ft Variable Deck Load: 9,105 kips In addition to being well-suited for servicing offshore Max Water Depth: 400 ft wind farms, it also meets all the stringent operating Max Drilling Depth: 35,000 ft regulations of the offshore oil & gas industry, and can support a wide range of related activities such as accommodation, well intervention, maintenance, construction and decommissioning.

Dimensions: 378 ft x 164 ft x 32 ft Leg Length: 348 ft Max Water Depth: 213 ft

Technology & Innovation Keppel’s Jackup Revolution 57 Sustainability Report Highlights

Our drive for operational excellence entails conducting activities in a responsible and sustainable manner to promote the interests of people and the environment.

Sustaining Empowering Nurturing Growth Lives Communities (pages 60–69) (pages 70–77) (pages 78–85)

Our commitment to business People are the cornerstone of As a global citizen, we give excellence is underpinned our business. As an employer back to communities wherever by an unwavering focus on of choice, we are committed to we operate in a variety of HSE and prudent project and grow and nurture our talent pool areas spanning knowledge risk management. through continuous training and building and education, development to help our people social development and Through an ongoing process reach their full potential. environmental protection. of optimising resources and increasing productivity, We seek to develop a formidable We engage employees in we will continue to deliver and results-driven workforce contributing actively as change innovative projects with with strong leaders imbued agents to effect improvement strong value offerings and with our core values to take in their surroundings and in the quality to create value for the company into the future. lives of those around them. customers worldwide.

Keppel Offshore & Marine Ltd 58 Report to Stakeholders 2010 Sustainability Report Highlights 59 Sustaining Growth Productivity & Innovation

Keppel FELS We achieve high standards continued to share its best of delivery with constant practices in lean manufacturing improvements to quality and and project productivity through innovation. management with other companies in the MAXA circle in 2010.

Keppel Offshore & Marine Ltd 60 Report to Stakeholders 2010 REASSURING QUALITY During the year, we continued to upkeep high standards of quality across operations.

In August 2010, Keppel FELS was re-certifi ed with the ISO 9001 Quality Management System by Det Norske Veritas, and upgraded to the ISO 9001:2008 standard.

Our yards continue to be recognised by the industry for their strong commitment and performance in delivering high-quality products and services to customers. Keppel FELS was bestowed the highly-coveted Offshore Yard Award by Seatrade and the Achievement in Safety Award by Lloyd’s List.

Keppel Shipyard was lauded with its to strengthen leadership, streamline Keppel O&M’s annual iQC is a platform sixth consecutive Lloyd’s List Best procedures, as well as improve that encourages employees from Shipyard of the Year Award since 2005 recruitment and training practices. across the shipyards to come forward for continually meeting the needs of its with solutions and showcase their customers with high-quality solutions For its efforts in enhancing creative ideas. Many of the teams go that are cost-effective and safe. productivity and upgrading its on to compete and win awards in the capabilities, Keppel FELS was National iQC Conventions. As a recipient of the Manufacturing conferred the Cheaper, Better, Excellence Award (MAXA) in 2008, Faster (CBF) Model Partnership Award Keppel FELS’ teams garnered one Keppel FELS continued to share at the National Trades Union Star Award, seven Gold Awards its best practices in lean manufacturing Congress (NTUC) May Day Awards and six Silver Awards at the 2010 and project management with other (Institutional Category). National iQC Convention. companies in the MAXA circle. The yard participated in the MAXA In addition, overseas business units Keppel Shipyard, likewise, places 2010 lunch forum and hosted a tour such as Keppel FELS Brasil has great emphasis on the iQC. A group of of its facilities for the manufacturing implemented the Integrated Hull, trained iQC assessors are deployed to community. Outfi tting and Painting (IHOP) evaluate the in-house iQC conventions programme to improve the productivity each year. REINFORCING PRODUCTIVITY of hull blocks fabrication and assembly. The Productivity Improvement Steering This will shorten the time taken in The projects presented at the Committee driven at headquarters consolidating the entire hull including conventions have contributed directly to level formalises strategic plans and the associated system. the effi ciency of our operations, as well synergises productivity efforts across as cost savings. all the yards through a process of IGNITING INNOVATION active benchmarking. We drive continuous improvement and innovation through initiatives such as During the year, Keppel Shipyard the i-4-WSH, formerly known as Safety installed an 80-tonne fl oating crane Innovation Teams, Innovation Quality and two 36-tonne tower cranes to Circles (iQC), Quality Action Teams improve its workfl ow. Additionally, (QAT) and the eSHiP Programme A semi-automated pipeshop at the yard introduced the Back-To- (environmental, Safety, Health & Keppel Shipyard signifi cantly increases productivity and quality Basics concept as part of its strategy innovation & Process improvement). assurance in pipe fabrication.

Sustaining Growth Productivity & Innovation 61 Sustaining Growth HSE Excellence

Keppel Safety Ensuring a safe and healthy work Training Centre offers a wide environment for everyone is our range of safety training and foremost priority in striving for certification operational excellence. courses for marine workers.

Keppel Offshore & Marine Ltd 62 Report to Stakeholders 2010 Through sustained investments to Keppel O&M Safety Statistics improve infrastructure, processes and training, we aim to increase the safety quotient of our workforce, and build a robust HSE culture across all operations. AFR 1.3 0.37 0.37 0.35 0.29 ASR 207 187 110 83 105 As we journey towards an incident- AFR ASR free workplace, we align efforts 1.5 210 across our yards worldwide and make continuous improvements to our safety management system and programmes. 1.0 140 As a group, we invested over $17 million on safety training and infrastructure 0.5 70 in 2010. 0 0 Close partnerships with stakeholders 2006 2007 2008 2009 2010 including contractors, clients, industry * AFR – Refers to the number of workplace accidents per million man-hours worked. Figures members and regulatory bodies are a used are incident-based. key element of our strategy to eliminate * ASR – Refers to the number of industrial man-days lost to workplace accidents per million man-hours worked. workplace incidents. We believe that everyone has a role to play in protecting people, property and the environment. Through the Keppel Workplace Fortifying Our Safety Culture Safety & Health (WSH) 2018 strategy Following the introduction of the SAFETY LEADERSHIP introduced in October 2010, we are Safety Buddy Scheme in 2009, Keeping Abreast aligned with the Keppel Group’s efforts we expanded the number of buddy Our accident frequency rate (AFR) to further improve our safety practices groups, and placed greater emphasis improved from 0.35 reportable through four key thrusts: on accountability. In addition, workers accidents for every million man-hours are assigned safety mentors or worked in 2009 to 0.29 in 2010. As 1. Establish an integrated managers whom they can approach a result of two fatal cases during the WSH framework for guidance. The mentors serve as year, our Accident Severity Rate (ASR) 2. Implement an effective safety a direct avenue for workers to give increased from 83 man-days lost per management system feedback or report unsafe practices. million man-hours worked in 2009 to 3. Enhance safety ownership 105 in 2010. 4. Strengthen safety partnerships During the year, Keppel Corporation’s Board Safety Committee members We deeply regret the loss of these lives A global e-reporting portal was and our safety leaders conducted and have stepped up efforts and shared launched in tandem to allow all several site visits to facilities in the lessons learnt across the Keppel business units to inform of any Singapore and overseas. Group to prevent future incidents. incidents promptly. This portal helps to standardise incident reports and Safeguarding the Workplace To ensure that we meet the highest also acts as a sharing platform for best In managing a global workforce of international standards of process practices and lessons learnt. more than 40,000 employees and safety management, Keppel O&M subcontractors, we need to ensure adopted the International Safety Rating A cross-pollination programme that safety practices are systematically System (ISRS) audited by DNV. was also introduced to further align integrated into all work processes, HSE best practices across the Group. leaving no room for mistakes. Our yards also embarked on a Employees in key positions are self-assessment programme to seconded to other business units Daily safety briefi ngs are conducted develop a roadmap with concrete for a few months at a time to learn for all workers before work begins measures to improve their safety and share on safety practices. each day. On top of this, our project performance. Employees from across The best safety practices identifi ed managers hold Vessel Safety the group will be trained to conduct will be escalated and adopted at the Coordination Committee (VSCC) the assessments. Keppel Group level. meetings with representatives

Sustaining Growth HSE Excellence 63 HSE Excellence

1 2

1_ Training is the fi rst step to from the various trades to ensure Training Stewards ensure that our diverse workforce is aligned with the company’s complete alignment. Our managers Safety training is the fi rst step to safety policies. and customers also make regular ensure that our diverse workforce

2_ Keppel’s safety initiatives are led walkthroughs to monitor project sites hailing from different cultures by the top. Our management makes for safety compliance and to identify and countries are in line with the regular walkthroughs to identify and address hazards. and address safety hazards. company’s safety policies. A worker or subcontractor at Keppel O&M Our contractors and workers take clocks an average of 20 hours in ownership of safety by conducting safety training each year. monthly site inspections under the Contractors HSE watch group and In June 2010, we launched an Workforce Safety Council respectively. integrated safety training centre, At Keppel FELS, the Subcontractors which uses the latest equipment, Executive Council Safety Committee, simulations and methodologies to which consists of representatives equip our workforce with critical skills from different trade sections, meet up to work safely. weekly to discuss safety concerns and initiatives. The contractors’ supervisors FELT leadership training is one of are also appointed as safety leaders several courses offered at the Centre to help educate workers on safety where participants are taught how to procedures as well as exercise safety leadership to inspire enforce safety rules. others. Confi ned space safety, fi re fi ghting, height safety, forklift driving Targeting the key risk areas, Keppel and material handling, as well as O&M as a group embarked on efforts to a variety of other trade specifi c educate all workers on how to use their programmes, are also conducted safety harnesses properly when at the Centre. working at heights. Meanwhile, Keppel Shipyard customised a risk During the year, Keppel FELS held a management programme to mitigate fi ve-day safety training programme various hazards associated with for contractors’ supervisors to help working in confi ned spaces. enhance their risk management

Keppel Offshore & Marine Ltd 64 Report to Stakeholders 2010 and safety knowledge. About 600 supervisors were trained under this Safety Capability Coaching & Consultancy Programme in 2010. Keppel Safety Training Centre

Meanwhile, Keppel Shipyard’s Safety Promoter Training Scheme has equipped more than 26,000 workers The Keppel Safety Training Centre is an integrated health, with observation and intervention skills safety and environment (HSE) training hub designed to offer a wide range of safety training and certification courses, with on unsafe practices and environments. emphasis on both trade specific and broad-based skills for marine workers. Getting Our Message Across Complacency is the No.1 cause All our direct and subcontract workers will have to undergo of workplace accidents. Through training at the Centre before they can start work. The courses will imbue them with a strong safety mindset and a uniform level regular campaigns and programmes, of competencies across the board. we constantly communicate and emphasise the fundamental safety The Centre comprises a three-storey building equipped rules, and remind workers of their with classrooms, an e-learning zone, and a safety journey hall responsibility to stay vigilant as well as with multimedia and interactive training stations. look out for one another. Core competency and safety leadership development programmes, as well as Workforce Skills Qualifications courses To foster a pervasive safety culture certified by the Singapore Workforce Development Agency, and impart relevant safety competencies are some of the key training modules conducted by qualified, to its workforce, Keppel Shipyard full-time instructors at the Centre. launched its Safety Excellence 2015 The Centre also includes a six-level steel structure complex campaign in June 2010. The company built to simulate working conditions in the mid-section of a also sought to create awareness and tanker. This Mid-ship Module is used to provide hands-on educate the workers on ways to protect and scenario-based training for workers. Some of the key themselves from high-impact risk courses conducted include Confined Space Safety, Hotwork Assessment, Observation and Intervention Skills and Risk activities such as working at heights and Assessment. in confi ned spaces, among others. As at end-2010, more than 8,300 employees and In the same vein, Keppel FELS’ subcontractors’ workers received training at the Centre. 14th annual HSE excellence promotion campaign focused on working safely at heights. The programme which began in June, included interactive activities to raise safety awareness.

Safety campaigns are also customised across the spectrum of projects at our yards, based on the nature of work being carried out. For instance, at Keppel Shipyard, the focus for the FPSO Peregrino conversion project was on preventing eye injuries, while on the FPSO Okha, it was on safe commissioning.

Setting the Benchmark Our companies comply strictly with all applicable laws and regulations in the countries where they operate. All our direct and subcontract workers will have to undergo training at the Keppel Safety Training Centre before they can start work at Keppel’s yards. Additionally, we work to align all

Sustaining Growth HSE Excellence 65 HSE Excellence

business units with the same high standards of safety embraced by Keppel O&M.

In Singapore, we work closely with the Ministry of Manpower and the Workplace Safety and Health Council (WSHC) to raise safety standards of the offshore and marine industry.

We helped to equip over 500 local subcontractors with competencies to carry out their tasks safely, as well as aligned them with a strong commitment to create an incident-free workplace.

Our companies actively participate in national initiatives such as the bizSAFE programme. As bizSAFE partners, we provide tangible business 1 leverages or incentives to motivate our contractors and vendors to progress We also shared our safety projects, while Keppel Shipyard through the various levels of the management system with the took Silver and Bronze for its bizSAFE programme. oil and gas community as a Baby Turret and Unsafe Usage of platinum sponsor of the Drilling Hand Lamp projects. During the year, we helped our HSE Asia Pacifi c Conference & subcontractors to achieve a minimum Exhibition held in March 2010, During the year, Keppel FELS also won bizSAFE Level 3 standard and organised by the International its fi rst Lloyd’s List Asia Awards for continued to support them in advancing Association of Drilling Contractors. Achievement in Safety. to Level 5 with various training and skills-upgrading programmes. We also Winning Recognition Notwithstanding recognition from facilitated them in developing their own For its efforts, Keppel O&M was lauded the government and the industry, our risk and safety management systems. with ten WSH Awards from the WSH greatest reward is seeing everyone Council and the Ministry of Manpower return home safely from our yards at the As part of an ongoing sharing in July 2010. end of each workday. programme of best safety practices in the marine industry, Keppel Singmarine received a Silver RESPONSIBLE BUSINESS Keppel Shipyard and Keppel FELS Award for the fourth consecutive OPERATIONS hosted members from the Association year for its commendable WSH Although more energy is needed to of Singapore Marine Industries (ASMI) performance. We also garnered eight support expanding operations, we seek in a self-regulatory programme WSH Awards for various projects with to make the best use of utilities through known as Marine Industry Safety outstanding safety records. Additionally, infrastructural improvements and Engagement Team. Keppel FELS’ foreman, Sima Ram, was conservation efforts. singled out for his exemplary leadership We were a major sponsor of the in safety. In 2010, we invested some $8 million National Workplace Safety and Health in energy-saving equipment and Campaign 2010 for the third year in Our safety innovations were also infrastructure, which are estimated a row, contributing $100,000 at the recognised at ASMI’s 13th WSH to generate energy savings of some Keppel Group level. Taking the lead, Innovations Award ceremony during $8.9 million per year. Our efforts to senior management of Keppel Group the Marine Industry Convention in conserve energy include replacing came together with workers, union September 2010. Keppel Singmarine of less-effi cient equipment and leaders and clients to pledge their received Gold and Bronze for its encouraging and educating staff commitment to safety. Smart Arm and Universal Mobile Stool through awareness programmes.

Keppel Offshore & Marine Ltd 66 Report to Stakeholders 2010 2 3

1_Keppel O&M won 10 WSH We retrofi tted energy-effi cient Our yards continue to explore awards from the WSH Council and the Ministry of Manpower in 2010. lightings in the yards, plants engineering solutions and and offi ces, and installed motion energy-effi cient processes to 2_Dr Lee Boon Yang (third from left), Chairman sensors along corridors, toilets reduce emissions while increasing of Keppel Corporation, and and areas with less human traffi c. productivity and quality. We are Singapore Minister of Manpower, Mr Gan Kim Yong, view Keppel Our yards also took part in the also cultivating behavioural changes Singmarine’s ‘Universal Mobile EARTH HOUR campaign on through education and training Stool’, which won an industry award for signifi cantly improving 27 March 2010, during which to increase awareness and workplace ergonomics. all non-essential lightings were encourage the conservation

3_Keppel O&M’s workers switched off. of resources. took part in the EARTH HOUR compaign in 2010, during which all non-essential lightings were In 2010, we consumed about switched off in their dormitories. 1.1 million cubic metres of potable water and about 650,000 cubic metres of NEWater.

Potable water is used for drinking, general washing and supplying to vessels. NEWater on the other hand is used for testing purposes as well as cleaning and hydro jetting marine vessels and machinery.

During the year, we recycled over 90,000 tonnes of waste comprising ferrous scrap metals and grit, while disposing and incinerating about 100,000 tonnes of non-recyclable ones. At Keppel Shipyard, ferrous scrap metals are separated from general waste and sold to licensed recycling companies.

Sustaining Growth HSE Excellence 67 Sustaining Growth Business Continuity

Safety and Prudent business continuity security exercises are held regularly management prepares us to meet at Keppel O&M yards to enhance the challenges and succeed in our the effectiveness dynamic global environment. of the group’s action plans.

Keppel Offshore & Marine Ltd 68 Report to Stakeholders 2010 ENTERPRISE RISK MANAGEMENT At the execution stage, key risk BUSINESS CONTINUITY Keppel O&M Group adopts a holistic factors relating to cost, schedule, MANAGEMENT and systematic Enterprise Risk quality and health, safety and To address and manage potential Management (ERM) framework for environment are closely monitored threats and disruptions to the identifying, evaluating and managing to ensure that pre-emptive measures operations arising from matters such risks. The top management has are promptly implemented. The as the outbreak of epidemics, terrorism, oversight of the risk management emphasis is to ensure that projects natural calamities and damage to in the Group whereby key risks and are executed and completed on time, critical facilities, Business Continuity progress of signifi cant projects are within budget, safely and achieving Management (BCM) has been monitored and discussed regularly quality standards and contractual incorporated as part of the with them. specifi cations as defi ned in the ERM framework. contracts with the customers. During these meetings, corporate A BCM Committee was set up to look strategies are identifi ed and mitigating In 2010, the Group was exposed to a into developing action plans to mitigate actions are established as well variety of risks including fl uctuations in the threats with an objective to resume as closely monitored for their foreign currencies, tightened credit, normal operation within a targeted time effectiveness. These are then shared order cancellations and deferment of frame. Drills and exercises are with the individual business units and projects. The strong commitment in conducted regularly to test the departments to enable them to manage driving Group-wide ERM systems and effectiveness of the action plans. their signifi cant risks effectively. processes over the years has enabled Postmortem analysis is conducted with the Keppel O&M group to be better the aim of seeking improvements in At the operational level, risk equipped in managing this challenging action plans. management is integrated into the business environment. day-to-day business operations, to Throughout 2010, simulation exercises enable early risk detection for effective The Group continues to strengthen and drills were conducted at the management and forms an integral its risk-centric culture through various shipyards. For instance, oil pollution aspect of the department and project initiatives. These include the sharing drills were conducted at the quayside risk evaluation process. Prudent risk of best practices in project risk and dry-docks to test the yard’s overall management practices, which include management, project postmortem operational readiness and response. the effective management of foreign analysis and regular update of Table-top exercises were also carried exchange, credit and liquidity risks, country risk issues. Seminars and out for scenarios such as the drifting allow the Group to manage its fi nancial workshops are organised for the of ships and the damage of dock gates. risks effectively. project managers and engineers to At the end of all exercises, postmortem equip them with better understanding sessions were held where lessons A large proportion of the Group’s of different aspects of project learnt were shared to enhance the operations is project-based and management risks, especially those robustness of action plans. executed over an extended period of concerning contractual liabilities and time. To help manage the spectrum of project cash-fl ow management. The In particular, we conducted joint key risks throughout the project life, Group’s orientation programme for exercises with Singapore Civil Defence the Group adopts a standardised risk new employees is a platform used to Force to test the readiness under the assessment and monitoring process, communicate the Group’s ERM scenario of a fi re incident as part of with possible adaptations to suit methodology and practices to the the annual Company Emergency local environments. new employees. Risk management Response Team audit. Evacuation is one of the Key Performance drills for vessels in the drydocks were During tender stage, the team comprising Indicators incorporated in the annual also conducted regularly to get the expertise of different disciplines, identifi es performance appraisal of management employees and contractors ready and evaluates the risks associated with and senior staff to enhance risk for the mitigating procedures in the the potential projects. Project risks are ownership and accountability. Monthly event of emergencies. Additionally, we addressed to establish mitigating actions country risk reports are also circulated simulated an IT infrastructure failure to for solutions. The evaluation process to keep the key management within the test the data recovery during downtime. takes into consideration whether Group’s Group updated with the changes in the All BCPs are reviewed, tested and business objectives are met and the political and economic situations for refi ned continuously to enhance Keppel project risks identifi ed are manageable. taking appropriate actions. O&M’s overall operational resilience.

Sustaining Growth Business Continuity 69 Empowering Lives People Cultivation

United by our core By constantly developing values, Keppel O&M employees and energising our people, are an effective and synergistic we sustain a robust workforce team both at work which delivers increasing value and at play. to our customers worldwide.

Keppel Offshore & Marine Ltd 70 Report to Stakeholders 2010 1_Our eight core values are A strong sense of continuous global team serving customers from represented by icons symbolising harmony, productivity, unity improvement runs throughout strategic locations across 16 countries. and strength. Keppel O&M, driving us to attain excellence in every aspect of our At Keppel O&M, all employees are operations. We believe that an united by strong work ethics embodied unwavering commitment to support in our shared core values – eight and develop our people propels the hand icons symbolising harmony, Group to new standards of achievement, productivity, unity and strength. and this leads us to adopt a holistic Wherever they are, our people are approach in fortifying our human capital. distinguished by the Can Do! spirit, integrity and a strong passion In 2010, we invested a total of for service excellence. $16.3 million in the training and development of our employees To help new employees quickly fi nd worldwide, building up their skill their footing, we make extensive efforts sets to meet the ever-changing to assimilate them into our multicultural needs of our industry. workforce. Through the mentorship scheme, new employees are assigned As part of the dynamic working to more experienced staff who impart environment at Keppel O&M, we provide industry knowledge and functional skills, various opportunities for employees as well as the company’s values to them. to hone and grow their abilities. These include job rotations, overseas postings In 2010, about 80 new staff members in and assignments and special projects. Singapore completed their mentorship Through structured programmes for programme. During the year, we expanding knowledge and refi ning also continued to run the Executive technical and interpersonal skills, and Mentoring Workshop to equip our well-designed work scopes, we empower senior offi cers with the necessary skills employees at all levels to give their best to to guide their mentees effectively. create value for our customers. ADVANCING KNOWLEDGE BUILDING A WINNING TEAM AND SKILLS We recruit people from all backgrounds The specialised expertise required and nationalities. The rich diversity in the offshore and marine industry of our workforce makes us a truly takes years to hone. With this in mind,

1

Manpower Distribution by Country 2010 (%)

Singapore 47 USA 2 Philippines 8 Middle East 5 Brazil 29 Europe 2 Central Asia 4 Others 3 Total 100

Empowering Lives People Cultivation 71 People Cultivation

1 2 we introduced a comprehensive Experiences gained through the Programme organised by ASMI, WDA Management Traineeship Scheme MTS have also provided the basis and National Trades Union Congress (MTS) back in 1986, to give our new for other trainee programmes to take (NTUC). In 2010, eight candidates were recruits a good head start in developing fl ight at several of our operating units selected to embark on the two-year their capabilities and careers. overseas. For example, Keppel FELS training programme in Keppel yards. Brasil’s BrasFELS yard has set up a Upon completing the programme, Targeted at fresh graduates, this two-year Trainee Engineers Scheme to provide these employees will assume MTS programme has helped to achieve young engineers with a well-rounded supervisory roles in trades such as our objective of developing competent understanding of shipyard operations, welding, painting and scaffolding. and resilient cohorts of talents and and expose them to the work of leaders for the company. In fact, many different departments through job As a learning organisation, we continued current members of our management rotations. About 50 engineers are to support employees keen to pursue team were earmarked and groomed currently undergoing this two-year further studies through the Employee through this scheme. programme in Brazil. Development Scheme. In 2010, we sponsored 24 outstanding employees for Today, the MTS has evolved into Meanwhile, Keppel O&M Group Training academic programmes ranging from the one of Keppel O&M’s most rigorous Centre continues to play a pivotal role in Higher National ITE Certifi cates (NITEC) talent development programmes imparting and upgrading the technical to Master degrees. and is accredited with the Institute skills of our employees. Courses of Marine Engineering, Science and conducted at the Centre include core GROOMING LEADERS Technology (IMarEST), an international technical skills and safety training We offer a variety of opportunities body for marine professionals. Upon for new hires, and the Modular Skills for high potential employees to hone completing the MTS, candidates with Training (MOST) programmes, which their skills and be developed for the relevant academic qualifi cations enhances the technical competencies leadership positions. and work experience can register as of supervisors and foremen. More an Incorporated Engineer or Chartered than 200 employees have successfully Keppel College serves as the main artery Engineer with IMarEST. completed the MOST programme since for leadership and executive development it was implemented in 2006. programmes at the Keppel Group level. To date, the MTS has trained over Targeting three tiers of talent – young 650 staff members. Another 81 fresh To help build a pool of supervisors leaders, middle management and senior graduates in Singapore were accepted for the marine industry, we also management – Keppel College aims into this established programme in 2010. continued to support the Super V to educate, empower and energise our

Keppel Offshore & Marine Ltd 72 Report to Stakeholders 2010 talents to help them advance to the next level of success.

Keppel College partners the Nanyang Designing Jobs to Fit Business School in customising programmes for our employees. Through workshops such as Global Young Leaders Programme (GYLP) To enhance the vibrancy of our workplaces, we periodically and Global Advanced Management review our employees’ work scopes with the aim of increasing both the quality of their work life and productivity levels. Programme (GAMP), we convene and engage junior to middle management At Keppel Singmarine, workers are trained to perform a wider representatives worldwide on global range of tasks on top of their own specialty areas. This not only business issues. Close to half of the introduces variety to its employees’ jobs, but also gives the yard GYLP and GAMP participants are more flexibility in deploying its manpower. employees based overseas. Over at Keppel Shipyard, employees who carry out cable glanding have been trained to handle more sophisticated cable In February 2010, Keppel College ran termination tasks as well. Workers now enjoy a bigger role in the third installation of the Improving the the execution of projects as the yard optimises its productivity People Quotient for Leaders workshop. and use of resources. The programme is targeted at newly As a Group, we also redesign jobs and working conditions to promoted managers and middle better suit the mature employees in our workforce. management who are responsible for the selection, appraisal and grooming By matching our employees to the skills required by the jobs, of their subordinates. and improving the flow between related tasks, we add variety to routine work and energise our people with new challenges. On top of being more engaged at work, our employees are High potential employees are also also reporting greater job satisfaction and a heightened sense selected for job rotations and exposed of ownership. to different aspects of our global operations. More than 80 percent of our general managers have worked in at least three departments, including production, engineering, commercial and project management. Many of them have also served in various overseas postings at our global yards.

RETAINING EXPERIENCE Long-serving employees embody a wealth of accumulated experience and knowledge, which Keppel O&M

1_Senior management and key process owners are involved in the development of Keppel College programmes to drive talent development.

2_Keppel O&M Group Training Centre is a centralised platform for We continuously review job content and responsibilities to promote high enhancing our employees’ satisfaction and productivity among employees. technical and specialised skills.

Empowering Lives People Cultivation 73 People Cultivation

leverages to stay ahead of the curve. Beyond contributing to the growth of the company in their functional roles, Accelerating Learning senior employees also serve as mentors to younger staff, passing on their rich experiences, skills and our core values.

With vast opportunities to participate in multi-disciplinary and Each year, Keppel O&M business units cross-border projects, job rotations and overseas assignments, host Long Service Award Ceremonies to our young talents rapidly add to their global knowledge and refine their business acumen. honour the unwavering dedication and contributions of employees. In 2010, 445 Keppel Young Leaders employees in Singapore were recognised Inaugurated in July 2010, Keppel Young Leaders serves as for their years of loyal service to the a platform for high potential employees to not only engage Keppel O&M Group. in high-impact projects but also network and draw on each other’s experiences. In the same year, we rehired a total Thus far, the Young Leaders have made headway with projects of 80 employees in Singapore who covering areas such as business process and productivity were above the retirement age of 62. improvement, knowledge management, pooling of technology In the selection of older workers for re- assets, business analysis and community outreach. employment, we consider factors such as In 2011, the Young Leaders concluded a productivity the company’s requirements, the number enhancement project for Keppel O&M, which involved a study of jobs available and the candidates’ trip to survey some of Korea’s leading shipyards and attended performance. More importantly, they the 2010 Marine Tech Korea Exhibition in Changwon city. must be medically fi t to continue working. Takeaways from the study trip were also shared with various Keppel O&M companies in Singapore. Older employees are usually re-engaged Keppel O&M Financial Management Programme on a full-time contract basis. They may The Keppel O&M Financial Management Programme (FMP) either perform the same job functions was launched in October 2010 to advance the functional or be rotated to other roles, depending competencies, as well as analytical and managerial skills of our finance personnel. These skills will enable them to take on on the company’s needs. Wherever larger responsibilities both locally and overseas. possible, we seek to create a match between the job requirements and the FMP participants are assigned to mentors from a broad range interests of our employees. of backgrounds, including finance, audit, human resources and project management, to help the former develop a holistic perspective of running international businesses. Presently, Our efforts to recognise and retain 11 mentors and 14 participants are enrolled in the programme. long-serving employees will enable us to preserve a rich body of experience and expertise, which will be used to nurture younger generations of Keppelites.

PROMOTING WELLNESS During the year, Keppel O&M rolled out an array of initiatives to promote holistic living and personal wellness.

To encourage a healthy diet, fruits are distributed to employees monthly and health food bazaars are held regularly at the work premises. KYL serves as a platform for high potential employees to not only engage in Additionally, medical examinations critical discussion and high impact projects but also network and draw on each and health workshops are frequently other’s experiences. organised for employees.

Keppel Offshore & Marine Ltd 74 Report to Stakeholders 2010 1 2

1_Wherever they are, our people known as Keppelites, are distinguished by the Can Do! spirit and a strong passion for service excellence.

2_Beyond contributing to the growth of the company in their functional roles, experienced employees also serve as mentors to younger staff.

Empowering Lives People Cultivation 75 People Cultivation

1 2

Meanwhile, the Keppel Recreation Club highly-subsidised housing and staff welfare, Mr Tong Chong Heong, (KRC), continues to bring employees transportation to and from work. CEO of Keppel O&M, and Mr Abu together for sports, recreational and Bakar Mohd Nor, CEO of Nakilat- community activities. KRC helps We were among the fi rst companies Keppel Offshore & Marine, were thousands of members keep fi t and in Singapore to provide subsidised conferred the Medal of Commendation de-stress by initiating regular activities dormitories for foreign workers. (Gold) and Medal of Commendation such as dragon-boating, fi shing trips Catering to over 7,000 workers, our by the National Trade Union Congress and overseas excursions. three dedicated lodges offer modern (NTUC) respectively. amenities such as gyms, convenience Through annual company-wide stores and banking and IT facilities NTUC also conferred the Comrade activities such as the Keppel Games, within their dormitories’ compounds. of Labour Award to Mr Mohamed Keppel FELS’ ACTIVE DAY and sports Yusop Mansor, President of the festivals in Singapore and abroad, we Various recreational activities are Keppel Employees Union, who works help to promote wellness, teamwork organised regularly at these lodges closely with our management to care and camaraderie among employees. to encourage harmonious living for employees. and team bonding. Additionally, For their commendable Workplace our management team and union During the year, negotiations Health Programmes, Keppel FELS representatives visit the dormitories on the collective agreements and Keppel Shipyard received top regularly and hold dialogue sessions between Keppel Shipyard and honours from the Health Promotion with the workers to better Keppel Employees’ Union (KEU), Board at the Singapore HEALTH Award understand their needs. and Keppel Singmarine and the Ceremony 2010. Shipbuilding and Marine Engineering FORTIFYING UNION RELATIONS Employees’ Union (SMEEU) concluded INTEGRATING FOREIGN WORKERS During the year, we continued to smoothly, refl ecting the mutual trust Foreign workers constitute a fortify the good relationships with and understanding between the sizeable part of our workforce in our unions, working hand in hand managements and unions. The Singapore. To help our new workers to enhance labour productivity and two new agreements are valid for assimilate into their new living employee welfare. three years, from 1 July 2010 to environment here, we extend a 30 June 2013. $700 cash advance to each person For their signifi cant contributions upon arrival, and provide free in-house towards maintaining harmonious medical consultation, as well as industrial relations and championing

Keppel Offshore & Marine Ltd 76 Report to Stakeholders 2010 3 4

1_Mr Mohamed Yusop Mansor, President of the Keppel Employees Union, was conferred the Comrade of Labour Award during May Day 2010.

2, 3, 4_Workers living at our subsidised dormitories get to enjoy various recreational activities within a conducive living environment.

Empowering Lives People Cultivation 77 Nurturing Communities Community Development

We encourage As a resilient industry partner and employees to become corporate citizen, we take an active responsible citizens with a interest and ownership of the genuine concern sustainable development of our for others through active corporate global industry and communities. voluteerism.

Keppel Offshore & Marine Ltd 78 Report to Stakeholders 2010 Keppel co-organised the 25th Chua With an expanding presence in The Keppel Professorship also conducts Chor Teck Memorial Lecture, where Professor Sir Eric Ash, a member of 16 countries, we take an active interest an annual public lecture that brings Keppel Technology Advisor Panel, in the sustainable development of our together both aspiring engineers and spoke on the evolution of nuclear power and its applications to global industry and the communities seasoned professionals to discuss and maritime activities. where Keppel is present. share insights on the latest offshore and marine innovations and trends, among FORTIFYING OUR INDUSTRY other current topics. At the 7th Keppel Continuous efforts in developing O&M Lecture, the Guest Speaker talents and technologies have, over Christopher Steane, Global Head of the years, positioned Keppel O&M for Structured Finance of ING Commercial market leadership and equipped it with Banking, discussed the offshore oil the competencies to offer high-value and gas market’s fi nancing needs and solutions to customers worldwide. funding sources. He also touched on the variables fi nanciers examine in gauging As we progress on our global growth the potential of a project. path, we also seek to share our insights and resources to ferment new ideas Adding to the breadth of industry sharing and cultivate expertise and people platforms, we organised two instalments to advance our industry, as well as of the Chua Chor Teck Memorial promote Singapore as an International Lecture jointly with the Society of Naval Maritime Centre. Architects and Marine Engineers of Singapore. The lectures sought to Growing a Knowledge Reservoir promote a multi-faceted understanding During the year, we continued to of the offshore and marine sector, and support several long-term initiatives touched on strategies for developing for knowledge building such as the a global maritime knowledge hub, Keppel Professorship at the National as well as nuclear energy applications University of Singapore (NUS), for maritime activities. through which we help to jumpstart research projects and encourage Connecting the Global Industry the development of new offshore Through active participation in technologies. several international conventions,

Nurturing Communities Community Development 79 Community Development

1 2

1_Keppel O&M organises yard we led Singapore’s maritime cluster in partnership opportunities, as well as visits for youths to raise their awareness of the Offshore and showcasing the nation’s capabilities business strategies and best practices. Marine industry and help them in to the world. their career decisions. Growing the Talent Pool 2_Employees from Keppel At the Pareto Oil & Offshore Conference The offshore and marine sector’s Batangas joined a walk-for-a-cause activity to help raise funds for in Oslo, Norway, we profi led our long-term success is underpinned by education for out-of-school youths. technology expertise alongside other the availability of skilled talents. As a international offshore oil and gas people developer, we look not only into companies and service providers. We nurturing our own workforce, but also also participated in the annual Offshore future generations of talents for the Technology Conference in Houston, greater industry. Texas for the 24th year running, and as part of the Singapore Pavilion. During the In 2010, we continued to provide year, Keppel FELS also participated in a early industry exposure for aspiring trade show spearheaded by the Vietnam entrants, offering internships for about Oil and Gas Group in Hanoi, Vietnam. 200 students from various local and overseas institutions. We also worked As Brazil’s foremost offshore and with the likes of ITE College Central, marine solutions provider, Keppel FELS Ngee Ann Polytechnic, Singapore Brasil contributed to vibrancy of the Polytechnic (SP), National University Rio Oil and Gas Expo and Conference, of Singapore (NUS) and Nanyang as a key exhibitor. Mirroring efforts Technology University (NTU) to provide to grow business ties between Brazil yard visits and career talks for their and Singapore, we led as a Strategic students. Similarly in the Philippines, Sponsor for the 7th Latin Asia Business Keppel Batangas and Subic Shipyard Forum organised by International worked with various universities in Enterprise Singapore. Well-attended by Manila and Batangas to introduce the key business leaders and government offshore and marine industry and share offi cials from Latin America and Asia, on the career opportunities available. the annual forum seeks to strengthen economic interactions between the two Joining hands with industry continents, addressing investment and associations to help youth rediscover

Keppel Offshore & Marine Ltd 80 Report to Stakeholders 2010 1 2

1_Some 900 young particpants, including 13 teams from Keppel, took part in the four-hour Amazing Maritime Race, supported by Keppel O&M.

2_Employees of Keppel FELS Brasil worked tirelessly to help provide relief to the victims of the landslides at Ilha Grande Island of Angra dos Reis.

Nurturing Communities Community Development 81 Community Development

Proceeds from Keppel AmFELS’ Singapore’s maritime heritage, we apprenticeship opportunities to UTB’s annual charity golf tournament will be used in aid of charities, sponsored the Amazing Maritime Race drafting and engineering students, and education programmes and which drew over 900 participants. working with several high schools to community projects. provide welder training programmes. On top of our in-house scholarships, we partnered the Association of Singapore ENRICHING OUR COMMUNITIES Marine Industries (ASMI) to provide As an active member in our global six industry scholarships to students communities, we encourage employees pursuing technical or engineering to champion and participate in causes courses, as well as offered book that benefi t people from all walks, prizes to students from SP, NTU and be it economically, socially Newcastle University. or environmentally.

The Keppel Credit Union distributed Supporting the Less Privileged 36 book prizes while the Keppel FELS In early 2010, our employees at Multi-Purpose Co-operative Society Keppel FELS Brasil rallied around the gave out 43 bursary awards and 16 landslide victims of Ilha Grande Island education grants. in Angra dos Reis. A workboat and a barge were swiftly deployed from our Our unions also played an active role yard to transfer search-and-rescue to encourage learning; they gave equipment to the island, while our out a total of 150 bursary awards, employees donated basic necessities scholorships and education grants and helped in the distribution of relief during the year. supplies. We also joined hands with the local government to refurbish Over in the US, Keppel AmFELS four buildings which were used to continued to offer engineering accommodate some 140 families scholarships through the University of displaced by the landslides. Texas at Brownsville (UTB) and Texas Southmost College (TSC). Keppel In addition, Keppel FELS Brasil AmFELS also offers hands-on learning continued to care for the less fortunate experiences for youths by giving senior citizens in its community,

Keppel Offshore & Marine Ltd 82 Report to Stakeholders 2010 organising employee volunteers to bring cheer to the O Bem Querer A Casa do Idoso (Home for the Aged) in Japuiba, Rio de Janeiro. Corporate Volunteerism

Since 2000, Keppel AmFELS and its employees have contributed more than US$3 million towards Through the Keppel Volunteers programme, we encourage all funding programmes for youths, and employees to get hands-on in contributing to the community. Since its inception in 2000, Keppel Volunteers has been driving equipping adults and families with regular activities in reaching out to individuals and groups, basic life-skills through the United Way including social institutions and non-profit organisations. of Southern Cameron County. Through its annual Charity Golf Tournament, Beyond fund raisers, Keppel Volunteers holds monthly activities Keppel AmFELS raised US$80,000, for Keppel’s adopted charity, the Association for Persons with Special Needs (APSN). In 2010, Keppel Volunteers’ organised a which was channelled towards various wide variety of programmes exposing APSN students to the community projects and in support performing arts and animation, among others. APSN students of education. were also roped in by the Keppel Volunteers for the Dover Park Hospice SUNDay Walk to raise awareness and garner To empower the young people donations for the terminally ill. of their community, employees from Additionally, Keppel Volunteers facilitates a monthly Keppel Batangas joined in the Alay home maintenance programme where Keppelites assist Lakad initiative, a nation-wide effort senior citizens of the Moral Senior Activity Centre with their to raise education funds for out-of- domestic chores. school youths. In December, Keppel Volunteers organised the third Keppel Group Blood Donation Drive and collected a total of 485 Meanwhile in Bulgaria, Keppel FELS packets of blood from across Keppel’s facilities. During the Baltech employees initiated a charity year, Keppel Volunteers was bestowed the Bloodmobile event for an orphanage in the Varna Organisers Merit Award from the Singapore Red Cross (SRC) region. On top of donating new for its significant contributions to the Singapore Blood Bank. clothes, toys and educational materials, Keppelites also spent quality time with the children.

For their unwavering support of the less fortunate in Singapore, our business units were recognised by the Community Chest during the year. Keppel Singmarine received the Pinnacle Award and SHARE Platinum Award, while Keppel FELS was conferred the Platinum Award and Keppel Shipyard the Gold Award. In addition, our employees have also been pledging a part of their monthly income to charity on a regular basis.

Uniting Cultures We seek to share our core values of a global mindset, teamwork and people development as we nurture vibrant communities. Through our support of artistic performances and Keppel Volunteers brought smiles to underprivileged children by accompanying them to Underwater World Singapore on Children’s Day. sporting events, we provide multiple

Nurturing Communities Community Development 83 Community Development

1 2 platforms to advance social harmony intimately woven into other aspects of Meanwhile in the Netherlands, and cultural exchange. Brazilian society, from the arts to the Keppel Verolme in Rotterdam daily lives of people. encouraged its employees to adopt In furthering the cultural exchange eco-friendly transportation to and from between Asian and Latin American In encouraging a spirit of work. Employees are encouraged to countries, we sponsored the Festival sportsmanship, we champion the commute on electric bikes or scooters Mexicano organised by the Mexican SAFRA Keppel Quadthlon as the title in place of cars to help ease traffi c jams Embassy of Singapore. Held in sponsor for the fourth year running. and the toll on the environment. celebration of the bicentennial Comprising swimming, running, independence of Mexico and the cycling and skating events, the centennial of the Mexican revolution, annual Quadthlon strengthens mental this festival featured an array resilience as it promotes an active of gastronomic events, cultural lifestyle for people of all walks. performances, artistic exhibitions and a fi lm festival, among others. Protecting the Environment In Singapore, we continued to support During the year, we presented the the global climate change movement Grammy Award-nominated songbird, Earth Hour. For one hour on 27 March, Bebel Gilberto, in Singapore for the Keppel’s various facilities powered third year in a row. Held in April 2010, down non-essential lights, including this latest sell-out performance at the at our Singapore yards and workers’ Esplanade promoted an appreciation dormitories. and understanding of Brazilian arts and culture among the local audience. Our employees also continued to support the coral nursery project off the We were also a key sponsor of the island of Pulau Semakau to help sustain month-long exhibition Football: The the marine diversity of its waters. Over Brazilian Passion organized by the in the Philippines, Keppel Batangas Brazilian Embassy in Singapore. together with its subcontractors ` Set up at the Atrium@Orchard, the help clear debris and litter along exhibition offered a glimpse into Brazil’s Batangas Bay during the annual football culture and how the sport is Coastal Clean-up Day.

Keppel Offshore & Marine Ltd 84 Report to Stakeholders 2010 3 4

1_Keppel Verolme’s very own scooter squad doing their part for the environment by reducing their fuel consumption.

2_Keppel Batangas cleaned up litter and debris along Batangas Bay as part of the efforts to protect the environment.

3_Committed to promoting an active lifestyle, Keppel O&M resumed its role as the title sponsor of a quadthlon for the third time.

4_We were a key sponsor of the month-long exhibition Football:The Brazilian Passion organised by the Brazilian Embassy in Singapore, which offered a glimpse into Brazil’s football culture.

Nurturing Communities Community Development 85 Global Network Yards & Offices

Headquarters Singapore Harnessing the synergy of 20 yards Bulgaria Azerbaijan China Offshore & Marine worldwide keeps us Near Market, Keppel FELS Baltech Caspian Shipyard Keppel Nantong Shipyard Azerbaijan Offshore & marine Company Builder of offshore support Brazil engineering company Builder & repairer vessels & tugboats China Near Customer. of rigs & ships Keppel FELS Engineering Indonesia Shenzhen The Netherlands Baku Shipyard, LLC Japan Builder & repairer Offshore & marine engineering Kazakhstan Keppel Verolme of offshore support company Norway The most established offshore vessels and tankers Qatar & marine yard in Europe Singapore Vietnam The Netherlands Kazakhstan Keppel FELS (Vietnam) Norway The Philippines Keppel Kazakhstan United Arab Emirates Keppel Norway Offshore engineering Japan USA Provider of offshore & construction facility & marine-related Regency Steel Japan Engineering / engineering services Manufacturer of large, R&D Centre Qatar high-quality steel structures Bulgaria Nakilat-Keppel China Offshore & Marine India Repairer of vessels up to Singapore ULCCs (operational USA in 4Q 2010)

Representative Offi ces United Arab Emirates Australia Arab Heavy Industries USA Repairer & builder of small Vietnam to medium-sized vessels

Marine Services Singapore India Keppel FELS Offshore and Engineering Services Mumbai Offshore & marine USA engineering company Keppel Offshore & Marine USA Solution provider for offshore structures Keppel AmFELS Best-equipped offshore yard The Philippines in the Gulf of Mexico Keppel Philippines Marine Inc. FloaTEC, LLC Comprehensive solutions provider Solution provider for fl oating for marine and offshore projects production units Keppel Batangas Shipyard Keppel Marine Agencies Repairer & builder of small to International, LLC medium-sized vessels & offshore fabrication facility Brazil Singapore Keppel Subic Shipyard, Inc Keppel Offshore & Marine Keppel FELS Brasil/ Provider of shiprepair, conversion (Headquarters) BrasFELS & construction solutions Largest & best-equipped Global leader in offshore Offshore Technology offshore yard in the & marine Development Southern Hemisphere Keppel FELS Designer of jackup rigs & critical equipment Keppel Singmarine Brasil World leader in design & Builder of offshore support construction of mobile offshore Deepwater Technology Group vessels & tugboats structures Designer & developer of Keppel Shipyard deepwater semisubmersible Leader in the repair & solutions conversion of all kinds Marine Technology Australia of vessels Development Keppel Prince Engineering Keppel Singmarine Designer of offshore support vessels & tugboats Leading builder of offshore Indonesia support vessels & tugboats Asian Lift Bintan Offshore Specialist for heavy lifts KOMtech Offshore fabrication facility R&D Centre for new Keppel Smit Towage technologies and processes Coastal towage solutions provider

Keppel Offshore & Marine Ltd Global Network 86 Report to Stakeholders 2010 Yards & Offi ces 87 Global Network Facilities

Type Dock capacity Berthage Outfi t quay Capacity (dead Size Length Draft Building berth Length Depth weight tonnes) (metres) (metres) (metres) (capacity) (metres) (metres) Singapore Keppel FELS Pioneer Yard Admiral Dock Drydock 400,000 380 x 80 380 13 Berthspace 1,400 8 – 10 Pioneer Yard II Berthspace 350 4.5 – 6 Shipyard Road Berthspace 500 4.5 Crescent Yard Berthspace 740 6 Keppel Shipyard (Tuas) 2,437 Tuas Dock Drydock 360,000 350 x 66 6.6 Raffl es Dock Drydock 330,000 355 x 60 6.6 Temasek Dock Drydock 150,000 301 x 52 7.4 Temasek Pier East Berthspace 280 7.2 Finger Pier West Berthspace 350 9 Finger Pier East Berthspace 370 8.5 Raffl es Pier West Berthspace 430 8.5 Raffl es Pier East Berthspace 230 6.1 West Quay Berthspace 380 7.1 South Quay Berthspace 177 8 Raffl es Dock Entrance Berthspace 220 7.1 Keppel Shipyard (Benoi) 1,163 Drydock No. 1 Drydock 300,000 350 x 60 Drydock No. 2 Drydock 170,000 300 x 60 Landing Quay 100 5 Quay No. 1 217 7 Quay No. 2 352 10 Quay No. 3 270 8 Quay No. 4 224 7 Keppel Shipyard (Gul) 530 FD No. 1 Floating Dock 14,000 lifting 192 x 32 FD No. 2 Floating Dock 5,000 lifting 114 x 27 North Quay 1 Berthspace 177.5 5 North Quay 2 Berthspace 193 6.5 North Quay 3 Berthspace 160 6.5 Keppel Singmarine Drydock in Benoi 5 Drydock 5,000 105 x 18.5 Building Berth in Benoi 15 Slipway 225 x 70 Building Berth in Benoi 5 Slipway 120 x 27.5 Wharf in Benoi 5 Berthspace 60 5 Azerbaijan Caspian Shipyard Company Yusif Ibrahimov (Hull 901) Floating Dock 15,000 128 x 74 6.5 Floating Dock (Hull 953) Floating Dock 5,000 124.8 x 23.3 6.5 Floating Dock (Hull 806) Floating Dock 4,500 124.8 x 21 6.5 Jetty 3 400 6.5 Jetty 4 100 6.5 Brazil Keppel FELS Brasil (BrasFELS Yard) Drydock Graving Dock 125 x 70 Slipway No. 1 Slipway 35,000 174 x 30 Slipway No. 2 Slipway 150,000 310 x 45 Slipway No. 3 Slipway 185 x 70 Finger Pier East Outfi t Quay 350 12 Finger Pier West Outfi t Quay 350 11.5 Outfi t Pier East Outfi t Quay 300 6 – 7 Outfi t Pier West Berthspace 120 7 – 8 Slipway 2 Pier Berthspace 80 8 – 9 Slipway 3 Pier 1 Outfi t Quay 80 9 – 10 Slipway 3 Pier 2 Outfi t Quay 80 9 – 10

Keppel Offshore & Marine Ltd 88 Report to Stakeholders 2010 Type Dock capacity Berthage Outfi t quay Capacity (dead Size Length Draft Building berth Length Depth weight tonnes) (metres) (metres) (metres) (capacity) (metres) (metres) China Keppel Nantong Shipyard 400 3,000 T 220 6 Kazakhstan Keppel Kazakhstan LLP North Yard Launching Way 220 x 100 4.5 Load-out Quay 243 4.5 Berth space 488 4.5 The Philippines Keppel Subic Shipyard, Inc Pacifi c Dock Graving Dock 550,000 550 x 65 C Quay 279 9 E1 Quay 351 9 E2 Quay 312 9 Keppel Batangas Shipyard, Inc. President Dock Graving Dock 50,000 200 x 38 Ship Lift System Lift Platform 20,000 172 x 28 Dry Berth: 8 off Dry Berth: 8 off Pier No. K1 100 x 2 9 Pier No. K2 100 x 2 9 Alongside FD No. 1 100 8 Pier Block No. 1 183 9 Pier Block No. 2 160 9 Pier Block No. 3 70 8 Pier Block No. 4 155 9 The Netherlands Keppel Verolme 1,600 9 – 12 400 9 – 12 Dock No. 5 Graving Dock 65,000 230 x 35.5 9.8 Dock No. 6 Graving Dock 130,000 275 x 41 10.6 Dock No. 7 Graving Dock 500,000 405 x 90 12.2 Qatar Nakilat-Keppel O&M 2,400 Dry Dock No. 1 Drydock 350,000 360 x 66 12.0 Dry Dock No. 2 Drydock 450,000 400 x 80 12.0 6 Quays 2,400 United Arab Emirates Arab Heavy Industries Al Zora Drydock Graving Dock 30,000 175 x 32 7 7 Slipway No. 1 Slipway *1,500 120 x 16 Slipway No. 2 Slipway *1,500 120 x 16 5 Slipway No. 3 Slipway *2,500 120 x 16 Slipway No. 4 Slipway *3,000 120 x 16 5 Al Zora Wharf Wharf 250 East Wharf Wharf 200 5 West Wharf Wharf 83 5 USA Keppel AmFELS Floating Drydock (Rig mode) Floating Drydock 35,054 94 x 110 Floating Drydock (Ship mode) Floating Drydock 35,054 37 x 190 Launching Way 335 9.14 West Dock Quay 152 9.75 153 9.14 East Dock Quay 290 9.14 290 9.14 Norway Keppel Norway Outfi tting Quay Outfi t Quay 200 15

* Light Displacement Tonnage

Global Network Facilities 89 Global Network Contacts

Singapore Keppel Offshore & Marine Technology Centre Azerbaijan Keppel Offshore & Marine Ltd (KOMtech) Caspian Shipyard Company Ltd (Head Offi ce) 31 Shipyard Road South Bay, KMNF Basin 50 Gul Road Singapore 628130 Baku AZ1023, Azerbaijan Singapore 629351 Tel: +65 6591 5450 Tel: +994 12 449 9930 Tel: +65 6863 7200 Fax: +65 6261 7718 Fax: +994 12 449 9931 Fax: +65 6261 7719 www.keppelom.com Email: [email protected] Email: [email protected] Contact Person: Dr Foo Kok Seng, Centre Director Contact Person: Yan Naing Myint, President Keppel FELS Limited (Pioneer Yard 1 – Head Offi ce) Offshore Technology Development 50 Gul Road Pte Ltd Singapore 629351 55 Gul Road Brazil Singapore 629353 Keppel FELS Brasil SA (Pioneer Yard 2) Tel: +65 6863 7409 Rua da Assembleia, 10 - 2113 55 Gul Road Fax: +65 6862 3465 20011-000 Rio de Janeiro, Singapore 629353 RJ, Brazil Email: felsotd@pacifi c.net.sg Tel: +55 21 2102 9400 (Shipyard Road) Contact Person: Fax: +55 21 2102 9425 31 Shipyard Road Dr Foo Kok Seng, Executive Director Singapore 628130 www.kfelsbrasil.com.br Deepwater Technology Group Pte Ltd Email: [email protected] (Crescent Yard) 50 Gul Road Contact Person: 60 Shipyard Road Singapore 629351 Kwok Kai Choong, President & CEO Singapore 628131 Tel: +65 6863 7291 Fax: +65 6863 1739 Keppel Singmarine Brasil Tel: +65 6863 7200 Rua Prefeito Manoel Evaldo de Müller Fax: +65 6261 7719 Email: [email protected] 3388 Bairro Machados, Navegantes Contact Person: Anis Hussain, General Manager Santa Catarina, Brasil www.keppelfels.com Tel: +55 (47)3342-6460 Email: [email protected] Marine Technology Development Contact Persons: Pte Ltd Email: [email protected] Wong Kok Seng, Managing Director 15 Benoi Road Contact Persons: Keith Teo, General Manager (Marketing) Singapore 629888 Tan Chong Kee, General Manager Tel: +65 6860 2858 Lee Yoong Hoong, Assistant General Manager Keppel Shipyard Limited Fax: +65 6860 2502 (Marketing/Commercial) (Tuas Yard – Head Offi ce) 51 Pioneer Sector 1 Email: [email protected] Singapore 628437 Contact Person: Tel: +65 6861 4141 Tan Cheng Hui, Senior General Manager Bulgaria Fax: +65 6861 7767 Keppel FELS Baltech Ltd Asian Lift Pte Ltd 54 Debar Street (Benoi Yard) 23 Gul Road Varna 9000, Bulgaria 15 Benoi Road Singapore 629356 Tel: +359 52 684 250 Singapore 629888 Tel: +65 6668 4222 Fax: +359 52 684 252 Tel: +65 6861 6622 Fax: +65 6668 4333 Fax: +65 6861 4393 Email: offi [email protected] Email: [email protected] Contact Person: Lyudmil Stoev, General Manager (Gul Yard) Contact Person: John Chua, General Manager 55 Gul Road Keppel Smit Towage Pte Ltd Singapore 629353 China 23 Gul Road Tel: +65 6861 3007 Keppel Nantong Shipyard Singapore 629356 Fax: +65 6862 3645/7 Company Ltd Tel: +65 6668 4222 No. 9 Yan Jiang Road Fax: +65 6897 8056 www.keppelshipyard.com Nantong City, Jiangsu Province Email: [email protected] P.R. C hi n a 226 0 0 5 Email: [email protected] Contact Persons: Tel: +86 513 8530 0000 Contact Person: Ben Chew, General Manager Nelson Yeo, Managing Director Fax: +86 513 8530 0011 Louis Chow, General Manager (Commercial) Email: [email protected] Mah Chan Wah, General Manager Contact Person: Lee Tai Kwee, President (Commercial – Shiprepair) Australia Keppel Prince Engineering Pty Ltd Keppel FELS Engineering Shenzhen Co. Ltd Keppel Singmarine Pte Ltd Level 7, 3 Bowen Crescent 3rd Floor, Chiwan Petroleum Building 15 Benoi Road Melbourne, Victoria 3004, Australia Chiwan Road No. 5 Singapore 629888 Tel: +61 3 9820 9033 P.R. C hi n a 518 0 6 8 Tel: +65 6861 6622 Fax: +61 3 9866 6110 Tel: +86 755 26851902 / +86 755 26851903 / Fax: +65 6862 1792 Email: [email protected] +86 755 26851959 +65 68637215 (Singapore Contact) www.keppelsingmarine.com Contact Person: Charles Chiam, Director Fax: +86 755 26851670 Email: [email protected] Contact Persons: Email (China): [email protected] Hoe Eng Hock, Executive Director Email (Singapore): [email protected] Poon Tai Lum, General Manager Contact Person: Ho Jong Heng, General Manager (Commercial/Marketing)

Keppel Offshore & Marine Ltd 90 Report to Stakeholders 2010 India The Philippines USA Keppel FELS Offshore and Engineering Keppel Philippines Marine, Inc Keppel Offshore & Marine USA, Inc Services Mumbai Pvt Ltd Unit 3-B Country Space 1 Building 5177 Richmond Ave, Suite 1065 Unit Number 3, 8th Floor Sen. Gil Puyat Avenue, Houston, TX 77056 Prism Tower-A Salcedo Village, 1200 Makati City USA Mindspace, Link Road Philippines Tel: +1 713 600 8380 Goregaon (West) Tel: +63 2 892 1816 Fax: +1 713 600 8384 Mumbai 400 062, India Fax: +63 2 815 2581 Tel: +91 22 40018888 Email: [email protected] Fax: +91 22 40018898 www.keppelphilippinesmarineinc.com Contact Person: Email: [email protected] or Chow Yew Yuen, President – The Americas E-mail: [email protected] [email protected] Contact Person: Anant Shukla, General Manager Contact Person: Toh Ko Lin, President Keppel AmFELS, LLC PO Box 3107, Keppel Batangas Shipyard, Inc. 20000 State Highway 48 Keppel Philippines Marine – Brownsville, TX 78523 Japan Special Economic Zone USA Regency Steel Japan Ltd Barangay San Miguel Tel: +1 956 838 3187 46-59 Nakabaru, Tobata-ku 4201 Bauan, Batangas Fax: +1 956 831 6220 Kitakyushu, Fukuoka 804-8505 Japan Philippines Tel: +81 93 861 3103 Tel: +63 43 727 1532 to 36 Email: [email protected] Fax: +81 93 861 3114 +63 43 727 4885; 980 0065 Contact Person: Tan Geok Seng, President & CEO Fax: +63 43 727 4885 Email: [email protected] +63 43 727 1453 FloaTEC, LLC Contact Person: Wong Chun Yu, President 14701 St. Mary’s Lane, Suite 250 www.keppelphilippinesmarineinc.com Houston, TX 77079 Email: [email protected] USA Contact Person: Tel: +1 281 870 5200 Kazakhstan Poh Leong Kok, Senior Vice-President Fax: +1 281 870 5210 Keppel Kazakhstan LLP Special Economic Zone “Seaport Aktau” Keppel Subic Shipyard, Inc www.FloaTEC.com Aktau 130001 Subic Shipyard – Special Economic Zone Email: ehnamtvedt@fl oatec.com Mangystau Region Cabangaan Point, Cawag Contact Person: Eric H. Namtvedt, President Republic of Kazakhstan 2209 Subic, Zambales Tel: +7 7292 571 100 Philippines Keppel Marine Agencies International, LLC Fax: +7 7292 571 110 Tel: +63 47 232 2380; 232 2710 (Texas Offi ce) +63 47 232 3410; 232 5670; 232 2870 5177 Richmond Ave, Suite 1065 E-mail: [email protected] Fax: +63 47 232 3883 to 84 or Houston, TX 77056 Contact Person: Yick Ping Wong, General Director +63 47 232 3350 USA Tel: +1 713 600 8371 Email: [email protected] Fax: +1 713 600 8374 The Netherlands [email protected] Keppel Verolme BV Contact Person: Mok Kim Whang, President Email: [email protected] Prof. Gerbrandyweg 25 Contact Person: Michael Holcomb, 3197 KK Rotterdam-Botlek President / Director Harbour no. 4550 Mobile: +1 713 816 0438 Qatar Email: [email protected] P O Box 1001 Nakilat-Keppel Offshore & Marine Ltd 3180 AA Rozenburg Contact Person: John C Bajor, Marketing Manager 3rd Floor, Royal Plaza, Al Sadd Street Mobile: +1 713 922 3226 The Netherlands Mailing Address: P.O. Box No. 22271 Tel: +31 181 234300 Doha, Qatar Fax: +31 181 234346 (New Jersey Offi ce) Tel: +974 3365 7686 15 Huddy Avenue, PO Box 417 Fa x: +974 4419 7410 www.keppelverolme.nl Highlands, New Jersey Email: [email protected] USA Email: [email protected] Tel: +1 732 872 8800 Contact Person: Contact Person: Abu Bakar Mohd Nor, CEO Harold W.M. Linssen, Managing Director Fax: +1 732 872 8801 United Arab Emirates Email: [email protected] Arab Heavy Industries PJSC Contact Person: John J Bajor, Director Norway P O Box 529 Keppel Norway AS Ajman, UAE Strandgaten 147 Tel: +971 6 526 3232 Vietnam P O Box 425 Fax: +971 6 526 3233 Keppel FELS Limited 4304 Sandnes, Norway www.ahi-uae.com PetroVietnam Tower Tel: +47 5160 2500 Email: [email protected] Suite 150M Fax: +47 5160 2510 Contact Person: 8 Hoang Dieu Street Ward 1, Vung Tau City www.keppelnorway.com Jimmy Loh, Managing Director S.R. Vietnam Email: [email protected] Tel: +84 643 850098 Contact Person: Roy Sletten, Acting CEO Fax: +84 643 850089

Email: [email protected] Contact Person: John Chin, Country Manager

Global Network Contacts 91 Corporate Structure

Keppel Offshore & Marine Ltd

Singapore The Netherlands The Netherlands USA Keppel FELS Limited KV Enterprises BV Keppel Verolme BV FloaTEC, LLC

Singapore Kazakhstan USA USA Keppel Shipyard Limited Keppel Kazakhstan LLP Keppel Offshore & Marine USA Inc. Offshore Innovative Solutions, LLC

USA Singapore Azerbaijan Norway Keppel AmFELS, LLC Asian Lift Pte Ltd Caspian Shipyard Company Ltd Keppel Norway AS

USA Singapore India United Kingdom Keppel Marine Agencies International, FELS Offshore Pte Ltd Keppel FELS Offshore & Engrg. Services DPS Bristol (Holdings) Ltd LLC Mumbai Pte Ltd

China Brazil Brazil Keppel FELS Engineering Shenzhen Co. Keppel FELS Brasil SA BrasFELS SA Ltd

Japan Brazil Regency Steel Japan Ltd Keppel Singmarine Brasil Ltda

Indonesia PT Bintan Offshore

Singapore Keppel Offshore & Marine Technology Centre Pte Ltd

Singapore Offshore Technology Devt Pte Ltd

Singapore Deepwater Technology Group Pte Ltd

Singapore Singapore Atwin Offshore & Marine Pte Ltd Keppel Singmarine Pte Ltd

Singapore Singapore KS Investments Pte Ltd Blastech Abrasives Pte Ltd

Singapore Malaysia Keppel Smit Towage Pte Ltd KSP Towage Sdn. Bhd.

Singapore Malaysia Maju Maritime Pte Ltd Kejora Resources Sdn. Bhd.

Singapore Dyna-mac Holdings Ltd

UAE UAE Arab Heavy Industries PJSC Arab Eagle Marine Engineering LLC

Singapore Alpine Engineering Services Pte Ltd

The Philippines The Philippines Keppel Philippines Marine, Inc Keppel Batangas Shipyard, Inc.

Singapore The Philippines Marine Technology Devt. Pte Ltd Keppel Subic Shipyard, Inc

China Keppel Nantong Shipyard Co. Ltd.

China Keppel Nantong Heavy Industry Co. Ltd.

Qatar Nakilat–Keppel Offshore and Marine Ltd

Keppel Offshore & Marine Ltd 92 Report to Stakeholders 2010 This annual report is printed on Meridien Brilliance, Eco-Frontier and Excel Satin. These papers are environmentally-friendly and are produced with a minimum content of 51% recycled paper.

Edited and Compiled by Group Corporate Communications, Keppel Corporation

Designed by greymatter williams and phoa (asia) Keppel Offshore & Marine Ltd (Incorporated in the Republic of Singapore)

50 Gul Road Singapore 629351 Tel: (65) 6863 7200 Fax: (65) 6261 7719 / (65) 6265 1927 www.keppelom.com www.keppelfels.com www.keppelshipyard.com www.keppelsingmarine.com

Co Reg No: 199900642R