Speech by Mr Choo Chiau Beng,

Chairman & CEO, Keppel Offshore & Marine

at the “P-52: Milestone in partnership” ceremony

on 16 December 2005 at 10.30 am at Keppel FELS, Singapore

A very good morning,

- The Honourable Guest of Honour, Mr Yeo Cheow Tong, Minister for Transport for the Republic of Singapore

- Your Excellency Mr Joao Gualberto Marques Porto, Ambassador of Brazil to Singapore,

- Mr Renato Duque, Services Director of Petrobras

- Mr Jose Figueiredo, Executive Manager of Petrobras

- Mr Bernard Di Tullio, General Manager of Technip’s Oil & Gas Division

- Distinguished Guests and Colleagues.

Welcome to this morning’s ceremony as we celebrate our partnership with Petrobras and Technip for the completion of the lower hull of P-52. This is a major milestone for the US$775 million contract awarded by Petrobras to the FSTP consortium comprising Keppel FELS, Keppel FELS Brasil and Technip.

As we commemorate this milestone, the upper hull and topsides of P-52 are being built in our Brazilian yards in Niteroi and Angra.

P-52 is the second totally new production semi that we are constructing for Petrobras since we built P-18 eleven years ago. When completed, P-52 will be one of the world’s largest floating production platforms, capable of producing oil and gas in water depths of 1,800m in the Campos Basin.

It will have an overall height of 101 m, and a deck area of 125 by 110 m. To give us a sense of scale, the P-52 will be as tall as a 34-storey apartment block and its upper deck will be ten times the area of a full-size Olympic swimming pool.

As we gather here for this celebration, my mind goes back to

19 December 2003 when we signed the P-52 contract in the presence of President Luiz Inácio Lula da Silva and the full Petrobras Board of Directors.

During the ceremony, Mr Renato Duque said, “We had a challenge to fulfil a national dream – to build part of the P-52 platform in Brazil, and we have succeeded. We are confident that the Keppel-led consortium will have good success on this project.”

Keppel is glad to participate in this national dream. It started around 2001 and 2002 with Brazil’s ambition to rejuvenate the offshore and marine construction industry.

Through the encouragement and support from Petrobras, the State Government of Rio and the Federal Government, we invested in shipyards in Niteroi and Angra.

Since then, I am proud to say that over 3,000 jobs have been created. The BrasFELS yard in Angra has completed several major projects including three Anchor Handling Tugs/Supply vessels, which are the largest to be built in the Southern Hemisphere. The Angra yard also undertook the conversion of the FPSO, P-48, which was delivered to Petrobras with high standards of safety and quality. It won BrasFELS the title of best shipyard contracted by Petrobras.

P-52, being one of the largest floating production semi, is an iconic project. We won the contract in consortium with Technip. We were tasked to meet Petrobras’ strict criteria of 60% local content. We achieved that, while still providing innovative solutions at a competitive price. Five months after securing the P-52 contract, Petrobras awarded the FSTP consortium a similar production platform, P-51.

In the two years since the P-52 contract was awarded, we have overcome various challenges through good teamwork. We look forward to our next challenge in mating the lower hull and topside as well as the mechanical completion and commissioning in Brazil.

Currently at our Keppel Shipyard Tuas yard is also the conversion of two Floating Production Storage and Offloading facilities for Petrobras, Capixaba and P-53. When these facilities are completed, together with P-52 and P-51, Keppel would contribute an additional production capacity of 640,000 barrels of oil per day to Brazil’s total oil production.

I am happy to announce that the column nodes of the P-51, which Keppel FELS has just completed, have left the yard on 11 December.

As we celebrate the double achievements this morning, we celebrate also the long-standing relationship between Petrobras and Keppel.

I would like to thank Mr Renato Duque and your distinguished delegation from Petrobras for your presence here today.

My special appreciation also goes to Minister Yeo Cheow Tong for gracing this momentous milestone.

I would also like to acknowledge the project teams who have worked hard on this project – Petrobras’ team led by Project Director Antonio Carlos Justi, Project Manager Roberto Moro and Construction Manager Flavio Siqueira; the Keppel FELS team led by Senior Project Managers, Yeong Wai Seng and BH Woo and of course the FSTP team led by Project Director Eduardo Nunez.

May I invite everyone to join me in giving the project team a big round of applause for a job well done!

My gratitude also to all our sub-contractors, suppliers, surveyors and underwriters who have toiled with us over many months in making today possible.

Thank you.

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