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Report to Stakeholders 2015
Vision Operating Principles
Our vision is to be the provider 1 Best value propositions
of choice and partner for to customers.
solutions in the global offshore 2 Tapping and developing
and marine industry. best talents from our
global workforce.
3 Cultivating a spirit of
Mission innovation and enterprise.
Keppel Offshore & Marine is a 4 Executing our projects well.
Harnessing
global leader in offshore rig 5 Being financially disciplined to
design, construction and repair, earn best risk-adjusted returns.
ship repair and conversion, 6 Clarity of focus and operating
Strengths
and specialised shipbuilding. within our core competence.
We harness the synergy of 20 7 Being prepared for the future.
yards worldwide to be near our
customers and their markets.
Corporate Structure
104 Corporate Structure
Overview / Operations Review & Outlook / Technology & Innovation / Sustainability Report / Global Network / Corporate Structure
01
Key Figures for 2015
Key Figures
for 2015
$9.0b $1.8b
Strong net orderbook at end-2015, of which Creditable level of new contracts for the year.
non-drilling solutions made up more than a third.
33 0.10
The number of newbuilds, conversions, major repairs/ The accident frequency rate in 2015, an improvement
upgrades that Keppel O&M delivered in 2015. from 0.11 in 2014.
>400 $13.2m
The number of vessels repaired by Keppel Shipyard The amount spent on training employees worldwide
during the year. during the year.
02 Keppel Offshore & Marine Ltd Report to Stakeholders 2015
Chairman’s
Statement
$480m
our exposure by slowing the construction
Notwithstanding the current market of their rigs. By end-2015, we stopped
turbulence, we continue to have confidence in construction altogether. While we await
the long-term fundamentals of the industry. further clarity on the situation in Brazil,
Creditable results for 2015 in Global demand for energy is expected to we have in prudence made a provision for
the face of strong headwinds. continue to rise, driven by increasing their projects, after assessing the status
urbanisation especially in developing countries, of the construction progress, payments
and a growing middle class. The downturn has received, amounts due to vendors and
resulted in the stacking and scrapping of older, other factors.
underperforming rigs. With reduced E&P
activity and depleting reserves, the supply During the year, Keppel O&M’s global
of oil would eventually fall, bringing oil prices yards delivered seven quality jackup rigs.
to a new, sustainable equilibrium. The Group also delivered several non-drilling
solutions, including a Depletion Compression
Tenacity to Thrive Platform (DCP), three Floating Production
Keppel Offshore & Marine (Keppel O&M) has Storage and Offloading (FPSO) vessels, an
witnessed four downturns since the 1970s, accommodation semisubmersible (semi)
and we understand the cyclical nature of the and three ice-class vessels.
industry. We have an experienced management
team which is judicious in making investments, Besides being the global leader in newbuild
negotiating contracts and managing costs, rig construction and FPSO conversions,
ensuring that we do not over-invest in capacity Keppel O&M is also a reliable partner for
when times are good, and also strategically repair and modification projects, which
diversifying our products, solutions and target help provide a good base load of work.
markets to enhance our resilience. Keppel FELS completed 16 repair/upgrade
projects for drilling contractors like Ensco,
Keppel O&M’s robust portfolio of solutions Diamond Offshore and Stena Drilling in 2015.
stretches across the exploration, production Keppel Shipyard repaired over 400 vessels
and maintenance phases of the oil and gas in 2015, slightly higher than in the previous
value chain. Oil producers’ budgets for year. Our overseas yards are also active
offshore production and maintenance work in executing repair and upgrade projects.
are expected to be less severely affected BrasFELS completed a number of repair
by low oil prices as hydrocarbon production projects, including a semi repair for
generates much needed cash flow while Ensco and a pipelaying support vessel
maintenance can also enhance oil recovery repair for Technip/Odebrecht, while
and thereby improve returns. Keppel O&M’s Keppel AmFELS completed three semi
diversified business has enabled it to capture repair jobs during the year.
a fair share of these projects. As at end 2015,
non-drilling solutions made up more than a Our backlog of orders stretching into 2020,
third of Keppel O&M’s $9 billion orderbook. together with our consistent flow of repair
Of this, $1.8 billion of new orders were won and modification work, will tide us through
during the year, including the third Floating this challenging period while we bolster our
Liquefaction (FLNG) vessel conversion for capabilities and solution offerings in both
Golar LNG. existing and new markets.
04 Keppel Offshore & Marine Ltd Report to Stakeholders 2015
Chairman’s
Statement
Seizing Opportunities integrated. Besides collaboration work on in-house engineering 01 Keppel O&M’s
diversified business
To deal with the current within Keppel O&M, we are also designs and standards for FLNG
allows it to capture
environment, our operating units looking at opportunities for vessels and Floating Storage projects that stretch
have been rightsizing, monitoring Keppel O&M to collaborate with Re-gasification Units. across the exploration,
the wider Keppel Group. production and
their cash flow and reviewing
maintenance phases
supply chains closely. We are Through its global network of of the oil and gas
leveraging synergies across our During the downturn, we are not yards, Keppel O&M is well placed value chain.
different divisions to streamline just hunkering down but also to meet the demands for local
processes, reduce costs and share making prudent investments to content in captive markets.
resources, including the allocation strengthen our capabilities and For example, Keppel AmFELS
of manpower and projects across offerings in preparation for the in Brownsville, Texas, services
our different yards worldwide. upturn. In 2015, Keppel O&M vessels working in the Gulf of
These efforts will enable Keppel entered into an agreement with Mexico while in Qatar, N-KOM
O&M to remain resilient as we Cameron International Corporation signed a fleet agreement with the
navigate through rough waters. to acquire the LETOURNEAU™ largest Greek Shipping company,
jackup rig designs, rig kit business, the Angelicoussis Group of
For instance, to service the as well as aftersales and Companies, to be their preferred
closed market of Azerbaijan, aftermarket services. This shipyard for ship repairs in
we tapped on Baku Shipyard’s opportune acquisition will broaden the Middle East. Over in the
strategic location there and Keppel O&M’s suite of jackup rig Netherlands, Keppel Verolme
Keppel Singmarine’s expertise design offerings, enable the sale of is exploring opportunities in the
in the building of a subsea rig kits as well as expand its ability European offshore wind sector.
construction vessel for national to provide aftersales services. Despite the challenges we are
oil company, SOCAR. In 2015, facing in Brazil, we continue to
Keppel Singmarine completed its Keppel O&M has also established regard Brazil as an important
scope of work, constructing the a new design and technology arm, long-term partner and market,
hull in two separate longitudinal Gas Technology Development (GTD), given its significant offshore
sections to ship it through the with the aim of augmenting Keppel oil and gas reserves, as well as
narrow Volga-Don Canal to reach O&M’s efforts in the gas-related Keppel’s experience and track
Baku Shipyard, where it was market. GTD has commenced record in Brazil.
01
Overview / Operations Review & Outlook / Technology & Innovation / Sustainability Report / Global Network / Corporate Structure
Chairman’s Statement
05
Interview with
the CEO
A
The offshore and marine market remains demand growth, the oil and gas industry needs
challenging. The continuing mismatch to produce another 4 MMb/d every year just
Q between a global supply glut and sluggish to keep up with existing demand. This will give
What is Keppel O&M’s demand in a fragile world economy is expected upward pressure on pricing, which will in turn
outlook for the offshore and to keep oil prices subdued in the near future. encourage oil companies to increase their
marine market in 2016 and Industry reports suggest that global E&P spending.
beyond given the continuing Exploration & Production (E&P) spending
low oil price? could decline by 15% or more in 2016 should On the demand side, while China’s growth
oil prices remain at current levels. rate has slowed, the country remains a very
large consumer of energy. Asian demand,
Looking ahead, however, we believe there are beyond just China, is also showing continual
positive developments that could help the growth. According to the World Bank, East Asia
industry evolve to a more sustainable level. remains one of the main growth drivers of
Oil companies kicking the can down the road the world economy, accounting for about
would at some point have to spend to replenish two-fifths of global economic growth.
reserves. As natural reservoir production At the same time, urbanisation is rising at
declines, which has historically been around an unprecedented speed and scale which
4 to 5% globally, it means that even without will also help fuel the demand for energy.
Overview / Operations Review & Outlook / Technology & Innovation / Sustainability Report / Global Network / Corporate Structure
Interview with the CEO
07
By 2050, two thirds of the world’s population no one can predict with certainty when that
are expected to live and work in cities, will be. In the meantime, the scrapping and
compared to just over half in 2014. stacking of rigs in the downturn should
also contribute to long-term replacement
As such, industry analysts believe that the demand. When the market improves, drilling
current low oil prices, which plunged below contractors will again want to order new rigs
US$30 a barrel at the start of 2016, are not that are more efficient and can fetch higher
sustainable in the long run. Oil prices will day rates. Keppel O&M will be ready to seize
eventually reach a new equilibrium, though the upturn when it comes.
A
We are not unfamiliar with the storms that engineering and investing carefully in new
Q periodically hit the offshore and marine solutions that can meet the precise needs
business. This is the fourth down cycle that of our clients in a robust and cost-effective
What is Keppel O&M doing I have personally witnessed. With each cycle manner. We are hence looking closely at areas
to ensure it weathers in the past, we have learnt valuable lessons, that we can continue to improve in, such
through this challenging improved ourselves and emerged stronger as enhancing our core competencies, and
environment? than before. Even during the boom time, we building up new strengths to keep ourselves
were careful not to over-invest in building fighting fit. Our focus includes areas such
capacity and kept a strong balance sheet. as execution, productivity, supply chain
Our prudence has served us well, allowing management, safety performance and
Keppel O&M to remain profitable in 2015 Research and Development (R&D). These
despite the headwinds. efforts will help to ensure we remain profitable
while continuing to provide the best value
While we will continue to be busy in 2016 with propositions to our customers.
a backlog of deliveries, we are also bracing
ourselves for a possibly longer winter. We will While seizing opportunities to build and grow
ensure that our overheads are well under our businesses, we aim to anchor our position
control by rightsizing our operations accordingly. as the trusted and preferred solutions partner
There is considerable flexibility in our workforce in the industry. We have a number of deliveries
deployment at all our yards, in particular with to make in the years ahead, and we will
contract workers, and we will keep operations continue to keep up our solid track record of
running at an optimal level. In 2015, with completing projects on time or ahead of
natural attrition, our direct staff strength in schedule, within budget and to the highest
our Singapore and overseas yards has come safety standards.
down by about 17% or about 6,000, while our
Singapore subcontract workforce has been Even as we hunker down, we recognise the
brought down by 24% or about 7,900 over importance of investing in people, our most
the same period. We have also redeployed vital resource, for future growth. This downturn
manpower in our global network of yards is a good learning opportunity for the younger
according to their needs, for example, from the generation of leaders and managers in
offshore yards to the marine yards where more Keppel O&M, and we have put them in
resources are needed for the steady stream of positions to develop their potential as part
repair and conversion projects. of the company’s succession planning.
Rightsizing does not mean we are just looking We have never allowed a crisis to go to waste
at cutting costs – it is also about value and this time will be no different.
08 Keppel Offshore & Marine Ltd Report to Stakeholders 2015
Interview with
the CEO
A
The Brazilian oil and gas industry continues stopped the construction of Sete’s projects by
to face huge challenges because of political the end of 2015. On average, the construction
Q and economic problems as well as the ongoing of the first four semis has progressed by less
The situation in Brazil corruption scandal surrounding Petrobras than 4% each quarter since the start of 2015.
continues to prove and its supply chain. These have exacerbated Of the six projects for Sete, only the first two
challenging. How is the industry weakness caused by persistent semis are in the most advanced stages,
Keppel O&M managing its low oil prices. In particular, uncertainty while minimal work had been done on the
operations in the country? over Sete Brasil’s (Sete) fate looms large last two units. We have made a provision of
and Keppel has not been spared from the $230 million, and have also come up with
knock-on effects. After Sete ceased payments strategies to deal with different scenarios
in November 2014, we had taken steps to that might unfold.
mitigate our exposure by slowing the
construction of their rigs. The problems involving Sete do not
mean we have no more work in Brazil.
BrasFELS, our yard in Angra dos Reis, has BrasFELS’ current projects include work
been monitoring the situation closely and for the FPSOs P-66, P-69 and Cidade de
managing its operational costs by rightsizing Caraguatatuba MV27, and we are fully
its resources according to project needs. As we committed to delivering these projects
await further clarity on the situation, we have bearing Keppel’s hallmark of excellence.
A
We do not think rig cancellations are likely work schedules and resources to minimise
at this point as we have been disciplined in any impact on our operations. We are looking
Q taking on quality contracts with sound terms. to deliver a few of these projects in 2016.
Do you expect customers At the same time, we understand the
to cancel or further challenges faced by our customers and will Already, at the start of 2016, we have delivered
reschedule the projects work with them to seek mutually acceptable four projects – a liftboat and a jackup rig to
that Keppel O&M’s yards solutions. In cases where customers have Gulf Drilling International and two jackup rigs
are currently executing? sought to defer their rig deliveries, we have for Grupo R. We are also on track to deliver a
reviewed their requests and re-allocated our semi accommodation to Floatel.
01
Q
In these challenging
times, where do you see A
opportunities in the offshore
and marine market? Despite the low oil price environment, established a strong presence and we
countries with the long-term goal to achieve continue to see projects being commissioned.
energy self-sufficiency are looking for ways
to optimise operations while maintaining their The market lull is also a period for us to
E&P programmes. In the Middle East, new invest strategically in R&D to enhance our
demand for rigs can potentially come from Iran solutions and increase our competitive
which just had sanctions against them lifted. edge so that we can ready ourselves for the
While this might portend more oil entering upturn when it comes. Our decision to acquire
the market in the near term, the opening up the LETOURNEAU™ jackup rig designs,
of the Iranian market could also bring about rig kit business as well as aftersales and
opportunities for repair and maintenance of aftermarket services broadens our suite of
Iran’s ageing platforms, and also drilling rigs jackup rig designs and enables us to move
for new fields. We have a strong presence in further into adjacencies and provide
the Middle East and the Caspian region, and aftersales services. In the current depressed
are able to provide a wide range of services and market, many rig owners are looking at
products to Iran and other countries in the repairing and upgrading their current fleet
region when the opportunity arises. Azerbaijan rather than ordering new rigs. LETOURNEAUTM
is also a closed market where we have designs account for about 100 of the rigs
currently operating around the world.
Q
Beyond Keppel O&M’s
traditional strengths, what A
are some of the new growth
areas that Keppel O&M We have been strengthening our non-drilling able to expand our network and clientele base
is pursuing? solutions, and are furthering our efforts in to bring pull-through work such as building
gas-related businesses. Despite a weak LNG vessels or servicing and retrofitting ships
medium-term outlook for the oil and gas at our shipyards.
sectors, we believe the Liquefied Natural Gas
(LNG) market has significant potential given Apart from the LNG market, we are also
the trend towards the adoption of greener increasing our focus on rig maintenance and
fuels. We are developing technologies that repair services. The low oil price environment
cater to more links along the LNG value chain. has encouraged field operators to improve
For instance, Keppel Shipyard is currently their maintenance and repairs of drilling and
undertaking the world’s first-of-its-type production platforms to ensure longer and
Floating Liquefaction vessel conversion more productive lifespans. Liftboats serve
for Golar LNG. We are also able to provide as a key component of this.
a more integrated solution with our own
liquefaction technology, PreNEx. We have Keppel O&M’s proprietary ORCA liftboat
further developed proprietary designs for designs were developed to meet the needs
LNG carriers, barges and tugs which can meet of field operators across a wide array of
the downstream needs of delivering LNG water depths and environmental conditions.
efficiently to end markets. We have already delivered the first such
liftboat through Nakilat-Keppel O&M this year.
Leveraging our experience and expertise in
servicing vessels including gas carriers, we are We will continue pursuing opportunities
working with BG Group (now part of Shell) to in the non-drilling market where there is still
provide LNG bunkering services in the Port of demand for solutions such as accommodation
Singapore starting in 2017. The move into semis, Plug & Abandonment jackups,
LNG bunkering is in line with our strategy to liftboats, offshore wind products and
provide solutions for the global LNG market. specialised vessels.
Along with bunkering services, we will also be
10 Keppel Offshore & Marine Ltd Report to Stakeholders 2015
Group Financial
Highlights
Consolidated Balance Sheet
as at 31 December 2015
2015 2014
S$’000 S$’000
Represented by:
Current assets
Stocks 111,142 163,111
Work-in-progress (cost > billings) 3,825,122 3,227,613
Related companies & associates 334,704 451,661
Other assets 167,423 113,333
Debtors 1,997,199 1,420,154
Bank balances, deposits & cash 1,093,151 1,712,563
7,528,741 7,088,435
Current liabilities
Creditors 1,874,895 2,201,131
Work-in-progress (billings > cost) 1,751,319 2,332,092
Related companies & associates 2,747,960 1,666,438
Other liabilities 513,542 338,688
Short term loans 116,704 35,201
Taxation 143,448 247,276
7,147,868 6,820,826
Non-current liabilities
Long term loans 1,156,809 115,749
Deferred taxation 62,832 9,339
Deferred liabilities 1,287 1,386
Accrued expenses 52,276 48,356
1,273,204 174,830
Group at
a Glance
The Offshore Division, helmed In the Marine Division, Keppel The Specialised Shipbuilding arm
by Keppel FELS, is a leading Shipyard is the trusted industry in the Marine Division is led by
designer, builder and repairer name for the repair, conversion Keppel Singmarine, which has a
of high-performance mobile and upgrade of a diverse range track record of some 400 newbuild
offshore drilling rigs. of vessels. vessels of diverse functions
and sophistication.
The Division’s portfolio of Keppel Shipyard is a leader
proprietary designs and floating in the conversion of Floating Its portfolio of customised vessels
production solutions meets a Production Storage and Offloading, spans Anchor Handling Tug/Supply
broad spectrum of operating Floating Storage and Offloading, vessels, multi-purpose Offshore
requirements including deep Floating Storage Re-gasification, Support Vessels and tugboats
waters and harsh environments. and Floating Liquefaction units. to highly advanced solutions
Its competencies include topside such as ice-capable and subsea
With technology innovation and and turret fabrication. construction vessels.
competent design and engineering
capabilities, this Division offers With a strong commitment to Health, Harnessing its suite of design
viable, cost-effective and highly Safety and Environment and an and engineering solutions,
adaptable solutions for newbuilds established reputation of reliability, strong logistics and infrastructure
and upgraded offshore units. flexibility and quality for complex support in Singapore, Keppel
projects with quick turnaround, Singmarine provides customers
the Division continues to deliver with one-stop value-added services.
high value to its customers.
Overview / Operations Review & Outlook / Technology & Innovation / Sustainability Report / Global Network / Corporate Structure
13
Group at a Glance
Harness Global
Synergies
Develop and draw on the
collective strength of global
yards and offices to reinforce
our Near Market, Near
Customer strategy and
deliver value to customers.
Increase Business
Robustness
Seek opportunities to
strategically acquire or
co-invest with partners
in new capabilities and
facilities, and enter into
new markets.
14 Keppel Offshore & Marine Ltd Report to Stakeholders 2015
Board of
Directors
Board of
Directors
Independent and
Non-Executive Director
Keppel Corporation Limited
Transocean Ltd
KrisEnergy Ltd
PT Chandra Asri Petrochemical Tbk
Non-Executive Director
SMRT Corporation Ltd
Robert D.Somerville
Vice Chairman
Maine Maritime Academy Board of Trustees
Chairman
Keppel DC REIT Management Pte. Ltd.
(Manager of Keppel DC REIT)
Non-Executive Director
Keppel Land Limited
Keppel Telecommunications & Transportation Ltd
Keppel Infrastructure Holdings Pte Ltd
KrisEnergy Ltd
18 Keppel Offshore & Marine Ltd Report to Stakeholders 2015
Key
Personnel
1 7
5 8
6 9
2
4
3
1 3 6
4
7
2
Key
Personnel
9
1 6 8
4 7
2
3 5
Keppel FELS
1. Jay Singam 6. Chris Ong Leng Yeow
General Manager Deputy Managing Director
Commercial
7. Jerald Lee Quan Ti
2. Keith Teo Tiong Gee Financial Controller
General Manager
Marketing 8. Tan Leong Peng
General Manager
3. Wong Fook Seng Engineering
Executive Director
Quality System and Process Excellence 9. Max Goh Han Bin
General Manager
4. Mohamed Sahlan Bin Salleh Operations
Executive Director
Operations
4 7 8
1
6 11
2 10 13
5 9 12
3
Keppel Shipyard
1. Ivan Lim Shaw Chuan 7. Burt Loh Kok Mun
General Manager General Manager
Operations Operations
Key
Personnel
5
6 8
4 7
3 9
1 2
Keppel Singmarine
1. Harry Loh Moon Thong 5. Abu Bakar Bin Mohd Nor
Senior Yard Manager Managing Director
6 8
1 3 9
5 7
2
Key
Personnel
Overseas Heads
Kwok Kai Choong Marlin Khiew Huey Kang Harold W.M. Linssen
Keppel FELS Brasil S.A. Estaleiro BrasFELS Ltda Keppel Verolme BV
Simon Lee Kim Foong Lau Kuat Pin Edmund Lek Hwee Chong
Keppel AmFELS, LLC Caspian Shipyard Company, LLC Keppel Nantong Shipyard Co. Ltd
Keppel Nantong Heavy Industry Co. Ltd
Key
Personnel
Overseas Operational Dennis Tan Boon Wei Keppel Nantong Shipyard Co. Ltd
Vice President Keppel Nantong Heavy Industry
Centres Finance Co. Ltd
Arab Heavy Industries PR.J.S.C Edmund Lek Hwee Chong
Keppel FELS Brasil S.A. President
Leong Siew Loon
Kwok Kai Choong
Managing Director
President and Wong Phuay Cheng
Chief Executive Officer Vice President
PT Bintan Offshore
Operations
Thomson Halim
Tommy Sam Yuin Sing
General Manager
Vice President David Lim Kok Hwee
Vice President
Keppel Philippines Marine, Inc
Samuel Wong Chung Han Finance
Chor How Jat
Chief Financial Officer
Chairman
Li Gang
Gilberto Israel Vice President
Leong Kok Weng
Commercial Director Commercial (Keppel Nantong
President Shipyard Co. Ltd)
Karina Stoff Fonseca Mendonca
Stefan Tong Wai Mun Lewis Liang Kun
Legal and HR Director
Executive Vice President Vice President
Alceu Mariano De Melo Souza Commercial (Keppel Nantong Heavy
Keppel Batangas Shipyard, Inc Industry Co. Ltd)
Institutional Relations Director
Tan Geok Seng
General Manager Nakilat-Keppel Offshore
Estaleiro BrasFELS Ltda
Marlin Khiew Huey Kang & Marine Ltd
Keppel Subic Shipyard, Inc Chandru Sirumal Rajwani
Leong Kok Weng President
Chief Executive Officer
President
Luiz Carlos Caetano Dos Santos
Operations Director Felix Allen Jerome
Spencer Leong Chee Wah General Manager
General Manager Operations
Keppel Verolme BV
Keppel Offshore & Marine USA, Inc Harold W.M. Linssen
Managing Director Regency Steel Japan Ltd
Lai Ching Chuan Wong Chun Yu
President President
Gurbanov Elshan
Tommy Sam Yuin Sing Chief Financial Officer
Naoya Hachigoh
Vice President Chief Operating Officer
Caspian Shipyard Company, LLC
Cheung Tak On Lau Kuat Pin
Chief Executive Officer Keppel Singmarine Brasil Ltda
Vice President
Loh Kee Huat
Technology
General Manager
Keppel AmFELS, LLC
Baku Shipyard, LLC
Simon Lee Kim Foong
Lam Khee Chong
President
General Manager
Eric Phua Hwan Khoon
Vice President
Commercial
Tom McCoy
Vice President
Production
Overview / Operations Review & Outlook / Technology & Innovation / Sustainability Report / Global Network / Corporate Structure
Key Personnel
27
Dr Matthew Quah Chin Kau Keppel FELS Baltech Ltd Keppel Sea Scan Pte Ltd
Senior Programme Manager Lyudmil Stoev Gui Eng Hwee
Offshore Structures and Analysis General Manager General Manager
Harnessing Fortitud
Do Collective
People-Centredness Strengths
Integrity Innovation
e
Strengths Can Do
Talent
Value
Accountabilty
Execution
People-Centredness Discipline
Agility Collective StrengthValue Innovation
Readiness Can Do Execution Enterprise
Agility
Enterprise
Execution Discipline
Synergy
Integrity People-Centredness As a global offshore and marine
Focus group, we are able to harness
Safety the strengths, experience
Innovation Execution and competencies across our
business units to stay fighting
Discipline Accountability fit and remain at the forefront
Collective Strength Agility of the industry.
Agility
Leadership We are configured Technology
with financial and
A leader in our industry, organisational strengths We have the technology
we are focused on staying to navigate challenging and drive to constantly
ahead by delivering terrains and scour innovate to adapt and
differentiated and new markets. provide solutions in a
superior solutions in a dynamic market.
We stay lean and agile at all
timely and safe manner. times to respond to market and
environmental changes in ways By working closely with customers
We continuously build a strong that drive performance and build and partners to advance our
bench strength capable of competitive advantage. technological capabilities, we
seizing opportunities and ensure that our solutions always
growing the company through meet specific needs in a robust
technological advancement, and cost-effective manner.
strategic partnerships and
execution excellence.
Delivery
We have a strong track Synergy
record of delivering
Fortitude to our customers’ We harness the various
satisfaction, on-time, strengths and resources
We have gleaned on budget and safely. within Keppel Offshore &
lessons from our Marine as well as the
experiences through Honing our capabilities and
wider Keppel Group to
innovating continuously, we strive
various economic cycles enhance and broaden
to deliver value-added services
to become stronger and to our customers and stay ahead our solution offerings.
more resilient. of the competition.
Coupled with our technological
Guided by our core values and solutions, our Near Market, Near
experience in withstanding Customer strategy enables us to
industry headwinds, we have better service existing markets
the Can Do! spirit and ability while entering new ones.
to weather through storms,
while looking out for strategic
opportunities to grow our strengths.
30 Keppel Offshore & Marine Ltd Report to Stakeholders 2015
Tapping
Offshore
New Markets Solutions
for Growth
Expanding Rig Designs as Another aspect of the business
well as Aftersales and is the provision of aftersales
Aftermarket Services services. With more than 150
Seizing an opportune and LETOURNEAUTM rigs currently
With an extensive suite strategic acquisition in the operating around the world,
down market, Keppel Offshore many operators require
of offshore and marine & Marine (Keppel O&M) entered servicing and repair of their rigs.
solutions, we are into an agreement with Cameron Keppel will be able to leverage
able to serve a wide International Corporation its network of yards worldwide
(Cameron) to acquire Cameron’s to better meet these customers’
spectrum of customers offshore rigs business, which needs. Besides repairs,
in both the drilling and comprises the LETOURNEAUTM upgrades and modifications,
non-drilling markets. jackup rig designs, rig kit business jackups are required to undergo
as well as aftersales and five-year class recertification
aftermarket services. special periodic surveys.
To grow our businesses and
maintain market leadership, Keppel will be able to offer With the current low oil price,
we keep a close watch on the customers the LETOURNEAUTM rig rig owners are looking at
market and tap new ones designs through the sale of rig kits repairing and upgrading their
by investing strategically to to shipyards, or deliver ready-to- current fleet. We will be able to
drill rig solutions from Keppel leverage the LETOURNEAUTM
develop new solutions or sales service infrastructure
yards worldwide. The rig kits
enhance core competencies. include jackup leg components, to service rigs of both the
elevating units/jacking system LETOURNEAUTM as well as
We are prudently investing and cantilever/skidding system. Keppel FELS designs.
in R&D to grow our suite of Support equipment such as
solutions to meet customers’ cranes and anchor winches are Keppel O&M has the expertise to
needs across various also options in the rig kits. build rigs of the LETOURNEAUTM
design, having previously
segments, be it for oil and completed 16 such rigs.
It will not only broaden Keppel
gas production, offshore O&M’s suite of jackup rig design
installation, maintenance offerings in this highly competitive Innovative Liftboats
and repair, subsea support sector, but also provide us with According to research company,
or offshore liquefaction. enhanced capabilities to service IHS Petrodata, there are over
customers through the provision 8,000 fixed platforms globally
of expanded aftersales and in water depth of less than
aftermarket services. 400 feet, with an average
age of about 25 years. As
The LETOURNEAUTM suite of platforms age, they require
jackup rig designs are established frequent and robust inspection,
designs that are popular with maintenance and repair
certain market segments programmes to ensure longer
and have a proven track record productive lifespans. The
of operating in a variety of low oil price environment has
environments. encouraged field operators to
improve productivity in their
The designs Keppel is acquiring, maintenance regime and
which include the LETOURNEAUTM liftboats serve as a key
Super 116E, WORKHORSETM, component of this.
Super Gorilla XL and Jaguar,
Fixed Platforms Worldwide will add to Keppel’s offerings in Liftboats are self-propelled
8,000
the jackup rig market. and self-elevating vessels
that are used in a variety of operators. Features which accommodation tender or 01 Keppel O&M
applications. These include facilitate operations and alternatively as a 100-man has the expertise
to build rigs of the
construction and installation emphasise safety were construction and crane vessel. LETOURNEAUTM
support, maintenance and incorporated into the design. design, having
intervention of shallow water This resulted in standard features In addition to its large versatile previously completed
16 such rigs.
wells and serving as auxiliary such as generous freeboard and open deck space for cargo
accommodation units. installed forecastles which not storage, the vessel’s
only allow for safer transit in accommodation is located 02 With more than
150 LETOURNEAUTM
In response to this need, Keppel moderate seas, but also lessen above the main deck for
rigs currently
O&M launched a series of liftboat the likelihood of deck cargo greater safety and meets the operating around
designs to meet the needs of and equipment getting drenched latest IMO (International the world, many
operators across water depths by deck wash. Maritime Organisation) and operators require
servicing and
and environmental conditions. ILO (International Labour repair of their rigs
ORCA 1500/2500/3500 Series Organisation) requirements. and Keppel will be
Developed by Keppel O&M’s for Benign to Moderate It can be equipped with able to leverage
LETOURNEAUTM’s
design arms, Bennett Offshore Environments different tonnage cranes on aftersales services to
and Offshore Technology These small to medium-sized deck, enabling it to undertake meet their needs.
Development, the newly liftboats are designed to be the the maintenance of most
launched ORCA series of liftboats workhorse of the support vessel shallow water oil and gas 03 The ORCA series
are economical and highly market. They can operate in water fields and wind farms, as of liftboats is
efficient in a variety of conditions. depths of up to 65 metres and well as various workover economical and
highly efficient in
The ORCA design also features have a variable load capacity drilling operations and well a variety of offshore
Keppel’s patented and proven ranging from 500 to 2,000 metric intervention applications. operations such
jacking system. tonnes. The scalable nature as construction,
installation,
of the hull systems allows Keppel O&M’s first liftboat of
maintenance and
In coming up with a truly efficient for customisation based on the ORCA design, Al Safliya, was accommodation
design, the ORCA series was intended use. For example, delivered by Nakilat-Keppel support.
developed with comprehensive the ORCA 3500 design may O&M in January 2016 to Gulf
feedback from current industry be configured as a 300-man Drilling International.
01 02 03
32 Keppel Offshore & Marine Ltd Report to Stakeholders 2015
LNG
Solutions
In the shipping industry, the use of LNG as an alternative According to Energy Insights, a specialist data and
marine fuel is increasing due to emissions reduction analytics unit within McKinsey, demand for LNG
requirements set by the IMO in Emission Control Areas is expected to grow on average between 4-6% p.a.
that came into force in January 2015. North America, until 2030. Given this long-term demand outlook,
including most of the US and Canadian coast, and key it is estimated that the market needs to take
countries in northwest Europe, the Baltic Sea area, as final investment decisions on a further 20mtpa
well as Asia have recognised the impact of shipping of capacity in the next two to three years to bring
emissions on air quality and are encouraging the adoption it to market by 2023, and a further 45mtpa by
of LNG through subsidies for LNG-fuelled vessels and the end of the decade so it can be ready for
the development of LNG bunkering facilities. demand in 2025.
200
150
%
100 Europe 55
America 27
50 Norway 14
Asia & Pacific 3
0 Middle East 1
2010 2011 2012 2013 2014 2015 2016 2017 2018 Total 100
LNG to Users
Transportation and Bunkering Solutions
LNG as Fuel
Engine Conversion
Operations Review
& Outlook
Creditable Performance service customers through
Against a challenging and the provision of expanded
volatile environment, aftersales services.
Keppel Offshore & Marine
(Keppel O&M) continued to To further focus efforts in
Significant Milestones in 2015 perform respectably in 2015, gas-related businesses,
anchored by proven operational Keppel O&M established a
capabilities and extensive new unit, Gas Technology
Secured orders for a multi-purpose experience in a wide spectrum Development (GTD), in July 2015.
vessel and a multi-purpose Anchor of offshore and marine projects. Among the work that GTD has
Handling Tug. commenced on are in-house
During the year, Keppel O&M engineering specifications
Delivered the fourth high- was further entrusted with and standards for Floating
specification accommodation $1.8 billion of new orders, Liquefaction (FLNG) vessels as
semisubmersible to Floatel well as Floating Storage and
bringing the value of its net
International on time, on budget
orderbook to $9 billion as at Re-gasification Units (FSRU).
and with a perfect safety record.
year end, of which non-drilling
solutions made up more With an extensive array of
Delivered the 100th jackup rig built
by Keppel FELS since 1970. than a third. offshore and marine solutions
bolstered by its Near Market,
Delivered a Depletion Compression Notwithstanding the headwinds, Near Customer strategy,
Platform, the first such platform Keppel O&M remains steadfast Keppel O&M is well positioned
to be fully constructed in the in delivering its projects safely, to serve a wide spectrum of
Philippines. on time and within budget to customers around the world
the satisfaction of its customers. to meet their drilling and
Strengthened track record in During the year, it delivered non-drilling needs, be it for oil
ice-class vessels with the delivery seven quality jackup rigs and production, subsea construction,
of three units together. several non-drilling solutions offshore liquefaction or repair
which included a Depletion and upgrades.
Held the world’s first triple rig Compression Platform (DCP) to
naming ceremony. Shell Philippines Exploration, a Singapore Yards
Floating Production Storage and Keppel FELS
Secured order for a third Floating Offloading (FPSO) vessel to SBM In 2015, Keppel FELS delivered
Liquefaction vessel conversion. Offshore, an accommodation seven rigs either on time or ahead
semisubmersible (semi) to Floatel of schedule, safely and on budget
Awarded the world’s first conversion
International and three ice-class to customers including Arabian
project of a large Roll-on/Roll-off
vessels to Bumi Armada. Drilling Company, Ensco, Maersk
cargo vessel to operate on a dual-fuel
Drilling, PEMEX and PV Drilling.
diesel LNG propulsion system.
Enhancing Capabilities
Signed agreement to aquire the Even as Keppel O&M works Notably, Keppel FELS delivered
LETOURNEAU™ jackup rig designs, at reducing costs and its 100th newbuild jackup rig,
rig design kit business and optimising operations, it is a KFELS B Class rig, PV Drilling VI,
aftersales services. constantly positioning itself to PV Drilling Overseas, a
to capture a bigger slice of subsidiary of PV Drilling. The
Delivered the world’s deepest the rig market in the long term. milestone delivery once again
Floating Production Storage and Keppel O&M entered into an affirmed its position as the
Offloading vessel, Turritella, with agreement with Cameron largest manufacturer of jackup
excellent safety record. International Corporation rigs in the world.
(Cameron) to acquire Cameron’s
Delivered a total of six KFELS B Class offshore rig businesses, which Besides being the global leader
jackup rigs and an ultra harsh comprise the LETOURNEAU™ in the design and construction of
environment jackup rig. jackup rig designs, rig kit offshore rigs, Keppel FELS is also
business as well as aftersales a reputable partner for quality
Completed 16 repair/upgrading and aftermarket services. repair and modification projects.
projects for drilling contractors at During the year, Keppel FELS
This opportune and strategic
Keppel FELS.
acquisition will broaden completed 16 repair and
Keppel O&M’s suite of jackup upgrading projects for drilling
Repaired over 400 vessels at
rig design offerings, enable contractors such as Ensco,
Keppel Shipyard.
the sale of rig kits as well as Diamond Offshore and Stena
enhance its capabilities to Drilling. Among the many projects
Overview / Operations Review & Outlook / Technology & Innovation / Sustainability Report / Global Network / Corporate Structure
35
Operations Review & Outlook
that bear testament to Keppel Major Orders Secured by Keppel O&M in 2015
FELS’ execution excellence is the Business Unit Contract Customer
post-delivery upgrading job for
Ensco’s drillship, DS-9, which 1Q
was completed two days ahead Keppel FELS Drillship upgrade Ensco
of a compact 45-day schedule. Keppel Shipyard FPSO topside fabrication Bumi Armada Berhad
Another repeat customer, Keppel Shipyard FPSO turret fabrication Bumi Armada Berhad
Stena Drilling, also showed its Keppel Shipyard Drillship upgrade Dolphin Drilling
confidence in Keppel FELS’ Keppel Singmarine Multi-purpose vessel New Orient Marine
execution capability and quality Keppel Singmarine Technical services for liftboat N-KOM
services when it sent the semi, Keppel Singmarine Anchor-handling tug Seaways International
Stena Clyde, for its Special Caspian Shipyard Company Semisubmersible upgrade Caspian Drilling Company
Periodic Survey (SPS) at
Keppel FELS for the fourth time. 2Q
Stena Clyde previously had Keppel FELS Semisubmersible upgrade Stena Drilling
its surveys conducted at the Keppel AmFELS Semisubmersible repair Transocean
yard in 2000, 2005 and 2010. 3Q
Keppel FELS Liftboat Crystal Heights
During the year, Keppel FELS
Keppel Shipyard FLNG conversion Golar LNG
intensified its focus on the
Keppel Shipyard FPSO conversion Bumi Armada Berhad and
non-drilling market, such as Shapoorji Pallonji Group
securing a new liftboat order
Keppel Shipyard Conversion of a Roll-on Totem Ocean Trailer Express
from Crystal Heights Holdings. Roll-off vessel to a dual-fuel
The liftboat is designed by diesel LNG propulsion system
Keppel O&M’s naval architecture Keppel Shipyard Field development vessel Saipem Offshore
and marine engineering arm, refurbishment and upgrade
Bennett Offshore, in collaboration Keppel Verolme Semisubmersible repair Stena Drilling
with Keppel FELS. Keppel Verolme Semisubmersible repair Transocean
01
01 Keppel FELS
completed 16 repair/
upgrading projects in
2015 which included the
post-delivery upgrading
job for Ensco’s drillship
DS-9, which was
completed two days
ahead of schedule.
36 Keppel Offshore & Marine Ltd Report to Stakeholders 2015
Operations Review
& Outlook
01
service businesses will help to ready itself for The shipyard has a solid track record of
the recovery of the rig market. completing 118 FPSO/Floating Storage and
Offloading (FSO)/FSRU/Floating Storage Unit
Besides being focused on execution and (FSU) projects and 75 turrets/mooring systems
sharpening its competitive advantage, to-date.
Keppel FELS also places utmost emphasis on
workplace safety. As a testament to its efforts In ship repair, Keppel Shipyard serviced over
in promoting work safety, Keppel FELS won 400 vessels in 2015. Tankers and Liquefied
18 awards in the Safety and Health Award Natural Gas (LNG) carriers were the main
Recognition for Projects (SHARP) category at contributors to Keppel Shipyard’s repair
the 2015 Workplace Safety and Health (WSH) business in 2015, taking up 31% and 13%
Awards organised by Singapore’s WSH of the repair revenue respectively. With its
Council and Ministry of Manpower. commitment to customer focus, Keppel Shipyard
managed to expand its repeat ship repair
Keppel Shipyard customer base to 99 repeat customers, while
Keppel Shipyard completed two FPSO winning over 35 new customers at the same time.
conversion/upgrading projects, four
turret fabrication projects and one mooring Maintaining its leading position in complex
system modification project in 2015. conversions, Keppel Shipyard secured a
Overview / Operations Review & Outlook / Technology & Innovation / Sustainability Report / Global Network / Corporate Structure
37
Operations Review & Outlook
contract from Golar Gandria N.V., a subsidiary crane will help to improve workflow and 01 Management from
Keppel Corporation,
of Golar LNG, to perform the conversion of a enhance productivity of the workforce.
Keppel O&M and Grupo R
third Moss-type LNG carrier, the GANDRIA, celebrating the world’s
into a FLNG vessel. In 2015, Keppel Shipyard’s commitment first triple rig naming
to execution and safety excellence continued ceremony with Guest-of-
Honour Mr Chan Chun
In the conversion market, Keppel Shipyard to set industry benchmarks when it garnered Sing (fifth from the left),
continues to serve the industry’s needs for the Shipyard of the Year award from Lloyds Singapore’s Minister in
FPSO units. During the year, Keppel Shipyard List, 10 SHARP Awards by the Singapore Prime Minister’s Office
and Secretary-General
secured a contract from Yinson Holdings WSH Council and the Bronze Award for of the National Trades
Bhd to perform the conversion of a tanker WSH Innovations in the Marine Industry Union Congress.
to an FPSO. Besides conversions of FPSO conferred by the Association of Singapore
and FLNG vessels, Keppel Shipyard also Marine Industries. 02 Keppel Shipyard
won a contract from Totem Ocean Trailer secured its third
Express, a subsidiary of TOTE Services, Continuing in its efforts to help Floating Liquefaction
vessel conversion
to perform the world’s first conversion subcontractors improve their productivity, contract from Golar
of a large Roll-on/Roll-off cargo vessel Keppel Shipyard renewed its partnership LNG, whose LNG
to operate on a dual-fuel diesel LNG with Spring Singapore as a PACT carrier, the HILLI, is
currently undergoing
propulsion system. (Partnerships for Capability Transformation)
conversion at
manager. Keppel Shipyard’s role as a the shipyard.
Amongst the yard improvement initiatives PACT manager is to engage and support
implemented during the year was the subcontractors in obtaining government
installation of a new 250-tonne quay crane funding for productivity, capability
at Keppel Shipyard’s Benoi Yard. The new and innovative developments. To date,
02
38 Keppel Offshore & Marine Ltd Report to Stakeholders 2015
Operations Review
& Outlook
Keppel Shipyard has successfully helped Keppel Singmarine continued to 01 Keppel Shipyard
successfully delivered
over 90 resident subcontractors and vendors strengthen its track record in building
FPSO vessel, Turritella,
benefit from a collective grant of over $2 million ice-class vessels when it celebrated the to SBM Offshore
for productivity improvement projects. delivery of three ice-class vessels to and Shell with a
Bumi Armada – two of which are ice-class solid safety record.
Keppel Singmarine supply vessels constructed at sister yard
Keppel Singmarine had a creditable year Keppel Nantong Shipyard, and one 02 Keppel O&M
in 2015 with a number of contract wins. This ice-class multi-purpose duty rescue has the expertise
to build rigs of the
includes an order from New Orient Marine, vessel constructed at Keppel Singmarine LETOURNEAU™
a wholly-owned subsidiary of Maritime in Singapore. design, having
Construction Services, for a multi-purpose previously completed
16 such rigs, including
vessel; a contract from repeat and long-time The vessels were delivered on time and the COATZACOALCOS
customer Seaways International to build a with a perfect safety record, bringing (pictured), a
multi-task Anchor Handling Tug and a contract the tally of delivered ice-class vessels LETOURNEAU™
Super 116E design
from Keppel O&M’s associated yard, Nakilat- undertaken by Keppel O&M to 12. which was built by
Keppel O&M (N-KOM) to provide detailed Looking ahead, Keppel Singmarine will Keppel AmFELS in
and production engineering, technical and continue to hone its expertise in the Brownsville, USA.
commissioning support, project management ice-class market and fortify its track
and procurement support services for the record in the design, construction and
construction of a liftboat. delivery of ice-class vessels.
01
Overview / Operations Review & Outlook / Technology & Innovation / Sustainability Report / Global Network / Corporate Structure
39
Operations Review & Outlook
Keppel Singmarine continued The LETOURNEAU™ suite of jackup rig designs are
to achieve safety excellence established designs that are popular with certain market
and accolades during the year. segments and have a proven track record of operating in a
It received three SHARP Awards variety of environments. With the acquisition, Keppel will
for delivering vessels with a be able to offer customers the LETOURNEAU™ rig designs
perfect safety record. through the sale of rig kits to shipyards, or deliver ready-to-
drill rig solutions from Keppel yards worldwide.
Satellite Yards
Keppel Nantong Shipyard Another aspect of the business is the provision of aftersales
In 2015, Keppel Nantong Shipyard and aftermarket services. Keppel will be able to leverage
successfully delivered Asian its network of yards worldwide to better meet these
Hercules III, a 5,000-tonne heavy customers’ needs.
lift sheerleg crane, to Asian Lift,
a joint venture of Keppel O&M. Mr Chow Yew Yuen, CEO of Keppel O&M, said, “With the current
Completed with a perfect safety low oil price, we have seen a slowdown in newbuild rig orders.
record, the self-propelled floating Rig owners are instead looking at repairing and upgrading
crane is the largest and most their current fleet. We believe that we can make best use of
versatile of its kind in the world, our aftersales service infrastructure to service rigs of both
being able to perform single lifts the LETOURNEAU™ as well as Keppel FELS designs.”
of up to 5,000 tonnes and tandem
lifts exceeding 5,000 tonnes.
40 Keppel Offshore & Marine Ltd Report to Stakeholders 2015
Operations Review
& Outlook
Leveraging the synergy of Keppel O&M’s to build a new airbag launching slipway
global yard resources, Keppel Nantong and is working with Chinese government
Shipyard supported Keppel Singmarine in agencies to obtain the necessary
building two of the three ice-class vessels approvals in 2016.
that Bumi Armada contracted the latter
Leveraging to construct. They are both built to the
proprietary design of Keppel O&M’s ship
Keppel Nantong Heavy Industry
Now into its third year of operations,
the synergy of design and development arm, Marine Keppel Nantong Heavy Industry (KNHI)
Keppel O&M’s global Technology Development (MTD). continued to provide strong support for
Keppel O&M’s offshore projects. The majority
yard resources, After delivering Giant 5, a crane barge, of the yard development work has been
Keppel Nantong to Boskalis on time, on budget and with completed, including the new slipway which
a perfect safety record in 2014, Keppel was put to good use during the year for
Shipyard supported Nantong Shipyard leveraged the experience launching the pontoons and lower columns of
Keppel Singmarine of Giant 5 to deliver crane barge, Giant 6, a semi. During the year, KNHI delivered an
in building two of the to Boskalis ahead of schedule, within
budget and with a perfect safety record
estimated 21,000 tonnes of jackup and
semi rig components.
three ice-class in 2015. The third vessel in the series,
vessels that Bumi Giant 7, was also delivered in the same year. To strengthen its operations and capabilities,
With these deliveries, Keppel Nantong KNHI set up an engineering department
Armada contracted Shipyard has successfully built nine in 2015. It also enhanced its project
the latter to vessels in all for Boskalis. management capabilities by obtaining the
Enterprise Management Category A
construct. To increase their capabilities in the certification from the Chinese Customs,
construction of larger and heavier vessels, which will facilitate customs clearance of
Keppel Nantong Shipyard is planning foreign imported equipment and material.
01
Overview / Operations Review & Outlook / Technology & Innovation / Sustainability Report / Global Network / Corporate Structure
41
Operations Review & Outlook
02
Operations Review
& Outlook
01
In the ship repair segment,
Keppel Subic Shipyard completed
three major repair jobs, namely
a main engine crankshaft
replacement job for a bulk carrier,
repair and life extension for a
cement carrier and hull bottom
renewal and preservation works
for a power barge.
Americas Yards
Keppel FELS Brasil
Brazil’s offshore and marine
industry is facing a confluence
of challenges, including low oil
prices, tightening liquidity as
well as corruption allegations
against Petrobras and its
business partners. As a result,
all stakeholders along the supply
chain, including Keppel FELS
Brasil, have been impacted to
varying degrees. Against this
backdrop, Keppel FELS Brasil is
carefully managing its resources
and costs to tide through this
difficult period and sustain
its operations in Brazil.
02
01 Keppel Subic which is the shipyard’s fifth FPSO delivery Brazil, the FPSO will arrive at BrasFELS
Shipyard successfully
since 2010. All five projects were completed in 2Q 2016.
delivered Shell’s
Depletion Compression safely and ahead of schedule.
Platform, which is With regards to the Sete Brasil projects,
now installed in the The shipyard also completed a number BrasFELS had stopped construction of
West Philippine Sea
off the coast of of repair projects, which included semi the semis by the end of 2015 as a result
Palawan, Philippines. ENSCO 6002 for Ensco, semi ODN Tay IV of continued payment delays by the
for Odebrecht, pipelaying support vessel customer. On average, the construction
02 BrasFELS delivered Top Coral do Atlantico for Technip/ of the first four semis had progressed
FPSO Cidade de Itaguai Odebrecht, and semi Norbe VI for Odebrecht. by less than 4% each quarter since
MV26 (left) safely and In December 2015, BrasFELS performed the start of 2015. Of the six projects,
ahead of schedule
to MODEC and Toyo offshore support services for Transocean’s which are being constructed modularly
Offshore Production rig, Deepwater Navigator. The job was in Singapore and Brazil, only the first
Systems (MTOPS). completed in January 2016. two rigs are in the most advanced stages.
Operations Review
& Outlook
01
which is a natural The yard continues to focus repair jobs. The first repair job
02 Keppel Shipyard is
on completing two platform involved the inspection, repair,
extension of supply vessels for Guanabara testing and painting of the
currently performing
the conversion of Golar
its jackup Navegacao Ltda. The official semi Q4000 that was previously LNG’s LNG carrier, the
The Port of Brownsville is currently Mr Gary Smith, CEO, Golar LNG, said, “We are happy to deepen our
looking at plans to deepen the collaboration with Keppel whose impressive track record with innovative
Brownsville Ship Channel which and sophisticated conversion projects will help Golar provide a
would allow deep draft semis to fast-track and cost effective liquefaction solution to our clients
transit to Keppel AmFELS for yard looking to develop their natural gas assets. Keppel has successfully
work. This bodes well for the performed the conversions of three of our LNG carriers to Floating
shipyard as it could potentially Storage and Regasification Units in the past. We are now on track to
secure more repair and upgrade repeat that success in our floating liquefaction efforts as well.”
works in the future.
Full construction activities on the GANDRIA will only commence after
Caspian Yards Keppel Shipyard has received a notice to proceed.
Caspian Shipyard Company
Caspian Shipyard Company secured
two major upgrade contracts in
2015, including the Istiglal semi 02
upgrade contract awarded by
Caspian Drilling Company (CDC)
and the STB-1 barge strengthening
contract awarded by BP. Both CDC
and BP are repeat customers.
Operations Review
& Outlook
01
01 President of
Azerbaijan, Mr Ilham
Aliyev (extreme left),
being briefed on the
progress of the country’s
first modern semi by the
heads of Caspian Drilling
Company, State Oil
Company of Azerbaijan,
and Caspian Shipyard
Company, at the 22nd
Caspian Oil and Gas
exhibition.
Overview / Operations Review & Outlook / Technology & Innovation / Sustainability Report / Global Network / Corporate Structure
47
Operations Review & Outlook
Offshore
Newbuilds and Integration
YUNUEN 1Q KFELS B Class jackup PEMEX Keppel FELS
Maersk Integrator 1Q Ultra harsh environment jackup Maersk Drilling Keppel FELS
PV Drilling VI 1Q KFELS B Class jackup PV Drilling Keppel FELS
ENSCO 110 1Q KFELS B Class Bigfoot jackup Ensco Keppel FELS
KUKULKAN 1Q KFELS B Class jackup PEMEX Keppel FELS
Prime Exerter 1Q Jackup integration Primepoint Caspian Shipyard
Company
Floatel Endurance 2Q Accommodation Floatel International Keppel FELS
semisubmersible
Depletion Compression 2Q Depletion compression platform Shell Philippines Keppel Subic Shipyard
Platform Exploration BV
UMW Naga 8 3Q KFELS B Class jackup UMW Keppel FELS
ARABDRILL 70 4Q KFELS B Class jackup Arabian Drilling Co. Keppel FELS
Marine
Conversions,
Repair and Upgrade
Ningaloo Vision 1Q FPSO upgrade Apache Energy Keppel Shipyard
FSO Gaza 1Q Turret fabrication Emas AMC Keppel Shipyard
Cidade de Itaguai MV26 2Q Integration of topside MTOPS Keppel FELS Brasil
modules
Ichthys 2Q Turret fabrication SBM Offshore Keppel Shipyard
Tullow 2Q Turret fabrication SOFEC Keppel Shipyard
Turritella 3Q FPSO conversion and turret SBM Offshore Keppel Shipyard
fabrication
Oleg Strashnov 4Q Heavy vessel repair Seaway Heavy Lift Keppel Verolme
Belford Dolphin 4Q Drillship repair Dolphin Drilling Keppel Shipyard
Newbuild Vessels
Giant 6 1Q Crane barge Smit Shipping (Boskalis) Keppel Nantong Shipyard
SST PARINTINS 1Q Tug Smit Rebras Keppel Singmarine Brasil
Asian Hercules III 2Q Floating sheerleg crane Asian Lift Keppel Nantong Shipyard
Bumi Naryan-Mar 3Q Ice-class multi-purpose duty Bumi Armada Berhad Keppel Singmarine
rescue vessel
Bumi Uray 3Q Ice-class supply vessel Bumi Armada Berhad Keppel Singmarine
Bumi Pokachi 3Q Ice-class supply vessel Bumi Armada Berhad Keppel Singmarine
Giant 7 4Q Crane barge Smit Shipping (Boskalis) Keppel Nantong Shipyard
48 Keppel Offshore & Marine Ltd Report to Stakeholders 2015
Operations Review
& Outlook
01 Repeat customer In 2015, AHI successfully repaired These projects included the first liftboat
Stena Drilling regularly
138 vessels for a mix of international unit that was built in Qatar for Gulf Drilling
sends its rigs such
as Stena Don to clients including Boskalis, Smit Lamnalco, International; two floating jetties for
Keppel Verolme for Swire Pacific, McDermott International, Qatar Primary Materials Company; the
repairs and upgrading. Hercules Offshore and Van Oord Ship world’s first MEGI (Main Engine Gas
Management, as well as local Injection) conversion of a Nakilat Qatar-Max
02 Apart from LNG customers including Middle East (Q-Max) LNG carrier to run on LNG as an
bunkering, Keppel O&M Dredging Co. and IRSHAD. AHI also alternative fuel; the construction of jackets,
is able to meet the needs
for sustainable shipping commenced construction for a piles and a bridge for Technip; and a second
with solutions such as newbuild Self-Installing Platform for Ballast Water Management System
tug designs with dual- TOA Corporation during the year. installation on a vessel. Leveraging its
fuel LNG diesel engines.
expertise in construction, N-KOM also
Nakilat-Keppel Offshore & Marine managed to win an order for the fabrication
Versatile and equipped with modern of 16 bitumen storage tanks.
facilities, Nakilat-Keppel Offshore
& Marine (N-KOM) has the capability to In the repair segment, N-KOM’s share of
deliver a diverse range of offshore and the region’s repair market rose from 18% in
marine solutions, which can be seen in 2014 to 23% in 2015. N-KOM’s marketing
the wide array of projects completed efforts for its tanker services also paid off
during the year. as the shipyard tripled its tanker repair
01
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49
Operations Review & Outlook
Operations Review
& Outlook
Asian Hercules II to carry out a tandem lift Keppel Smit Towage also faced
for the 5,300-tonne upper hull of an headwinds in Indonesia and Malaysia’s
accommodation semi for Keppel FELS. time charter markets because of rising
competition amidst challenging market
With Asian Hercules III, Asian Lift’s conditions. Business in China was
fleet size increased to a total of five also weak amidst a slowing economic
sheerleg cranes, including the 400-tonne environment. On the other hand,
Asian Helping Hand III, the 1,600-tonne business was robust in Taiwan.
Asian Hercules and the 3,200-tonne
Asian Hercules II. The addition of the Looking ahead, Keppel Smit Towage
high-capacity Asian Hercules III will will continue to focus on maintaining
broaden Asian Lift’s market coverage revenue streams while controlling costs.
and enable it to seize opportunities A well-maintained fleet and strong track
such as offshore installations and record will work well to Keppel Smit
decommissioning work, which are Towage’s advantage.
outside its traditional markets.
Regency Steel Japan
Keppel Smit Towage/ Regency Steel Japan (RSJ)’s core
Maju Maritime competency is in producing high quality
In Singapore, the volume of towage racks and chords for jackup rigs. In 2015,
work from offshore yards and the spot it produced eight sets of rig racks and
market had decreased substantially chords for Keppel FELS.
while pricing had been under pressure. The
challenging environment notwithstanding, With the rig market facing a downturn,
Keppel Smit Towage continued to retain its RSJ had stepped up on sales efforts in
existing harbour towage clients while the domestic market and secured almost
attracting new ones. twice the amount of domestic orders
Overview / Operations Review & Outlook / Technology & Innovation / Sustainability Report / Global Network / Corporate Structure
51
Operations Review & Outlook
in 2015 compared to the previous year. ceiling to defend its market share. The 01 Asian Hercules III,
the largest heavy-lift
It manufactured two convertors for lifting of economic sanctions on Iran, which
sheerleg crane of its
Nippon Steel and Sumitomo Metal has capacity to export oil at current oil kind in the world, can
Corporation Kimitsu Works, steel blast prices, also added pressure to the already perform single lifts of
furnace components for Nippon Steel and oversupplied oil market. By IEA’s estimate, up to 5,000 tonnes.
Sumitomo Metal Corporation Oita Works Iran is expected to increase production from
and four sets of retort for Titanium Mill. 2.8 million barrels per day (bpd) to about 02 Keppel O&M will
3.5 million bpd within six months of the continue to look out for
potential orders while
Industry Review & Outlook lifting of sanctions. executing its deliveries in
Although the decline in oil prices started 2016 in a timely manner.
almost two years ago in June 2014, there On the back of low oil prices and market
is still no visibility of a steady recovery in uncertainty, many oil companies have
sight, especially when a number of key reduced their capital expenditures and
developments in 2015 increased the engaged in ‘blend and extend’ rig contract
volatility of market conditions. agreements, in which vessel owners agree to
lower dayrates in exchange for a longer
China, the world’s biggest energy consumer, charter period.
recorded an economic growth of 6.9% in
2015, its slowest in 25 years. According In turn, several drilling contractors have
to the International Energy Agency (IEA), scaled back their fleet renewal and
China’s economy is undergoing a structural expansion plans. Major contractors like
shift that encompasses a transition to Transocean and Ensco have delayed their
a less energy-intensive growth model. newbuild deliveries, while many shipyards
around the world are in discussion with
On the supply side, the Organisation of the customers over the cancellation or delay
Petroleum Exporting Countries (OPEC) of projects. Contractors have also been
continued to resist lowering its production stacking and scrapping rigs to lower their
02
52 Keppel Offshore & Marine Ltd Report to Stakeholders 2015
Operations Review
& Outlook
01
01 Keppel O&M delivered operating expenditure. Since June 2014, sanctions in Iran could bolster rig demand.
the accommodation
14 jackups and 42 floaters have been removed In Mexico, the award of three shallow-water
semi to Floatel on time,
on budget and safely, from the global rig fleet. blocks by the country’s Natural Hydrocarbons
and will continue to work Commission is an encouraging sign and may
closely with its clients to Orders for production units also slowed down stimulate demand for jackups and floaters
deliver quality products
to their satisfaction. in 2015, as operators postponed investment eventually. Even with the current low oil prices,
decisions on the back of volatile oil prices. the long-term fundamentals of Mexico’s
Decommissioning of older floating production offshore oil and gas industry remain strong.
02 Keppel O&M has
the versatility and systems in ageing fields had, on the other Keppel O&M is well-positioned to capture
capabilities to design hand, increased. opportunities from the opening up of Mexico’s
and build non-drilling oil and gas sector in partnership with national
products that are in
demand, such as the Offshore Rigs oil company PEMEX.
liftboat, Al Safliya, that With the current low oil prices, the replacement
N-KOM built to the ORCA cycle for ageing rigs could be accelerated As rig demand continues to come from these
2500 design developed
by Keppel O&M’s design
with operators looking to scrap old and regions and ageing rigs get stacked or scrapped,
arm, Bennett Offshore. unproductive rigs rather than to maintain Keppel O&M will continue to look out for potential
them. This will hasten a rebalance of demand orders while executing its deliveries in 2016 in
and supply in the offshore market and should a timely manner. In the first three months of
bode well for the rig market in the longer term. 2016, it has delivered the first two of five Grupo R
jackups chartered by PEMEX for the Gulf of
The rig market in the Middle East has been Mexico, a jackup rig and liftboat for Gulf
resilient, with the number of employed rigs Drilling International, and is on track to deliver
remaining constant. In addition, the lifting of an accommodation semi for Floatel in April.
Overview / Operations Review & Outlook / Technology & Innovation / Sustainability Report / Global Network / Corporate Structure
53
Operations Review & Outlook
With its extensive suite of proprietary planning are FPSO units and liquefaction/
solutions and prudent investment in Research regasification floaters. According to Douglas-
& Development, Keppel O&M is able to serve Westwood, global LNG capital expenditure
a wide spectrum of customers in both drilling could reach as much as US$259 billion by
and non-drilling markets. Non-drilling 2019. This would include spending on baseload
solutions made up more than a third of onshore and offshore liquefaction equipment,
Keppel O&M’s orderbook as at end 2015. LNG carriers and re-gasification facilities for
With its own series of liftboat and multipurpose onshore and offshore terminals.
vessel designs, Keppel O&M will be able to
support its customers in the maintenance Building on its experience and track record
of most shallow water oil and gas fields. for complex offshore conversion projects,
Keppel O&M is poised to become a total
Floating Production Units solutions provider for the LNG industry.
It is estimated that more than half of the 251 In 2008, it successfully converted the world’s
floating production system projects under first FSRU, which was closely followed by the
02
54 Keppel Offshore & Marine Ltd Report to Stakeholders 2015
Operations Review
& Outlook
award of two more FRSU projects. In 2014, and Keppel O&M’s expertise with LNG 01 The marine division
of Keppel O&M will
it became the first shipyard to undertake the vessels. The first LNG bunker delivery is
look out for pocket
conversion of an FLNG vessel. slated in 2017. of opportunities in
retrofit work such
In recent years, the company has equipped The prospect of supplying LNG as a fuel as re-engining,
dual-fuel conversion
itself to capture a wider range of opportunities for ships in Singapore, one of the world’s and installation
in the gas business, expanding its offerings to most strategic ports, is encouraging. As the of ballast water
include both onshore and offshore liquefaction shipping industry’s demand for green solutions treatment systems.
as well as LNG transportation solutions. continues to rise, Keppel O&M will also be
able to help meet the needs for sustainable 02 Mr S Iswaran
LNG produces considerably lower emissions shipping through offering solutions such (centre with red tie),
Singapore Minister
than conventional marine fuel and can as tugs designed with dual-fuel diesel LNG for Trade and Industry
significantly reduce a vessel’s environmental engines, as well as the retrofitting of vessel (Industry), being briefed
impact. With the securing of the licence in engines to run on LNG. on Keppel’s LNG
solutions at Gastech
February 2016 to supply LNG bunker to 2015 Conference &
vessels in the Port of Singapore, Keppel Looking ahead, Keppel O&M’s concerted Exhibition.
O&M and BG Group, now part of Shell, gas strategy and its enhanced suite of
will collaborate to deliver an end-to-end non-drilling solutions will help to mitigate
bunkering solution combining LNG sourced the impact of weak demand for drilling rigs
from BG Group’s diversified LNG portfolio on the Group.
01
Overview / Operations Review & Outlook / Technology & Innovation / Sustainability Report / Global Network / Corporate Structure
55
Operations Review & Outlook
02
Technology
& Innovation
As a partner for solutions, conducting R&D to develop new
Overview Keppel Offshore & Marine
(Keppel O&M) is continuously
technologies and processes
into areas such as seabed nodule vessels that are equipped with
harvesting, subsea, deepwater robust ice-breaking capabilities
and ultra-deepwater drillships, and excellent calm water
ultra harsh environment drilling performance. These vessels are
semisubmersibles (semis), capable of breaking through open
tension leg platforms, innovative floating first-year ice of 600 to
dry tree semisubmersibles 800mm thick and 800 to1000mm
(E-Semi), innovative ship designs thick in shallow draft conditions.
and shipyard technology to
improve shipyard processes Besides ice-class vessels,
and productivity. KOMtech also made progress in
offshore oil rig designs, including
The shallow water technology arm automated high capacity rack and
focuses on arctic jackup designs, pinion elevating systems, versatile
offshore wind solutions, LNG spudcan designs and automated
applications and drilling solutions. self-positioning and skidding
cantilevers.
Innovative Designs
Ice-Class Vessel New Liftboat Design
Through our long-term investment Through its design arm,
in research and technology, Bennett Offshore, Keppel O&M
KOMtech filled a gap in the also leveraged its jackup rig
market by developing ice-class technologies and expertise to
designs for supply and multi- develop a series of liftboat 01
purpose duty rescue vessels. designs, such as the ORCA 1500,
ORCA 2500 and ORCA 3500.
Prior to the development of these The ORCA series of liftboats can Liftboats have increasingly been 01 Keppel is currently
building a second
designs, there were no off-the- undertake a wide range of shown to be a more efficient
liftboat to the ORCA
shelf ice-class vessel designs services, such as well servicing, alternative to traditional non-self design, developed by
capable of meeting operational commissioning, maintenance propelled and self-elevating units. Keppel O&M’s design
requirements in the North and decommissioning of Its ability to mobilise without the arm, Bennett Offshore.
Caspain Sea. KOMtech designed offshore platforms. assistance of support vessels
Deepwater Technology/Subsea Shallow Water/Arctic/Wind Drilling & Critical Equipment Marine Technology
Technology
& Innovation
KOMtech works
closely with
key business leaders
and academic
forerunners in order
to develop innovative
solutions that are
commercially viable
and adaptable
to the needs of
the industry.
01
natural gas liquefaction technology, PreNEx is developed at a time when natural gas is 01 The mid-water
semisubmersible is a
(Pre-cooled Nitrogen Expansion). It offers a rising in importance as an energy resource and
robust and cost effective
simple, safe and reliable alternative to other alternative marine fuel globally. KOMtech’s drilling solution that
nitrogen expansion processes, and can be focus on LNG solutions is also in line with MPA’s is suitable for harsh
employed for offshore and onshore purposes, objective of establishing Singapore as an LNG environment operation.
such as Floating Liquefaction (FLNG) and bunkering port by 2020.
land-based liquefaction facilities. 02 Keppel Singmarine’s
Apart from the LNG vaporiser and LNG Fuel Gas delivery of two ice-class
supply vessels and one
For its design of an Azimuth Stern Drive (ASD) Systems (LFGS), KOMtech also incorporates ice-class multi-purpose
tug with a 65-tonne bollard pull capacity smart designs into its tug to enhance safety duty-vessel bears
which can run on both LNG and diesel fuel, and comfort. For instance, the LNG vent and testimony to KOMtech’s
efforts in furthering ice-
KOMtech was awarded the Outstanding piping are arranged in such a way that the class vessel technology.
Maritime R&D and Technology Award in April accommodation quarters in the lower deck
2015 by the Maritime and Port Authority of area are situated away from the potential
Singapore (MPA). danger zone.
KOMtech’s new tug design project is a wholly The LNG fuel is also carried in containerised,
in-house R&D effort and the tug uses LNG, type-C ISO-certified tanks on the main deck,
a greener and cheaper fuel than the current and re-fuelling can be as simple as replacing
marine fuel oil. The dual-fuel engine tug design the empty tanks with replenished ones.
02
1 Platform Supply Vessel 3 Specialised Vessels 5 Submersible 7 Semisubmersible Support and 9 Semisubmersible Drilling Tender (SSDT) 11 Drillship 13 Floating Production Storage and 15 Floating Storage and Re-gasification 17 Floating Liquefied Natural 19 Icebreaker
Maintenance Unit Offloading Facility (FPSO) Unit (FSRU) Gas Facilities (FLNG)
2 Anchor Handling Tug/ 4 Semisubmersible 6 Multi-Purpose Self-Elevating 8 Jackup Rig 10 Semisubmersible Drilling Rig 12 Extended Tension Leg Platform (ETLP) 14 SPAR 16 Semisubmersible Floating 18 Ice-class Floating Storage 20 Ice-worthy Mobile Offshore Drilling Unit
Supply Vessel (AHTS) Accommodation Unit (SSAU) Platform (MPSEP) Production Unit (FPU) Offloading vessel (FSO)
1 Platform Supply Vessel 3 Specialised Vessels 5 Submersible 7 Semisubmersible Support and 8 Jackup Rig 9 Semisubmersible Drilling 11 Drillship 13 Floating Production Storage 15 Floating Storage and 17 Floating Liquefied Natural Gas 19 Icebreaker
(All waters) (All waters) (Shallow water <30 ft) Maintenance Unit (Shallow water – 500 ft) Tender (SSDT) (Ultra-deep water – 12,000 ft) and Offloading Facility (FPSO) Re-gasification Unit (FSRU) Facilities (FLNG) (All waters)
• Specially designed to supply • Pipe Laying Vessel • Mobile unit which sits entirely on (Deep water) • Self-elevating mobile drilling unit (Deep water – 6,000 ft) • Able to undertake (Deep water) (All waters) (All waters) • A support vessel that forges
offshore oil platforms • Diving Support Vessel the seabed during operation • A floating platform to support that stands on its legs on the • A floater that operates alongside ultra-deepwater drilling • Ship-shaped facility used • Able to receive LNG from a carrier, • Able to treat and liquefy Natural passages through icy waters
- 4500 Dwt PSV maintenance and upgrading seabed during operation SPARs and Tension Leg Platforms – CAN-DO Drillship for the processing of oil re-gasify to natural gas and send Gas as well as store and transfer
works for FPSOs with high – KFELS MOD VI – SSDTTM 5000NG or gas, storage and offloading out through risers and pipelines LNG at sea
operation uptime – KFELS A Class – SSDTTM 3600E of oil or condensate
– SMART Semi – KFELS B Class
– KFELS Super A Class 14 SPAR 16 Semisubmersible Floating Production 18 Ice-class Floating Storage 20 Ice-worthy Mobile
12 Extended Tension
2 Anchor Handling Tug/ 4 Semisubmersible 6 Multi-Purpose Self-Elevating – KFELS Super B Class 10 Semisubmersible Drilling Rig (Deep water – 8,000 ft) Unit (FPU) Offloading vessel (FSO) Offshore Drilling Unit
Leg Platform (ETLP)
Supply Vessel (AHTS) Accommodation Unit (SSAU) Platform (MPSEP) – KFELS C Class (Deep water – 10,000 ft) • A large cylindrical unit which (Deep water) (All waters) (Shallow water – 180 ft)
(Deep water – 8,000 ft)
(All waters) (All waters) (Shallow water – 213 ft) – KFELS G Class • A floating unit which can perform supports a rig platform, and • A floating platform used to • Ice-resistant vessel that • Able to operate in the
• Equipped for emergency • Floating unit that provides • A wind turbine installation – KFELS N Class deepwater drilling operations • A vertically moored floating anchors it to the seafloor using produce oil and gas in deepsea receives crude oil from harsh Arctic region
stand-by/rescue, oil recovery accommodation for crew vessel which can also support – KFELS N Plus – DSSTM 20
structure used for the production cables and chains – DeepDraft Semisubmersible a fixed platform and offloads – Gemini
and fire fighting – SSAU™ 3600 oil and gas activities – KFELS J Class – DSSTM 38
of oil or gas it to shuttle tankers
– DSS™ 20NS – KFELS E Class – DSSTM 38M
– SSAU™ 5000NG – DSSTM 51
– DSSTM 38E
– DSSTM 51HE
– DSSTM 60HE
– SSDU 5000
60 Keppel Offshore & Marine Ltd Report to Stakeholders 2015
Technology
& Innovation
01
Overview / Operations Review & Outlook / Technology & Innovation / Sustainability Report / Global Network / Corporate Structure
61
Technology & Innovation
01 The Keppel-NUS
Corporate Laboratory
pursues three major
research thrusts:
(clockwise from left)
Future Systems
(Deepwater Technology
and Arctic Technology),
Future Resources,
(Deepsea Mining,
including research on
polymetallic nodules)
and Future Yards
(Robotics and
Automation).
02 Professor Stefan
Thomke (standing),
a member of the
Keppel Technology
Advisory Panel,
shared on innovation
management during
the two-day workshop
with Keppel O&M’s
senior management
and employees.
02
The expedition saw researchers surveying In conjunction with the 18th KTAP meeting
the polymetallic-nodule claim areas in in Singapore on 17 November 2015, KTAP
the Clarion-Clipperton Fracture Zone in member, Professor Stefan Thomke, conducted
the tropical East Pacific Ocean. Biological, a two-day workshop on the dynamics and
geological and oceanographic data were processes of innovation. His sharing centred
obtained and biological samples, nodules, on three main topics, namely innovation
sediment and photographs of the seabed systems, leadership and sustainable growth.
were collected. Participants, including Keppel O&M’s senior
management, brainstormed action plans,
Deepening Industry Knowledge including creative ideas for reusing materials
To keep up to date with the latest industry at the shipyard.
offerings, Keppel O&M continually engages
forerunners in the fields of business and Separately, Keppel O&M hosted a delegation
academia with the Keppel Technology from the ISO Technical Committee for Offshore
Advisory Panel (KTAP). During these Structures on 20 January 2016 to exchange
meetings, KTAP members bring to the table ideas on how technological innovations can
the latest in their respective fields, which improve work processes in the offshore and
have contributed to Keppel’s innovation marine industry. Following a robust discussion
and technology over the years. on production and engineering automation,
the delegates toured the yard to better
understand operations within the facility.
Sustainability Keppel Offshore & Marine believes that
what is good for the community is good
Report for our business. We are committed to
conducting our operations in a sustainable
and socially responsible manner which
positively impacts society, the community,
the environment, employees and
all other stakeholders.
Managing
Sustainability
As an industry leader operating in 15 countries,
we have developed guidelines in being a responsible
corporate citizen, positively impacting all our
stakeholders, in health and safety, risk management,
productivity, people and community development.
Safety
Excellence
Safety is a core
value and top priority
wherever we operate.
Whether in an industry
boom or downturn,
we remain steadfast
in our commitment
to create a safe
and healthy work
environment that
safeguards people,
property and the
environment.
01
HSE Awards Upholding High Standards in 2015 was reduced to 111 01 Regular training
sessions are held for
In the current down cycle, while we man-days lost per million man-
34
all our stakeholders,
look to reduce costs and optimise hours worked compared to 132 from employees to
operations, safety remains the in 2014. subcontractors, to
ensure that the best
priority in all of Keppel Offshore &
safety practices are
Marine’s (Keppel O&M) global While we have made improvements applied in our yards.
Workplace Safety and operations. We firmly believe in our safety journey, we suffered
Health Awards received. that a strong safety culture brings three fatalities; one in Singapore
about a more productive workforce and two overseas. We thoroughly
and reduces business risks. investigated each incident and
Through meticulous execution, shared the lessons learnt across
we work towards our Health, the Group. We also stepped up our
Safety and Environment (HSE) safety efforts to prevent the
vision of being “Incident Free” recurrence of such incidents.
– zero accident, zero loss, no
harm to people and no damage Unwavering Commitment
to the environment. We believe that visible safety
leadership directly influences our
In 2015, we invested about workforce and helps in building a
$41 million to improve our stronger safety culture.
infrastructure, as well as empower
and train our people, so that we The Keppel O&M Board Safety
remain at the forefront in our Committee (BSC) formed in 2012
safety measures and strategies, sets the safety directives for our
especially in a constantly evolving yards around the world. Continuing
work environment. from 2014, our focus in 2015 built
on tackling serious injuries and
Through consistency of best fatal incidents at the fundamental
practices and rigour, Keppel O&M level. Relevant cases were
achieved an Accident Frequency deliberated at quarterly meetings
Rate (AFR) of 0.10 per million and key lessons learnt were
man hours worked in 2015, a shared with all our yards to ensure
reduction from our AFR of 0.11 that we maintain the same high
in the previous year. Similarly, safety standards in all our
our Accident Severity Rate (ASR) global operations.
Overview / Operations Review & Outlook / Technology & Innovation / Sustainability Report / Global Network / Corporate Structure
65
Sustaining Growth – Safety Excellence
To ensure that the safety practices management system (SS506), in Nantong Shipyard and Bintan Our Safety
are relevant in the countries alignment with Keppel Shipyard Offshore, to guide, support Principles
where we operate in, each yard and Keppel Singmarine’s and align safety standards.
also develops and updates its own compliance to the same standards. In May 2015, Mr Yong Chee Min,
1. Every incident is
HSE Improvement Plan, which Similarly, our yards in Azerbaijan, Director (HSE & Special Projects), preventable.
encompasses a range of unique Brazil, China, Qatar, Netherlands, conducted safety workshops for
strategies and initiatives. UAE and USA have also been Keppel Nantong’s management, 2. Health, Safety &
certified to OSHAS 18001 Safety/ employees and subcontractors. Environment (HSE)
Strengthening Our Safety Health MS and ISO 14001 is an integral part
Culture Environmental MS. The Keppel O&M Cross Business of our business.
Across our 20 yards, safety Unit Audit introduced in 2012 3. HSE is a line
promotion campaigns are Besides complying with industry ensures that the best safety responsibility.
organised annually to highlight best practices, we continually practices are adopted and
specific risks while encouraging improve ourselves through implemented by our overseas 4. Everyone is
safe behaviour and best practices. innovation and technology. yards. The second round of empowered
At the annual Keppel Group cross audits was completed in
to stop any
unsafe work.
Keppel FELS held its month-long Safety Convention, out of 48 end 2015 and focused on the
campaign, themed “Stay Safe, Safety Innovation projects implementation and execution 5. A strong safety
Avoid Line of Fire”, in July 2015 to submitted Group wide, Keppel of the HSE Improvement Plan culture is
remind workers of the importance O&M business units picked up in each yard. The audits also achieved through
of situational awareness. In the nine Gold, seven Silver and eight examined how well each yard teamwork.
Marine division, Keppel Shipyard Bronze awards. The innovative addressed the top eight systemic
conducted a ‘Hand and Fingers’ solutions which have been root causes of major incidents in
safety campaign in July 2015 to developed into actual products their respective yards.
reinforce the importance of ensure that work processes are
safe manual work while Keppel made safer for all our workers. To ensure that High Impact Risk
Singmarine organised a HSE Day, Activities (HIRA) are carefully
themed “Back to Basics” in Proactive Engagement observed in daily work processes,
October 2015, to improve safety While each of Keppel’s global a set of HIRA animations and
fundamentals. yards operates independently, pamphlets were developed and
Keppel O&M’s HSE department translated into nine different
In our overseas yards, Nakilat- plays a pivotal role in engaging languages to engage the diverse
Keppel Offshore & Marine (N-KOM) each yard to ensure that safety workforce in our yards. In order
held a Safety Excellence Day messages, programmes and to reach out to our large
with the theme “One Family, One best practices are shared and workforce, regular HSE sharing
Vision towards Safety Excellence” implemented. sessions are conducted at our
in June 2015. Keppel Nantong yards and dormitories in
also held a month-long safety HSE personnel in Singapore are Singapore. Safety initiatives are
promotion campaign to promote regularly assigned to overseas also regularly communicated
positive safe behaviour. During yards, such as Baku Shipyard, through HSE newsletters, as well
the same period, Keppel Keppel Subic Shipyard, Keppel as sharing sessions.
Singmarine Brasil launched its
annual ‘Safety Prevention Week’
to inculcate safety awareness. Keppel O&M Safety Statistics
Safety
Excellence
01 To inculcate a strong
safety mindset among
our employees and
subcontractors, regular
safety workshops
are conducted by
Keppel O&M’s HSE team.
02 For achieving
excellence in workplace
safety, Keppel O&M
clinched 34 Workplace
Safety and Health
(WSH) awards at WSH
Awards 2015.
01
In November 2015, Keppel Shipyard’s Well-being and Support trade sections’ representatives,
Corporation organised the Centre, completed in March 2015, meets regularly to discuss
inaugural Global HSE Workshop, provides counselling and medical safety initiatives and share best
which saw over 50 Keppelites care to workers. Two four-storey practices. At Keppel Shipyard, the
from around the world gather rest areas, which can host up to Contractors’ HSE Watch Group
to share best practices, discuss 4,000 workers during meal breaks collaborates closely with both the
safety issues and brainstorm on have also been completed. workforce and contractors to
ways to address them. Some of prevent incidents in our yards.
the solutions include empowering Health and wellness initiatives,
supervisors and workers to including exercise programmes, Recognised as bizSAFE Partners,
proactively instil safe work habits, as well as fruits and nutritious Keppel FELS and Keppel Shipyard
strengthening risk management food distribution, are made actively encourage our contractors
and implementing controls on available to all employees across to ultilise the bizSAFE framework
high risk activities as well as Keppel O&M. To protect workers to build their safety capabilities
actively engaging the workforce. from occupational injuries, healthy and competencies.
lifestyle initiatives, encompassing
Improving Employees’ hearing conservation and To contribute towards improving
Well-Being respiratory protection initiatives, safety standards in the industry,
In line with the Workplace Safety were also introduced. Keppel O&M partners and
and Health Council’s (WSHC) supports national and trade
integrated Total WSH approach, Strong Partnership organisations such as
Keppel O&M believes that the Keppel O&M shares a strong Ministry of Manpower (MOM),
work environment, overall safety, working relationship with all the WSH Council, and the
health and well-being of our our stakeholders, including Association of Singapore Marine
employees are strongly connected. our employees, customers, Industries (ASMI). As a Group,
subcontractors and suppliers, Keppel has also been a regular
Recognising that fatigue and industry members and contributor and sponsor of
poor health would contribute to regulatory bodies. annual national safety events,
accidents, Keppel O&M constantly including WSH Conference,
seeks to improve employee Keppel FELS’ Subcontractors National WSH Campaign and
well-being by upgrading its Executive Council Safety bizSAFE Convention.
facilities. For instance, Keppel Committee, comprising different
Overview / Operations Review & Outlook / Technology & Innovation / Sustainability Report / Global Network / Corporate Structure
67
Sustaining Growth – Safety Excellence
With its experience and wide in various committees in the WSH implementing a workbench for
exposure, Keppel O&M is proud Council and ASMI. Mr Chow Yew scaffold coupler repairs while
to take an industry leadership role Yuen, CEO of Keppel O&M is on Keppel Singmarine clinched the
in safety and regularly conducts the board of the National WSH WSH Performance (Silver) award
safety sharing sessions at Council and also chairs the WSH for its strong workplace safety
seminars and forums. During Council National Work at Heights and health management system.
the annual Air Defence and Safety Taskforce. Mr Yong Chee
Operations Command (ADOC) Min is the Chairman of the ASMI Our overseas yards also garnered
Safety Forum organised by WSH Committee, as well as a accolades for their high safety
the Republic of Singapore Air member of the WSH Council standards. In 2015, Caspian
Force (RSAF) on 13 April 2015, National Work at Heights Safety Shipyard Company (CSC)
Keppel O&M shared on its safety Taskforce and the WSH Council emerged as one of 39 winners in
management system, as well as (Marine Industries) Committee. a safety and health awards event
the various programmes and Mr Wong Kok Seng, Managing organised by the Azerbaijan Trade
initiatives to strengthen its safety Director (Offshore), Keppel O&M, Unions Confederation, affirming
culture. We participated in the and Managing Director of Keppel the yard’s continuous efforts in
“Confined Space Safety in Marine FELS, as well as Mr Chor How Jat, creating a safe and healthy work
Industry” seminar organised by Managing Director, Keppel environment for all employees.
ASMI on 17 March 2015, where Shipyard, both sit on Singapore’s
we shared on Keppel O&M’s WSH Council (Marine Industries) Apart from accolades from
confined space safety practices Committee. government agencies and
as well as our emergency industry associations, our
response preparations. In 2015, Hallmark of HSE Excellence customers also recognise our
Keppel O&M also hosted For achieving excellence in safety accomplishments in
delegations from different workplace safety, Keppel O&M various projects. This includes a
companies, including SIA clinched 34 Workplace Safety commendation received by Keppel
Engineering Company and and Health (WSH) awards at the Shipyard from Shell in December
Shell Singapore, to showcase annual event ceremony held on 2015 for having successfully
our multi-pronged approach 29 July 2015. This is the largest converted the Floating Production
towards safety. number of awards won by a single Storage & Offloading (FPSO)
organisation in Singapore. 31 of vessel, Turritella, with a solid
Keppel O&M’s HSE professionals the awards were in the Safety safety record of 13.1 million
have also contributed to the and Health Award Recognition man-hours worked without any
upkeep of the industry’s safety for Projects (SHARP) category. lost-time incidents.
standards. A few members of Keppel Shipyard also bagged
Keppel’s senior management sits the WSH Innovation Award for
02
68 Keppel Offshore & Marine Ltd Report to Stakeholders 2015 Sustaining Growth
Productivity
and Quality
Through continuous improvements and innovations, we seek to
raise productivity and quality so as to optimise our operations
and sustain our competitiveness.
01
At Keppel Offshore & Marine equipment, processes and systems block in September 2015.
(Keppel O&M), our strong track across our shipyards worldwide to Besides enhancing the working
record for safe, on time, within sustain our high-performing work environment, Keppel Shipyard
budget and high quality deliveries environments. also installed a new 250-tonne
is the result of our execution quay crane at the Benoi Yard for
excellence, which is advanced Over at Keppel Shipyard’s Tuas better execution of workflow,
through our continuous efforts Yard, a new well-being centre further increasing the productivity
towards productivity and quality has been operational since March of its workforce.
improvements. 2015. It also includes a counselling
centre, medical centre and fire Across Keppel O&M, various
We leverage technology and station. We believe that looking productivity initiatives and
innovation to refine our processes after the well-being of workers programmes were rolled out
and strengthen our infrastructure. will result in a safer and more during the year. The Productivity
In addition, we actively organise productive workforce. Three PLUS Programme for 2015/2016
and participate in various workers rest areas – two in Tuas was launched on 23 Apr 2015,
productivity, quality and innovation Yard and one in Gul Yard – were providing a framework for
initiatives to generate ideas and also commissioned. Keppel Shipyard to work on Total
solutions for optimal operations. Productivity. Total Productivity
Keppel Shipyard’s clients at is a holistic approach in improving
Optimising Operations Benoi Yard also enjoyed improved productivity by not just reducing
In 2015, we continued to make facilities when they moved into manhours – it also considers
upgrades to the infrastructure, a new superintendent office labour costs, efficient capital
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69
Sustaining Growth – Productivity and Quality
deployment, and profit to developing mobile applications with the software, eliminating
value-added ratio. The focus is to to improve communication and the need to do so manually.
identify key processes in the value productivity of work processes
stream and then either develop within project teams and utilising In addition, the teams developed
new processes or enhance existing Radio-Frequency Identification the Master Cable Schedule for
ones for maximum leverage. (RFID) technologies to improve productivity enhancements and
material management. other customisations with the
In addition, Keppel O&M is SM3D software. This includes
incorporating technology to As for Keppel Singmarine, its a customised interface between
optimise its processes. Keppel Computer Aided Design and profile cutting robots.
FELS collaborates extensively Computer Aided Manufacturing
with partners to improve operation (CAD/CAM) teams have been Spurring Innovation
systems. These improvements working on implementing Keppel O&M encourages
include enhancing the capabilities auto-cable routing capabilities in employees at all levels to join
of 3D modelling to improve the SM3D software modelling platforms for sharing and
collaboration among customers, system. With this, the routing of developing their ideas for
project teams and engineers, cables can be done automatically improvement.
02
01 A life-size 3D
projection that covers
a whole room helps
Keppel FELS enhance its
3D modelling capabilities
to improve collaboration
among customers,
project teams and
engineers.
02 Keppel O&M
constantly looks into
ways at improving
yard productivity and
capability, such as
installing a 1,500-tonne
gantry crane in Keppel
Subic Shipyard that can
take on bigger projects
more efficiently.
70 Keppel Offshore & Marine Ltd Report to Stakeholders 2015 Sustaining Growth
Productivity
and Quality
Employees of Keppel O&M were A third category, “Productivity 5000NG design, the world’s first 01 More automation
introduced to the yard
active participants of the inaugural Gems”, recognises incremental purpose-built drilling tender
workshops, including a
Keppel Innovation Convention, or small-scale projects that have to operate in the North Sea by customised panel line
which was held on 15 June 2015. improved productivity, or raised Deepwater Technology Group system, help increase
A platform to foster an innovative the quality of existing products and Keppel FELS; and the new efficiency.
culture and recognise outstanding or services. One of Keppel O&M’s KFELS N-Plus jackup design
innovations across the Keppel winning entries in this category with enhanced cantilever load 02 BrasFELS, Keppel
Group, the convention also aims to is a semi-automated blasting chart and spudcan design O&M’s shipyard in Brazil,
annually holds an
encourage Keppelites to exchange system that saw a reduction by Offshore Technology innovation competition to
best practices and embrace new in manpower and grit usage. Development, Keppel FELS challenge its employees
ideas and methodologies. Another winning entry is an and Keppel Offshore & Marine to conceive solutions that
help raise productivity
automated welding process that Technology Centre. and reduce costs.
As part of the convention, there is less manpower intensive and
was an innovation competition faster than manual welding on The use of technology to
which attracted entries from curved surfaces. improve work processes is also
Singapore and overseas encouraged through Keppel FELS
business units. Business units In 2015, Keppel O&M held its Innovation and Quality Circles
from Keppel O&M did well in this third Keppel O&M Innovation (iQC), which came up with projects
competition, securing the top Awards competition. The during the year to innovate and
three places in the “Realised competition saw a wide variety streamline processes through the
Innovation” and “Early-stage of submissions, from state- application of best practices to
Innovation” categories. The former of-the-art product designs eliminate waste.
was for projects that have added to advance rig equipment,
significantly to Keppel’s products, being recognised. Over in Brazil, BrasFELS held its
processes, service quality or annual INOVE competition, which
business models. The latter Two innovations in harsh challenges employees at all levels
comprised projects that are still environment designs stood out to come up with solutions that
in design, detailed engineering from the rest to clinch the Gold raise productivity and reduce costs
or prototyping stage. Awards. They are the SSDT™ while ensuring safety, quality and
01
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71
Sustaining Growth – Productivity and Quality
02
Eco-Consciousness
01 In China, Keppel
Nantong Shipyard
employees signed a
pledge in support of
environmental protection
in the lead-up to Earth
Hour on 28 March 2015.
02 Keppel FELS is
the first shipyard in
Singapore to use solar
panels to harvest solar
energy for consumption.
01
Keppel Offshore & Marine implemented in 2015. These using portable diesel generators
(Keppel O&M) ensures that include upgrading conventional to supply customised special
environmentally responsible lights at several yards to LED voltage level at its Singapore
practices are an integral part lights and motion lighting, installing yards. The step down
of our business. The Group is induction lights as dock yard transformers are able to achieve
committed to full compliance with lights for improved luminance an average annual carbon savings
all environmental rules, regulations, at lower energy consumption, of 257 tonnes based on diesel oil
and standards applicable to its collaborating with a vendor to saved. There were also cost savings
operations, as well as observing study the various types of flood from portable generator rentals,
environmentally conscious lights as well as upgrading the and a return on investment from
practices in its operations. gantry crane flood lights to one the new installations of only
that is much more efficient. 0.47 years.
Keppel O&M’s environmental
efforts are built upon the same Keppel Singmarine replaced Keppel FELS further explored
three pillars adopted by all its existing T8 lightings to LED renewable energy as a means to
entities within the Keppel Group: lightings for its offices in both its achieve energy efficiency. Working
- Create sustainable products 5 Benoi and 15 Benoi facilities with a vendor on a solar leasing
and services for its clients in Singapore, yielding energy programme, Keppel FELS became
- Improve operational efficiency savings of up to 40%, with an the first shipyard in Singapore to
and environmental footprint annual carbon avoidance of use solar panels to harvest energy
- Expand engagement with its 33 tonnes. In addition, Keppel and convert it into electricity for
stakeholders on environmental Singmarine also implemented consumption. The pilot installation
issues integrated motion sensors. This was completed in 2015 and the
initiative further reduced energy programme has thus far achieved
Energy Efficiency consumption by 85%. annual electricity savings of
With a strong emphasis on energy 91,397 kWh, with a carbon
efficiency, Keppel O&M’s yards Keppel Shipyard achieved reduction of approximately 27
are constantly looking for ways approximately $100,000 in annual tonnes. The positive outcome
to improve their energy savings. cost savings by installing two provides potential for the future
Several projects have been power transformers instead of expansion of the programme.
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73
Sustaining Growth – Eco-Consciousness
In line with the Keppel Group’s commitment supporting green initiatives wherever it
to reduce carbon emissions, Keppel O&M operates. Its efforts include educational
organised an inaugural Keppel O&M Energy projects seeking to protect or enhance
Saving Initiatives Workshop at the beginning of the environment.
2015. The workshop aims to provide a platform
for Keppel O&M to consolidate its energy- For example, Keppel O&M’s shipyard in the
saving ideas, and for all levels of management USA, Keppel AmFELS, held a “Go Green
and all teams to pledge their commitment to Campaign” and provided training for its
drive and cascade these ideas down the Group. employees, clients and contractors to
promote and enhance awareness on waste
Waste & Recycling management and spill prevention.
Keppel O&M implemented several on-going
recycling programmes throughout its yards Over in Brazil, employees at BrasFELS
in 2015. These include recycling of general conducted environment-related workshops
waste, paper, and scrap metal. Keppel O&M for public schools. On World Environment Day
will continue its efforts in recycling as part of in June 2015, BrasFELS employees shared
its sustainability efforts. with 200 students at the Cornelis Verolme
school on the importance of water as well as
Managing Impact how to prevent aedes aegypti mosquitoes
Keppel O&M aims to Keppel O&M is commited to continue improving
its carbon footprint and aims to achieve a 16%
from breeding. The shipyard also marked Tree
Planting Day in September 2015 with lectures
achieve a 16% improvement in its Greenhouse Gas (GHG) on the importance of trees to the environment
improvement in its emissions from the 2020 business-as-usual as well as workshops on planting sunflower
(BAU) level. seeds. A total of 185 students at the Xavier
Greenhouse Gas Botelho school in Lambicade benefited.
emissions from In addition, the Group will also continue to improve
its data collection to obtain the information Keppel O&M continued to support and
2020 business-as- needed to plan for and implement initiatives participate in global events such as Earth
usual level. to reduce its energy consumption, waste Hour. In 2015, various Keppel O&M business
production, and overall environmental impact. units in Singapore and overseas switched off
non-essential lights and electrical equipment
Stakeholder Engagement for an hour on 28 March from 2030hrs to
Keppel O&M engages its stakeholders in 2130hrs in support of the initiative.
02
74 Keppel Offshore & Marine Ltd Report to Stakeholders 2015 Sustaining Growth
Risk
Management
A dynamic risk
management system
enables us to harness
core strengths and
navigate through the
challenging business
environment while
preparing ourselves
to seize business
opportunities during
the upturn.
01
executed over an extended period changes in the operating Each business unit sets up specific
of time. A standardised risk environment, political and task forces to handle disruptive
assessment and monitoring regulatory developments, and events such as epidemic outbreaks,
process is implemented to help implement precautionary natural calamities, security threats,
manage key project risks measures to mitigate our exposure critical facilities damage, and loss of
throughout the project life cycle. in different scenarios. critical supporting infrastructure and
During the pre-contract stage, the key personnel.
project evaluation team, comprising Strengthening Risk Culture
members from different functions, We are committed to foster a robust In 2015, all the key Singapore yards
identifies and evaluates key risks risk-centric culture in the Group. and supporting business units
concerning areas such as the There is strong management participated in the Keppel O&M
market, customers, contract sponsorship and support for Pandemic Flu (MERS) Table Top
and technical challenges. risk management initiatives. Exercise with the Management team.
Mitigating actions are identified Risk management is integrated The Singapore yards also participated
to address these potential risks. into the day-to-day business in the International Ship and Port
With more rigorous scrutiny and operations to enable early risk Security (ISPS) table top exercise with
thoughtful consideration in detection and prompt formulation the relevant authorities (i.e. Singapore
the earlier stages, project risks of mitigating actions. To heighten Civil Defence Force, Singapore Police
are significantly reduced in the risk awareness and build risk Force) to enhance their preparedness
execution and completion phases. competencies, Keppel O&M in managing security incidents
This has been especially important emphasises continuous education involving unauthorised entry into the
in a low oil price environment to and communications with all yard and sabotage of yard facilities.
mitigate contractual default risks. business units.
Other BCM activities carried out by
At the execution stage, key risks In 2015, Keppel O&M’s ERM Team Singapore and overseas yards during
involving areas such as cost, conducted ERM training and risk the year include fire and evacuation
quality, schedule and health, assessment workshops across drills, haze preparation and
safety and environment (HSE) operating units in Singapore, contingency plans, preparation
are closely monitored through Azerbaijan, Brazil, Indonesia, for typhoons in the Philippines
key risk indicators to ensure that Middle East, Netherlands, USA and operations and testing of disaster
pre-emptive measures are taken the Philippines. Keppel O&M also recovery for critical IT application
and appropriately implemented. seeks to raise staff accountability systems and operating systems that
These systems were established and ownership of risk management support key business operations.
to ensure that projects are through the annual performance
completed on time, within budget evaluation process. Responding to Challenges
and safely, while achieving Keppel O&M’s ERM system and
the quality standards and Building Resilience processes are continuously cascaded
specifications as defined in the Business Continuity Management to overseas operating units and key
contracts with our customers. (BCM) is part of Keppel O&M’s functional departments to strengthen
ERM initiatives in addressing and the risk management processes at
Keppel O&M ERM reviews the managing potential threats, as Keppel O&M. While we do our best
emerging risks with the project well as in minimising the impact to minimise risks, we recognise
teams and highlights potential of a crisis on people, business that risks can never be entirely
issues in key projects to operations and assets. On a eliminated. A robust and effective risk
Management and ARC. Lessons half-yearly basis, the BCM management system will support
learnt in challenging projects are Steering Committee reviews the decision-making capabilities and
also shared and discussed across potential threats and status of enable us to respond efficiently to
the Keppel O&M business units. implementation of the BCM challenges amidst the current climate
For our overseas projects such as programme in its key Singapore of uncertainty in the offshore and
in Brazil, we constantly review and overseas business units. marine industry.
People
Development
In line with our Talent Development Framework
operating principle • Organisation Objectives
of tapping and •
•
Learning Objectives
Organisational Competencies
developing the best • Career Development Path
Keppel O&M develops the skills and capabilities of our workforce based on a structured and comprehensive talent
development framework.
At Keppel Offshore & Marine (Keppel O&M), sustainable human capital development
people are our most important resource. approach in grooming our employees,
We strive to create a conducive learning aiming to align their development with the
environment for our people so as to develop goals and objectives of the company.
them to become the next generation of leaders.
Through a comprehensive suite of initiatives Employees are nurtured through a
and programmes, we equip them with the comprehensive learning platform that
skills and knowledge to take the company extends beyond the conventional
to greater heights. classroom learning to include on-the-job
training, blended learning and customised
Despite the industry slowdown, Keppel O&M e-learning.
remains committed to providing learning
and developmental opportunities for our Our state-of-the-art Keppel O&M Group
employees. We continued our programme Training Centre is recognised as an
to identify in-house Subject Matter Experts Accredited Training Provider, Approved
(SMEs) and tap on their wealth of experience Training Organisation and Approved
to develop and conduct an extensive list Training Centre by the Singapore Ministry of
of customised courses for our employees. Manpower (MOM), Workforce Development
A total of 335 in-house courses were Authority (WDA) and Institute of Technical
conducted in 2015, of which 70 were newly Education (ITE) respectively. More than
developed last year. 150 SMEs are identified across the business
units of Keppel O&M based on their
In 2015, Keppel O&M invested approximately competencies to deliver in-house courses.
$13.2 million on the training and development
of our global workforce of about 30,000. This In 2015, Keppel O&M implemented the
has resulted in an average of 22.8 learning Structured Development Plan (SDP) across
hours per employee. all business units and departments within
the organisation. The SDP provides a
Training Framework learning roadmap for employees of all
Keppel O&M adopts a structured and levels within a competency matrix that is
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77
Empowering Lives – People Development
01
01 Participants of the
third run of the Diploma
(Conversion) in Marine
& Offshore Technology
course celebrating the
completion of their
training programme
with Keppel O&M
senior management.
78 Keppel Offshore & Marine Ltd Report to Stakeholders 2015 Empowering Lives
People
Development
01
workforce that is through yard visits to generate interest and Structured development schemes are
adaptable to a provide insights into the offshore and specially designed to provide targeted
marine industry. training for new hires of varying educational
constantly changing backgrounds from diploma holders to
environment. We work with universities, polytechnics university graduates.
and technical institutions to groom talents
by offering scholarships to well-rounded Our long-standing Management Traineeship
students with good academic records, proven (MT) scheme, accredited by the Institute of
leadership qualities and long-term career Marine Engineering, Science and Technology
ambitions in the industry. (IMarEST), is a two-year intensive development
programme that provides comprehensive
To enhance the skills and career development training for fresh graduates with either
of students in the offshore and marine Diploma or Degree qualifications. Designed
engineering sector, Keppel O&M signed a to expose them to the wide spectrum of our
Memorandum of Understanding (MOU) with businesses and operations, it comprises
ITE, Ngee Ann Polytechnic and Singapore classroom based learning, workshop skills
Polytechnic. With this MOU, students and training, cross-departmental attachments,
fresh graduates who are keen to join the on-the-job training, mentorship programmes
industry will be able to navigate their career and networking sessions with senior
paths through initiatives such as the management. Since its inception in 1986,
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79
Empowering Lives – People Development
Fostering Conducive
Learning
An empowered workforce
is essential to achieving
higher productivity and better
organisational performance.
Recognising this, Keppel has
designed a comprehensive
suite of programmes to enable
Keppelites to realise their
career goals and develop
their potential.
People
Development
01
An evolution of the virtual Keppel College tailored to meet the needs of Keppel O&M, 01 Keppel senior
management and
established in 2009, KLI organised a series of comprises four courses conducted over
participants of the
leadership programmes such as Influential a year, with coaching and review sessions Emerging Leaders
Leaders Workshop and Project Management done after each course to ensure the Programme celebrated
Workshop. During the year, KLI, in partnership optimal transfer of knowledge to their work. the inaugural run of the
programme at the newly
with the Centre for Creative Leadership, Since 2011, we have trained 72 managers established Keppel
developed the Emerging Leaders Programme under this programme. Leadership Institute.
which comprises a six-month blended learning
programme for selected local and overseas Keppel O&M also organised 12 Learn & 02 The Keppel O&M
Keppelites to exchange ideas, network and Lunch and KOMtech Knowledge Sharing Technology and
learn to become better leaders. sessions in 2015. Senior management of Engineering Development
Programme provides
Keppel O&M and established speakers an opportunity for
During the year, we continued to run the from the National University of Singapore Keppelites across Keppel
Leadership Excellence Programme which was and Det Norske Veritas Germanischer O&M’s global operations
to deepen their skills
launched in 2011 to hone the leadership and Lloyd (DNV GL) were invited to share their and collaborate with
management skills of our newly-promoted wealth of experience and knowledge one another.
managers. This programme, specifically with Keppelites.
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81
Empowering Lives – People Development
Championing Workplace
Wellness
Keppel O&M believes that a Fresh Initiative
healthy lifestyle is not only
beneficial for employees but
also contributes to the overall In 2015, Keppel O&M partnered with the
productivity of our business. Singapore University of Technology & Design
(SUTD) to develop the inaugural Keppel O&M
Our Workplace Health Technology and Engineering Development
Programmes (WHP) committee (KTED) programme.
organises various programmes
throughout the year to promote 49 Keppelites from Keppel O&M were nominated
the health and well-being of to attend the first run of the eight-month
our workforce. programme which is held in three phases from
November 2015 to August 2016.
In Singapore, our yards organised
regular health talks on topics Over the eight months, participants will get to
ranging from weight management learn from industry leaders, researchers and
to chronic diseases. Fruit bentos academics from renowned institutions such
were also distributed to as the Massachusetts Institute of Technology
employees on a regular basis to and University of Cambridge.
promote healthy eating habits.
The annual Active Day, a key Participants will also collaborate in multi-
health promotion event at disciplinary teams to innovate and transform
Keppel O&M, saw more than their ideas to value-added solutions for
3,000 Keppelites participating Keppel O&M.
in Bokwa, an energetic cardio
workout in 2015.
To encourage Keppelites to
maintain an active lifestyle,
Keppel Nantong Shipyard and
Keppel Nantong Heavy Industry
organised a series of adrenaline
pumping track and field events
which saw a participation of over
550 Keppelites and subcontractors.
82 Keppel Offshore & Marine Ltd Report to Stakeholders 2015 Empowering Lives
People
Development
01
Partnering Unions Secretary-General of NTUC and Our overseas business units 01 Senior management
and more than 3,000
Keppel O&M actively engages its Advisor to KFEU, Mr Chan spoke also remain committed to
Keppelites enjoyed a fun
unions to develop a productive with union leaders to better maintaining good industrial workout together during
partnership and a motivated understand their concerns and relations. 2015 saw the renewal the annual Keppel O&M
needs. They also met with Keppel of four Collective Agreements; Active Day.
workforce. To maintain good
relations with the unions, luncheons O&M’s senior management to Keppel FELS Brasil and Keppel
and dialogue sessions were learn more about Keppel O&M’s Subic renewed the Collective 02 Enjoying a hearty
organised regularly to discuss a partnership with the unions. Agreements with their unions chat over lunch,
Mr Chan Chun Sing (left)
wide range of topics concerning till 30 April 2016 and 30 July spoke with members
the welfare of employees, including For making significant 2017 respectively, while from KFEU.
living environment, quality of food contributions towards promoting Keppel Batangas renewed both
served in the yards’ canteens and good industrial relations and its Collective Agreements till
transportation. enhancing workers’ welfare, 15 May 2017 and 31 December
Mr Wong Kok Seng, Managing 2019 respectively.
In April 2015, Mr Chan Chun Sing, Director (Offshore) of Keppel O&M
Minister, Prime Minister’s Office and Keppel FELS, received a Integrating a Multinational
and then-Deputy Secretary- Medal of Commendation at the Workforce
General of the National Trades May Day Awards organised by At Keppel O&M, we look out
Union Congress (NTUC) visited the NTUC on 29 April 2015. for the well-being of our foreign
Keppel FELS to meet the executive workers. Other than providing
committee of Keppel FELS Mr Vincent Ho Mun Choong, highly subsidised dormitories
Employees Union (KFEU). President of KFEU, was also for our foreign workers, we
Accompanied by Mr Heng Chee conferred the Comrade of Labour continuously improve the
How, Senior Minister of State, Award for his active contributions amenities at five dedicated
Prime Minister’s Office, Deputy to the union. dormitories which include
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83
Empowering Lives – People Development
canteens, minimarts, barber shops and Our management, union leaders and human
wet markets. resources representatives also visit the various
dormitories regularly to receive feedback
In an effort to promote harmonious living from the workers in order to improve their
and bonding among foreign workers, various living conditions.
activities including sports competitions
Keppel O&M and bazaars are organised regularly at
the dormitories. To promote safety and
Optimising Workforce
The industry downturn is expected to be
actively engages its anti-gambling, road shows were also held prolonged with a significant slowdown in
unions to develop in 2015. In conjunction with Singapore’s orders. Accordingly, Keppel O&M has been
50th year of independence in 2015, optimising its operations by prudently allowing
a productive Keppel Housing collaborated with M1 to a natural attrition of the workforce. We have
partnership and organise an event called “Shades of Red”, reduced our direct staff strength and
where workers immersed in fun-filled subcontract workforce in Singapore and
a motivated activities and performances and enjoyed overseas in alignment with our operational
workforce. local snacks. requirements.
To help new foreign workers adapt to their We have also redeployed manpower to our
lives in Singapore and to constantly take operations overseas, as well as from offshore
care of their mental and emotional well-being, to marine operations, for example, Keppel
Keppel Housing provides counselling services Shipyard, where increased resources are
which include a 24-hour emergency helpline needed for the steady stream of repair and
that is manned by trained counsellors. conversion projects.
02
84 Keppel Offshore & Marine Ltd Report to Stakeholders 2015 Nurturing Communities
Community
Development
At Keppel Offshore
& Marine, we
believe that as our
communities thrive,
we thrive. We engage
and nurture the
communities where
we operate in to
achieve a sustainable
future together.
01
In line with our key thrusts of Sustaining senior management, Mr Aziz Amirali Hasham
Growth, Empowering Lives and Nurturing Merchant, ED, KOMtech and Dr Foo Kok Seng,
Communities, Keppel Offshore & Marine ED (Shallow Water Technology), KOMtech have
(Keppel O&M) is highly committed to also accepted NUS’ invitations to be appointed
contributing to the communities where we as Adjunct Professors in the NUS Civil and
operate in. In 2015, we contributed to a wide Environmental Engineering department, as
range of community development initiatives, part of their involvement in the research work
from knowledge building to disaster relief for the Keppel-NUS Corporate Laboratory.
support and environmental protection.
Keppel O&M also contributes to the growth
Scholarships Offered Promoting the Industry of the industry through the sponsorship
Keppel O&M supports and advances the of lectures, such as the Chua Chor Teck
Over offshore and marine industry and spurs Memorial Lecture. Organised annually since
410
collaborations between stakeholders through 1986 in remembrance of the late Mr Chua
our active involvement in knowledge-building Chor Teck, then-MD of Keppel Shipyard and
platforms and international conferences. one of the pioneers of Singapore’s marine
industry, the lecture has been a valued
scholarships offered to outstanding As a founding member of the National platform for industry leaders and experts to
students passionate about the University of Singapore’s (NUS) Centre for share their insights on a variety of offshore
offshore and marine industry. Offshore, Research and Engineering (CORE), and marine-related topics. At the lecture in
Keppel O&M has been actively promoting 2015, Dr Jerry Ng Kok Loon, CEO of Blue
Research & Development (R&D) collaboration Ocean Solutions, spoke on innovations in
within the industry. With a slew of research marine technology.
and educational outreach programmes,
Keppel O&M helps to strengthen Singapore’s Besides the Chua Chor Teck Memorial Lecture,
performance as an oil and gas hub by the Keppel Offshore & Marine lecture
advancing technologies and enlarging the organised under the auspices of the Keppel
talent pool in the industry. Professorship is another platform through
which Keppel O&M promotes interest in the
Since the launch of the Keppel-NUS study and research of offshore and marine
Corporate Laboratory in 2013, Keppel Offshore technology in order to enhance our push towards
& Marine Technology Centre (KOMtech) has developing our own proprietary technologies,
been undertaking research in deepwater and products and services. Dr Brian Clark, an
arctic technology to address future challenges expert in oil field technology, shared about
of the offshore industry. To grow the knowledge petroleum geology and the latest technologies
pool in the industry, two of Keppel O&M’s in drilling operations in the 2015 lecture.
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85
Nurturing Communities – Community Development
To document and share on the career development of students We also work closely with
growth of Singapore’s maritime in the offshore and marine educational institutions to provide
history, Keppel O&M supported engineering sector. With this, scholarships, academic awards
the production of a documentary current students and fresh and internship opportunities to
led by the Maritime and Port graduates of polytechnics and students with a passion for the
Authority of Singapore (MPA) ITE who are keen on joining the offshore and marine industry.
and Singapore Shipping industry will be better able to In 2015, Keppel O&M offered
Association (SSA) as the Gold navigate their career paths. The 413 scholarships to outstanding
sponsor. The documentary, titled initiatives include the SkillsFuture candidates, as well as 198
“Inside Maritime Singapore”, Earn and Learn Programme, a internship opportunities to
offers audiences a background work and study programme that students from both local and
on the growth and successes of offers career placements and overseas educational institutions.
Singapore’s maritime industry, on-the-job training. Additionally, yard tours and career
as well as a glimpse into the talks in schools are hosted on a
future of the industry. Keppel O&M is also in the process regular basis to raise awareness
of customising a Higher NITEC in of the industry.
Developing the Talent Pool Electronics Engineering course
Keppel O&M collaborates closely with ITE that concentrates on the To provide internship and
with local institutions to develop offshore and marine industry. employment opportunities to
structured programmes and students in China, Keppel Nantong
internships so that students Senior management from entered into an agreement with
will benefit from a better Keppel O&M also contribute to Nantong Shipping College and
understanding of the offshore the promotion of industry growth. Nantong Institute of Technology.
and marine industry. In June 2015, Mr Chow Yew Yuen, Prior to the agreement, Keppel
CEO of Keppel O&M was elected Nantong had also collaborated
In October 2015, Keppel O&M as the President of the Association with Nantong Shipping College
signed a Memorandum of of Singapore Marine Industries by engaging teachers from the
Understanding (MOU) with the (ASMI). As the Council’s President, college to provide off-site training
Institute of Technical Education Mr Chow will work towards forging at the shipyard. These programmes
(ITE), Ngee Ann Polytechnic (NP) closer ties between council aim to provide employees with
and Singapore Polytechnic (SP) in members for more collaborative opportunities for continuous
an effort to enhance the skills and work within the industry. training and upgrading.
02
01 During his visit to
BrasFELS, Singapore
Deputy Prime Minister &
Coordinating Minister
for National Security
Mr Teo Chee Hean
(centre) planted a
Pau-Brasil tree within
the shipyard’s grounds.
Community
Development
Engaging the Global Industry Pareto Securities Oil & Offshore Conference,
As a global industry leader, Keppel O&M is the largest oil and offshore investor conference
a regular participant at trade and industry in Europe.
conventions and exhibitions around the world.
01
Overview / Operations Review & Outlook / Technology & Innovation / Sustainability Report / Global Network / Corporate Structure
87
Nurturing Communities – Community Development
02
Abu Dhabi International Petroleum To help victims of a major home, volunteers from Caspian
Exhibition & Conference 2015 earthquake in Nepal in April 2015, Shipyard Company (CSC) in Baku,
held in the United Arab Emirates. Keppel O&M organised a charity Azerbaijian, contributed medical
drive that raised over S$35,000 for supplies and various amenities to
On top of our active participation the Red Cross Society’s Nepal the home. Volunteers from Keppel
in conferences and exhibitions, Earthquake Relief Fund. Nantong also visited an old folks
Keppel O&M also regularly hosts home, Nantong Tianshenggang
visits by foreign government Over in Brazil, volunteers Gerocomium, where they engaged
officials and industry and from BrasFELS worked with the the residents in various activities,
business delegates who are keen Association of Neighbourhood including gardening, dumpling
to learn about our yard structure Houses to organise a Christmas making and workout exercises.
and operations. celebration for over 800 children
from less privileged backgrounds As part of The Philippines’
Enriching Our Communities in Angra dos Reis. National Schools Maintenance
Keppel O&M actively seeks to Week, 60 volunteers from Keppel
give back and support the In 2015, BrasFELS also Subic Shipyard and 43 volunteers
different communities it operates implemented the Teach-It Forward from Keppel Batangas Shipyard
in through a variety of programme, an initiative which cleaned, painted, repaired and
programmes and projects. All encourages younger employees reconditioned the facilities of
employees are encouraged to to share their knowledge and various educational institutions,
initiate and participate in experience with the community. including elementary schools and
volunteer events The programme, which started high schools. Keppel Batangas
to make a tangible difference. in September 2015, saw over 30 Shipyard also donated 5,000
trainee engineers from BrasFELS Pesos to three public schools
Lending a Helping Hand conducting Portuguese and located near the shipyard.
From active volunteerism to Mathematics classes for Cornelis
charitable contributions, both Verolme public school. To raise funds for out-of-school
local and overseas business units youths volunteers from Keppel
from Keppel O&M regularly reach To meet the needs of elderly Batangas Shipyard participated in
out to different social groups residents in Mother Teresa - the annual Alay Lakad (Tagalog for
spanning a wide range of causes. Sister’s Monastery, an old folks ‘walk offering’) event.
88 Keppel Offshore & Marine Ltd Report to Stakeholders 2015 Nurturing Communities
Community
Development
01
Keppel Subic Shipyard also including Keppel Subic Shipyard of marine habitat preservation. 01 Volunteers from
Keppel Subic
donated supplies of scrap wood and Nakilat-Keppel Offshore & Keppel Batangas Shipyard also
Shipyard contributed
to Aeta Children’s Home, which Marine (N-KOM). actively supports the International to environment
was used to construct furniture. Coastal Clean-up, an annual preservation during
The home provides indigenous Contributing to Green Initiatives event aimed at educating the the coastal clean-up at
Barangay Calapandayan,
children with free education Committed to building a sustainable public on marine pollution and the Subic, Philippines.
and training of various skills, future, Keppel O&M is actively protection of aquatic resources.
such as sewing. involved in various environmental
02 Committed to giving
protection programmes and Through a petition, employees back to the community,
Over in Brownsville, Texas, USA, preservation efforts. from Keppel Nantong pledged AmFELS organised a
volunteers from Keppel AmFELS to protect the environment and charity golf tournament
that raised more than
delivered Christmas turkeys to a In support of Earth Hour, lights participated in the yard’s fourth US$50,000 for local
soup kitchen, the Good Neighbour at various Keppel O&M’s yards tree planting activity. Six peach charities and scholarship
Settlement House, which prepares and buildings were switched off trees and approximately 300 programmes.
and serves meals to around 200 for an hour on 28 March 2015. green hedges were planted in
low-income or homeless families. Educational materials, in the form various locations within the yard.
Together with Brownsville fire of posters and e-mails, were sent
department, the yard also to encourage Keppelites to adopt As part of the World Environment
organised a toy drive and collected eco-friendly practices, such as Day, an initiative by the United
presents for children from reducing energy consumption Nations Environment Programme,
low-income families. and practicing the “3Rs”- Reduce, a poster-making competition
Reuse and Recycle. with the theme “Our Yard,
As part of our efforts to help Our Home, Our Environment,
save lives, blood donation drives In April 2015, N-KOM organised Our Responsibility” and a tree
were also held across Keppel its fourth annual Beach Clean-up planting programme were
O&M’s local and overseas yards, Campaign to raise awareness launched at Keppel Batangas
Overview / Operations Review & Outlook / Technology & Innovation / Sustainability Report / Global Network / Corporate Structure
89
Nurturing Communities – Community Development
02
90 Keppel Offshore & Marine Ltd Report to Stakeholders 2015
Near Market,
Near Customer
Keppel Offshore & Marine’s network of
yards worldwide are strategically located to
meet the needs of our customers and bring
our suite of proprietary solutions into more
markets. By continuously strengthening our
capabilities, we have the agility to take on a
wider variety of projects as well as improve
efficiency and safety.
r
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Cr
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Ave
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Tu
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ard
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Keppel FELS added a Tua
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TUAS ng
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Singapore
Singapore is the
headquarters of
Keppel Offshore &
Marine which has
seven yards in
the country that
are located within
a 4km radius,
enabling the yards to
harness and share
resources easily.
01 Keppel FELS’
Pioneer Yard.
01
Near Market,
Near Customer
400
• Repair, upgrading and conversion of a such as anchor handling tug/supply
diverse range and capacity of vessels such vessels, platform supply vessels,
as LNG carriers, livestock carriers, drilling pipelay vessels, diving support
tenders, and derrick lay barges vessels, multipurpose construction
ships of diverse types and • Topside engineering, fabrication vessels, ice breakers & ice-class
sophisticated levels for and integration support vessels, cable laying vessels,
operations around the world. • Fabrication, installation and integration floating storage & offloading vessels,
of mooring solutions such as turrets and rockdumping fall pipe vessels, well
spread mooring systems stimulation vessels, as well as harbour
and terminal tugs
Key Equipment & Facilities
Key Equipment & Facilities
• Semi-automated pipeshop
• Newly constructed 20,000 tonne load-out • Automated pipeshop with robotic
quay in Benoi with new 250 tonne crane profile cutter and 6-axis robotic welding
• Automated panel line workshop
01
01 Keppel Shipyard’s
Benoi Yard.
02 Keppel Nantong
Shipyard and Keppel
Nantong Heavy Industry.
Overview / Operations Review & Outlook / Technology & Innovation / Sustainability Report / Global Network / Corporate Structure
93
Near Market, Near Customer
Asia
Our yards in China,
the Philippines and
Indonesia have
been configured
to take on more
complex projects
as well as support
our Singapore yards.
02
Near Market,
Near Customer
Capabilities
• Offshore structure/platform
fabrication
• Topside module fabrication
Overview / Operations Review & Outlook / Technology & Innovation / Sustainability Report / Global Network / Corporate Structure
95
Near Market, Near Customer
Americas
The Americas contains
some of the world’s
largest hydrocarbon
reserves and is
dominated by oil majors.
Keppel O&M’s yards
in USA (Brownsville,
Texas) and Brazil
(Rio de Janeiro and
Santa Catarina) are
strategically located to
serve one of the most
robust oil and gas
regions in the world.
02
USA Brazil
Keppel AmFELS Keppel FELS Keppel Singmarine Brasil
Strategically located at the Brasil/BrasFELS Located in Navegantes, Santa
gateway of the Gulf of Mexico, The most well-equipped yard in Catarina, Keppel Singmarine
Keppel AmFELS is the foremost Latin America, BrasFELS plays Brasil complements BrasFELS
offshore shipyard in the Gulf of a key role in helping to meet yard in offering a one-stop solution
Mexico, backed by a confluence Brazil’s energy aspirations. for customised vessels with
of strengths such as a sheltered local content.
waterfront area, a massive Capabilities
drydock and modern steel- Capabilities
processing plant. • Yard space of 522,230sm
• Construction, refurbishment, • Construction of specialised
Capabilities conversion, life extension and ships ranging from anchor
repair of a complete range of handling tug/supply vessels
• Yard space of 555,438sm mobile drilling rigs and to platform supply vessels, oil
• Construction, refurbishment, production platforms recovery support vessels and
conversion, life extension harbour tugs, among others
and repair of a complete range Key Equipment & • Fabrication of offshore modules
of mobile drilling rigs and Facilities
production platforms Key Equipment &
• Newly installed Goliath gantry Facilities
Key Equipment & crane with 2,000MT lifting
Facilities capacity has been supporting • 300m long waterfront area
the installation of megablocks • CNC plasma steel cutting
• Floating dry dock with a lift and modules facilities with a 128m panel
capacity of 37,000 LT • FS-1 floating dock (130m x 71m) line fabrication shop
• Manitowoc 21000 crane • Gantry crane with 660MT • Slipway with 120MT gantry crane
capable of lifting 1,000 short lifting capacity • 220m sheltered hull
tonnes and with a maximum • Assembly area with movable fabrication shop
reach of 640ft sheds • Pipe shop with CNC pipe
• Floating crane, Atlantic Giant, • 720m of berthing space bending machine
has a lifting capacity of 700 integrated with customs • Semi-auto recovery blasting
short tonnes. clearance facilities chamber
96 Keppel Offshore & Marine Ltd Report to Stakeholders 2015
Near Market,
Near Customer
Europe Netherlands
Keppel Verolme
of various vessel types and offshore units
• Support European offshore wind energy
Keppel Verolme operates a comprehensive sector with value-added services and
yard in Rotterdam, the Netherlands, which is in solutions
close proximity to the gas and oil fields of the
Netherlands, UK, and Norway, and has direct Key Equipment & Facilities
access to the North Sea.
• Three graving drydocks with the largest
Capabilities drydock measuring 405m x 90m, with
water depth of 11.6m
• Dry-docking, repair and maintenance, • 2,000m of quay side with a water depth
modification, conversion and construction of up to 12m
Middle East
The Gulf holds some
of the world’s largest
oil and gas reserves,
and is home to the
biggest offshore oil
and gas fields. It
provides one of the
best offshore
environments in the
world for oil and gas
production, offering
shallow, warm and
relatively calm waters.
02
01 Keppel Verolme in
The Netherlands.
Qatar • Electrical and instrumentation, steel, piping
Nakilat-Keppel O&M and mechanical and machinery workshops
Nakilat-Keppel O&M (N-KOM) is a 508,000sm as well as a 9,600sm warehouse
02 N-KOM yard in Qatar. world-class shipyard facility located at the • Cryogenic clean room
north-eastern tip of Qatar, next to the gas loading • Over 500,000sm of fabrication area
terminals in the Ras Laffan Port. In operation • Dedicated facility (200m floating jetty
since 2011, the shipyard has delivered more than & dry berth) for small vessel repairs
500 marine and offshore projects. It is the leading • 300MT and 1,100MT mobile boat hoists
provider of repairs and maintenance for gas
carriers in the region, having completed more
than 100 LNG carrier repairs. Emirate of Ajman
Arab Heavy Industries
Capabilities Strategically located along the coast of the
Emirate of Ajman, about 30 km from Dubai, Arab
• Ship repair and conversion Heavy Industries (AHI) has built a reputation for
• Construction and maintenance of being the preferred solutions partner for fleet
offshore structures (jackup rigs, liftboats, owners and operators in the Arabian Gulf.
jackets & piles, etc.)
• Provider of green shipping & gas-related Capabilities
marine solutions (e.g. BWTS installations,
ME-GI conversion, etc.) • Ship repair and conversion, shipbuilding,
• Leading provider of repairs and as well as offshore structures repairs
maintenance for gas carriers and modifications
• Newbuilding of tugboats, supply vessels,
Key Equipment & Facilities barges, landing craft, coastal freighters,
jetties and pontoons
• Two VLCC-sized graving docks
(400m x 80m and 360m x 66m), Key Equipment & Facilities
• Q-max floating dock (405m x 66m)
• Eight quays and piers with a total berthage • Yard area of 270,000sm
capacity of 3km and a 150m loading quay • 9,000sm covered workshop
• 75,000sm open fabrication area
98 Keppel Offshore & Marine Ltd Report to Stakeholders 2015
Yards &
Offices
Harnessing the
synergy of 20 yards
worldwide keeps us
Near Market,
Near Customer.
United States
Headquarters
Offshore & Marine
Engineering/R&D Centre
Representative Offices
Marine Services
Headquarters
Singapore
• Keppel Offshore & Marine Ltd Qatar
(Headquarters) • Nakilat-Keppel Offshore & Marine Ltd
Global leader in offshore & marine Comprehensive service provider of
marine and offshore solutions
Offshore & Marine Brazil
Azerbaijan Singapore
• Caspian Shipyard Company, LLC • Keppel FELS Ltd
Builder & repairer of rigs & ships World leader in design & construction
• Baku Shipyard LLC of mobile offshore structures
Builder & repairer of offshore • Keppel Shipyard Ltd
support vessels and tankers Leader in the repair & conversion
of all kinds of vessels
Brazil • Keppel Singmarine Pte Ltd
• Keppel FELS Brasil S.A./BrasFELS Leading builder of offshore
Most established offshore yard support vessels & tugboats
in the Latin American region
• Keppel Singmarine Brasil Ltda The Netherlands
Builder of offshore support • Keppel Verolme BV
vessels & tugboats The most established offshore USA
& marine yard in Europe • Keppel Offshore & Marine USA, Inc
China Solutions provider for offshore structures
• Keppel Nantong Shipyard Co. Ltd The Philippines • Keppel AmFELS, LLC
Builder of offshore support vessels, • Keppel Philippines Marine, Inc Best-equipped offshore yard in the
tugboats, ice-class vessels • Keppel Batangas Shipyard, Inc Gulf of Mexico
and LNG carriers Repairer & builder of small to
• Keppel Nantong Heavy Industry Co. Ltd medium-sized vessels & offshore Engineering/R&D Centre
Offshore construction facility fabrication facility ulgaria
B
• Keppel Subic Shipyard, Inc • Keppel FELS Baltech Ltd
Indonesia Provider of ship repair,
• PT Bintan Offshore conversion, offshore fabrication China
Offshore fabrication facility & construction solutions • Keppel FELS Engineering Shenzhen Co. Ltd
• Keppel FELS Engineering Wuhan Co. Ltd
Japan United Arab Emirates
• Regency Steel Japan Ltd • Arab Heavy Industries PR.J.S.C. India
Manufacturer of large, high-quality Repairer & builder of small to • Keppel Offshore and Marine Engineering
steel structures medium-sized vessels Services Mumbai Pte Ltd
Overview / Operations Review & Outlook / Technology & Innovation / Sustainability Report / Global Network / Corporate Structure
99
Yards & Offices
The Netherlands
Bulgaria
Azerbaijan
China Japan
United Arab
Qatar Emirates
India Vietnam
Indonesia
Australia
Yard Equipment
and Facilities
Berthage Outfit quay
Dock capacity
Total land area Capacity (dead Size Length Draft Building berth Length Depth
(square metres) Type weight tonnes) (metres) (metres) (metres) (capacity) (metres) (metres)
Singapore
Keppel FELS Ltd (Pioneer) 284,292.3
Admiral Dock Drydock 400,000 380 x 80 380 13
FELS CAN-DO Semisubmersible 30,000 lifting 138 x 78
Barge
Berth space 1,400 8 – 11
Pioneer Yard II 139,073 Berth space 350 4.5 – 6
Shipyard Road 88,289 Berth space 500 4.5
Crescent Yard 98,919 Berth space 740 7
Tuas South Yard 131,289 Outfit Quay 300 4–5
Keppel Shipyard Ltd (Tuas) 443,423 2,507
Tuas Dock Drydock 360,000 350 x 66 6.6
Raffles Dock Drydock 400,000 400 x 64 6.6
Temasek Dock Drydock 150,000 301 x 52 7.4
Temasek Pier East Berth space 280 7.2
Finger Pier West Berth space 350 9
Finger Pier East Berth space 370 8.5
Raffles Pier West Berth space 430 8.5
Raffles Pier East Berth space 230 6.1
West Quay Berth space 450 7.1
South Quay Berth space 177 8
Raffles Dock Entrance Berth space 220 7.1
Keppel Shipyard Ltd (Benoi) 350,000 1,737
Drydock No. 1 Drydock 300,000 350 x 60 5.5
Drydock No. 2 Drydock 170,000 300 x 60 5.5
No.1 Quay Berth space 217 11
No.2 Quay Berth space 220 8
No.2 Quay/Extension Berth space 340 12
No.3 Quay Berth space 280 8
No.4 Quay Berth space 224 7
No.5 Quay Berth space 156 7
Dock 1 Entrance Berth space 200 8
Landing Quay Berth space 100 5
Building Berth Slipway 230 x 70
Keppel Shipyard Ltd (Gul) 140,000 530
FD No. 1 Floating Dock 14,000 lifting 190 x 32
FD No. 2 Floating Dock 5,000 lifting 114 x 27
FD No. 3 Floating Dock 12,000 lifting 170 x 27
North Quay 1 Berth space 177 6.5
North Quay 2 Berth space 193 6.6
North Quay 3 Berth space 160 6.6
Keppel Singmarine Pte Ltd 149,924
Drydock in Benoi 5 Drydock 5,000 105 x 18.5 8.2
Building Berth in Benoi 15 Slipway 225 x 38.5(min) –
72.5(max)
Building Berth in Benoi 5 Slipway 120 x 27.5
Wharf in Benoi 5 Wharf 60 5
Quay 5 in Benoi 15 Berth space 156 7
Azerbaijan
Baku Shipyard LLC 720,000
28 May Floating Dock Floating dock 25,000 lifting 168 x 50 7.5
Repair Slab on Shore Berth space 18,000 for 250 x 140 7.5
on Land transfer mode
East Quay Berth space 250 7.5
West Quay Berth space 130 7.5
Finger Pier Berth space 300 7.5
Caspian Shipyard Company Ltd 60,000
Yusif Ibrahimov (Hull 901) Floating Dock 15,000 128 x 74.5 6.5
Floating Dock (Hull 953) Floating Dock 5,000 128 x 21.7 6.5
Floating Dock (Hull 806) Floating Dock 4,500 102 x 20 6.5
Jetty 3 280 6.5
Jetty 4 100 4.5
Brazil
Keppel FELS Brasil S.A. 522,230
(BrasFELS Yard)
Drydock Graving Dock 125 x 70
FS1 Floating Dock Floating Dock 22,000 120 x 57 10
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 Outfit Quay 360 12
Finger Pier West Outfit Quay 360 11.5
Overview / Operations Review & Outlook / Technology & Innovation / Sustainability Report / Global Network / Corporate Structure
101
Yard Equipment and Facilities
Brazil (cont’d)
Outfit Pier East Outfit Quay 300 6–7
Outfit Pier West Berth space 120 7–8
Slipway 2 Pier Berth space 160 8–9
Slipway 3 Pier 1 Outfit Quay 160 8–9
Slipway 3 Pier 2 Outfit Quay 160 8–9
Keppel Singmarine Brasil Ltda 76,000
Slipway No. 1 Slipway 130 x 28
Quay No. 1 Berth space 300 6
China
Keppel Nantong Shipyard Co. Ltd 190,000
Slipway No. 1 Slipway 3,000 90 x 33
Wharf No. 1 Wharf 80 7
Keppel Nantong Heavy 235,900
Industry Co. Ltd
Slipway No. 2 Slipway 24,000 140 x 84
Wharf No. 2 Wharf 80 7
The Philippines
Keppel Subic Shipyard, Inc 666,933
Pacific Dock Graving Dock 550,000 550 x 65
C Quay 279
E1 Quay 351 8.5
E2 Quay 312 8
Keppel Batangas Shipyard, Inc 353,000
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 68 x 2 6
Pier No. K2 83 x 2 6
Pier Block No. 1 183 8
Pier Block No. 2 160 8
Pier Block No. 3 70 8
Pier Block No. 4 155 8
The Netherlands
Keppel Verolme BV 554,000 Berth Space 1,600 9 – 12 400 9 – 12
Dock No. 5 Graving Dock 65,000 230 x 35.5 8
Dock No. 6 Graving Dock 130,000 275 x 41 10.30
Dock No. 7 Graving Dock 500,000 405 x 90 11.60
Qatar
Nakilat-Keppel Offshore 508,000
& Marine Ltd
Dry Dock No. 1 Drydock 350,000 360 x 66 360 11
Dry Dock No. 2 Drydock 450,000 400 x 80 400 12
Floating Dock 120,000t 405 x 66
lifting capacity
1 Quay 400 11
1 Quay 400 11
Loading Quay 150 11
1 Pier 400 11
1 Pier 400 11
1 Pier 400 11
1 Pier 400 11
1 Floating Pier 200 11
1 Quay 400 11
United Arab Emirates
Arab Heavy Industries PR.J.S.C. 273,000
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 7
East Wharf Wharf 200 5
West Wharf Wharf 83 5
USA
Keppel AmFELS, LLC 555,438
Floating Drydock Floating Drydock 37,594 94 x 111 10
Launching Way 380 9.14
West Dock Quay 153 9.14 153 9.14
East Dock Quay 297 10.67 297 10.67
* Light Displacement Tonnage
102 Keppel Offshore & Marine Ltd Report to Stakeholders 2015
Contacts
Singapore Keppel Offshore & Marine Technology Keppel Smit Towage Pte Ltd
Keppel Offshore & Marine Ltd Centre (KOMtech) Pte Ltd 23 Gul Road
(Head Office) 31 Shipyard Road Singapore 629356
50 Gul Road Singapore 628130 Tel: +65 6668 4222
Singapore 629351 Tel: +65 6591 5450 Fax: +65 6897 8056
Tel: +65 6863 7200 Fax: +65 6265 9513
Fax: +65 6261 7719 Contact Persons:
www.keppelom.com Contact Persons: Pieter Van Stein, Managing Director
Michael Chia Hock Chye, Managing Director Jerry Wong Yoke Min, General Manager
Keppel FELS Ltd Aziz Amirali Hasham Merchant, Email: kst@keppelsmit.com.sg
(Pioneer Yard 1 – Head Office) Executive Director
50 Gul Road Dr Foo Kok Seng, Executive Director Australia
Singapore 629351 (Shallow Water Technology) Keppel Prince Engineering Pty Ltd
Email: KOMtech@keppelom.com Level 2 Riverside Quays, 1 Southbank Boulevard
(Pioneer Yard 2) Southbank, Victoria 3006, Australia
55 Gul Road Offshore Technology Development Pte Ltd Tel: +613 9982 4589, +614 1999 0788
Singapore 629353 55 Gul Road Fax: +613 9551 0624
Singapore 629353
(Shipyard Road) Tel: +65 6863 7409 Contact Person:
31 Shipyard Road Fax: +65 6862 3465 Charles Chiam Toon Thong, Director
Singapore 628130 Email: cchiam@ozemail.com.au
Contact Person:
(Crescent Yard) Dr Foo Kok Seng, Executive Director Azerbaijan
60 Shipyard Crescent Email: enquiry@keppelotd.com Caspian Shipyard Company, LLC
Singapore 627735 South Bay, KMNF Basin
Deepwater Technology Group Pte Ltd Baku AZ1023, Azerbaijan
Tel: +65 6863 7200 31 Shipyard Road Tel: +994 12 449 9930
Fax: +65 6261 7719 Singapore 628130 Fax: +994 12 449 9931
www.keppelfels.com Tel: +65 6863 7163
Fax: +65 6863 1739 Contact Person:
Contact Persons: Lau Kuat Pin, CEO
Wong Kok Seng, Managing Director Contact Persons: Email: csc@csc.az
Chris Ong Leng Yeow, Aziz Amirali Hasham Merchant,
Deputy Managing Director Executive Director Baku Shipyard LLC
Keith Teo Tiong Gee, Email: aziz.merchant@keppelfels.com Garadagh District, Salyan Highway 25th km
General Manager (Marketing) Baku AZ 1083, Azerbaijan
Email: marketing@keppelfels.com Marine Technology Development Pte Ltd Tel: +994 12 446 4944,
31 Shipyard Road +994 12 446 4945,
Keppel Shipyard Ltd Singapore 628130 +994 12 446 4946
(Tuas Yard – Head Office) Tel: +65 6863 8344 Fax: +994 12 446 4947
51 Pioneer Sector 1 Fax: +65 6261 7718
Singapore 628437 Contact Persons:
Tel: +65 6861 4141 Contact Persons: Lam Khee Chong, General Manager
Fax: +65 6861 7767 Aziz Amirali Hasham Merchant, Yu Cheng Hee, Senior Marketing Manager
Executive Director Email: marketing@bakushipyard.com
(Benoi Yard) Email: aziz.merchant@keppelfels. com
15 Benoi Road Anis Altaf Hussain, General Manager Brazil
Singapore 629888 Email: anis.hussain@keppelfels.com Keppel FELS Brasil S.A.
Tel: +65 6861 6622 Dr Nigel Koh Leong, Senior Design Manager Rua da Quitanda nº 86,
Fax: +65 6861 4393 Email: Nigel.Koh@mtdpl.com Sala 301, 3º Andar,
CEP - 20091 - 005,
(Gul Yard) Gas Technology Development Pte Ltd Rio de Janeiro, RJ, Brasil
55 Gul Road 51 Pioneer Sector 1 Tel: +55 21 2102 9400
Singapore 629353 Singapore 628437 Fax: +55 21 2102 9425
Tel: +65 6861 3007 Tel: +65 6558 7620
Fax: +65 6862 3645/7 Fax: +65 6558 7621 Contact Person: Kwok Kai Choong, President & CEO
www.keppelshipyard.com Email: enquiry@keppelgtd.com Email: kaichoong.kwok@keppelfels.com
Corporate
Structure
Keppel Offshore & Marine Limited
SINGAPORE Malaysia
Maju Maritime Pte Ltd Kejora Resources Sdn. Bhd
UAE UAE
Arab Heavy Industries Arab Eagle Marine Engineering
PR.J.S.C. LLC
SINGAPORE
Alpine Engineering Services
Pte Ltd
PHILIPPINES Philippines
Keppel Philippines Keppel Batangas Shipyard, Inc
Marine, Inc
SINGAPORE Philippines
Marine Technology Keppel Subic Shipyard, Inc
Development Pte Ltd
CHINA
Keppel Nantong Shipyard
Co. Ltd
CHINA
Keppel Nantong Heavy
Industry Co. Ltd
QATAR
Nakilat-Keppel Offshore
& Marine Ltd
SINGAPORE
Dyna-Mac Holdings Ltd
SINGAPORE
Blue Ocean Solutions Pte Ltd
Keppel Offshore & Marine Ltd
Harnessing Strengths
Report to Stakeholders 2015