Keppel Offshore & Marine Limited's subsidiaries in the Philippines and Singapore have clinched contracts worth about SGD 50 million for the construction and upgrading of vessels.

Its yards in Subic and Batangas are each constructing a transshipment barge for PT Mitra Bahtera Segarasejati and PT Pelayaran Kartika Samudra Adijaya respectively. Both vessels are targeted for completion by end 2010.

Meanwhile in Singapore, Keppel Singmarine Limited has also clinched a contract from PT Indo Straits to build a similar transshipment barge that is scheduled for delivery in the first quarter of 2011.

All three barges will be deployed in Indonesian waters to load and discharge coal between vessels during open sea transshipping operations.

In addition to the above contracts, Subic Shipyard has also been awarded a drill ship upgrading job by Frontier Drilling.

Keppel O&M, a subsidiary of Keppel Corporation Limited, is a leader in offshore rigs, ship repair and conversion and specialized shipbuilding. Keppel O&M’s near market, near customer strategy is bolstered by a global network of 20 yards and offices in the Asia Pacific, Gulf of Mexico, Brazil, the Caspian Sea, Middle East and the North Sea regions. Integrating the experience and expertise of its yards worldwide, the group aims to be the provider of choice and partner for solutions for the offshore and marine industry.

The contracts above are not expected to have material impact on the net tangible assets and earnings per share of Keppel Corporation for the financial year ending 2010.