Keppelite. Entertainment capital at Caesars Singapore. eppel. Keppel Group Newsletter. First WTE plant. in Jiangyin 6.

Transcription

1 MARCH 2006 eppel Keppel Group Newsletter Keppelite First WTE plant in Jiangyin 6 Keppel wins more jackup orders 8 Alpha exceeds fund target 36 Entertainment capital at Caesars Singapore MITA(P) NO.059/11/2004 March /31/06, 3:32 PM

2 Contents BUSINESS Keppel shines at Singapore Corporate Awards 4 GlobalSantaFe orders ultra-deepwater drilling rig 5 First waste-to-energy plant in Jiangyin 6 Keppel yards pool resources to offer fast track 7 upgrading Keppel wins more jackup orders 8 Keppel Land despatches documents on 10 K-REIT Asia to shareholders More FPSO contracts for Keppel Shipyard 11 The next lap for P Strengthening ties with Qatar 13 The Libeskind signature at Keppel Bay 14 Bourbon AHTS delivered Indonesia s best golf course in Ria Bintan 15 Four in a row Friendship that spans 20 years 16 Delivering global solutions 17 Keppel FELS Brasil achieves double certification Keeping a promise sound 22 Keppel Land joins Singapore Compact 24 Thai Chee Ken steps down Visitors from Norway 25 China yard gears up for more work Focus on human capital 26 Going the extra mile with Singapore Petroleum Excellence award for Keppel FELS 27 Another successful repair for ENSCO COVER STORY Entertainment capital at Caesars Singapore 18 to draw tourists TEAM Staging class acts 28 A helping hand to the Clippers 29 KRC in efforts to promote health 30 Ultimate rigs Appreciating long-serving staff 31 Committed to the local community Welcoming new Keppelites 32 Kepture! for the Arts Keppel O&M holds inaugural corporate orientation 33 Tackling the bird flu PEOPLE Keppelites Abroad What s brewing in Belgium? 34 COMMUNITY Keppel Volunteers Equipping volunteers to make the difference 35 BACK PAGE Alpha raises $720 million exceeding fund target 36 eppel Published for people in the Keppel Group by the Group Corporate Communications Division, Keppel Corporation Limited, 1 HarbourFront Ave, #18-01 Keppel Bay Tower, Singapore Printed by Image Printers Pte Ltd, Blk 1002, Redhill Industrial Estate, Jalan Bukit Merah, #03-12, Singapore Editorial Advisor Wang Look Fung Editor Teo Chang Ching Editorial Committee Andrea Lee, Ang Lai Lee, Clara Ko, Diana Chan, Fatima Lay, Felicia Lee, Grace Chia, Hong Tin Wei, Ivana Chua, Karin Lam, Kelvin Ng, Lee Yin Chiin, Low Hooi Hoon, Lynette Goh, Mohd Nor Nordin, Nicole Tan, Phang Weng Onn, Romell Song, Sarah Seah, Serena Toh, Teri Liew, Woon Pek Yong, Wong Mei Lin, Yang Sook Chin CO REG NO: N

3 Editorial Orchestrating excellence Music prodigy Lidia Baich s outstanding performance at the Keppel-sponsored Singapore Symphony Orchestra concert this month, was a marvel for many. Trained by her concertmaster grandfather at the age of four, and now protégé to world-renowned Maestro Lorin Maazel, Lidia s music career and prospects have been closely guided by master mentors, and look set to scale greater heights. For me, it was indeed a glittering display of talent, but more than that I was inspired by the talent cultivation. At Keppel, we too believe in mentorship, harnessing talent and breeding leaders in their fields of expertise. With a global footprint spanning 30 countries now, we need to be able to deploy good people and tap their diverse strengths, skills and expertise to sharpen Keppel s competitive edge in markets where we operate. Talent management and succession planning ensure we groom and retain the best individuals to step up to greater roles and responsibilities, and fulfill key leadership positions and functions. As such, we are tenacious in our efforts to strengthen the quality of our human resource base across the Group. Setting the stage for the pursuit of excellence, through our vast platter of Group-led initiatives, is not the entire deal. Commitment and creative energies flow in both directions between management and staff, creating a hive of ideas that yields synergistic benefits for the entire organisation. That is the true artistry of Keppel s approach towards cultivating talent senior management proactively provides effective platforms for individual self-discovery. As our people explore, discover and realise their true potentials, they come to embrace the key values of progress, dedication and passion espoused by the Company. This is our way in Keppel we help our people bring out their very best. With tireless drive, creativity and pursuit towards lifelong learning, every Keppelite contributes in his or her own capacity to powering up our engine. Indeed, our people, from senior management to employees on the ground, are the very lifeblood of our business. Our best talents grow to become good leaders; and great leadership will steer Keppel towards achieving our business objectives that of driving growth, increasing value as we pursue excellence in all our conduct. Being a conglomerate fortunately means that opportunities for talent nurturance and exposure are aplenty in the Group, through job rotations, internships and overseas postings. Our businesses provide many platforms for excellence but it truly has to begin with the very individual.

4 4 Business Keppel shines at Singapore Corporate Awards At the inaugural Singapore Corporate Awards (SCA) presentation ceremony held at the Raffles City Convention Centre on 7 March 2006, Keppel Land and Keppel Corporation emerged the Gold winner of the Best Annual Report Award (ARA), and the Silver winner of the Best Investor Relations Award (IRA) respectively, in the category of listed firms with a market capitalisation of $500 million or more. The ARA recognises companies which have demonstrated excellence in financial reporting presentation and a wider scope of disclosures beyond the minimum level of regulatory requirements; while the IRA honours companies who have showed quality disclosure, corporate transparency and fairness in disclosure. It s teamwork for Keppel Land s award-winning annual report Having been named the Best Annual Report 15 times in the last 30 years of the former Annual Report Award competition, and bagged the Grand Award eight times, an award which is presented to the company whose annual report wins the best award for three consecutive years, Keppel Land continues to place great emphasis on upholding corporate integrity and accountability to stakeholders. For us, it is not just about winning awards and accolades. Keppel Land has always placed emphasis on corporate disclosure and transparency. The annual report is an important communication tool we use to share strategic thrusts and plans for further growth with investors, customers, employees and other stakeholders. Keppel Land bags Best Annual Report Award at the inaugural Singapore Corporate Awards It is also a stewardship report, and a document of record of our company s achievements and activities, said Mr Choo Chin Teck, Keppel Land s Director of Corporate Services, who received the award on behalf of the Company from Mr J Y Pillay, Chairman of the Singapore Exchange. There is of course, a lot of hard work done behind the scenes. Bringing it together are the investor relations and group corporate communications teams who package the information to ensure consistency of message, tone and positioning, going through round after arduous rounds of checking, vetting and rewriting, to piece together a winning annual report. The SCA honours the commitment of listed companies and individuals to the highest levels of corporate governance and disclosure standards, and is organised by The Business Times in collaboration with UBS and supported by the Singapore Exchange. Apart from ARA and IRA, the organisers also confer the Best Managed Board Awards, as well as the Chief Financial Officer of the Year Award. keppelite

5 Business 5 GlobalSantaFe orders ultra-deepwater drilling rig Keppel FELS has secured a contract with GlobalSantaFe Corporation (GSF) to build an ultra-deepwater drilling rig for US$270 million. Under the contract agreement, GSF will supply the drilling and sub-sea equipment while Keppel FELS provides the design, engineering and construction of the hull as well as the accommodation quarters for 180 men and marine equipment. The rig, to be named the GSF Development Driller III, is scheduled for delivery in the first quarter of GSF has chosen to build the state-of-the-art semisubmersible (semi) to the proprietary design, DSS- 51, jointly designed and developed by Keppel s Deepwater Technology Group (DTG) and Marine Structure Consultants (MSC). Mr Choo Chiau Beng, Chairman and CEO of Keppel Offshore & Marine, the parent company of Keppel FELS, said, GSF and Keppel share a longstanding relationship which dates back to To date, Keppel FELS and GSF have co-operated and completed six new generation jackups that are still performing extremely well in the North Sea, Eastern Canada and South America. I am happy that we are now working on our first semi newbuild project together, and I am confident that the highly efficient DSS-51 rig will meet GSF s charter commitment on time and within budget. Commenting on the demand for deepwater mobile drilling rigs, Mr Choo said, The fundamentals for deepwater exploration and production are strong with consensus amongst operators, drillers and service providers that the market for exploration and production of hydrocarbons will be sustained over the next few years. According to ODS- Petrodata s 12-monthly rolling forecast between February 2006 and January 2007, the demand for semisubmersibles is expected to rise from 141 to 167 units while the marketed supply remains inelastic from 152 to 153. Even as utilisation levels approach full capacity, global demand for the mobile offshore drilling units shows no sign of slowing down. Said Mr Jon A. Marshall, President & CEO of GSF, We are looking forward to Keppel FELS will build for GlobalSantaFe an ultra-deepwater semisubmersible rig designed by Keppel s Deepwater Technology Group (DTG) and the Marine Structure Consultants (MSC). This DSS-51 is an enhancement of the successful DSS-20 rig, Maersk Explorer (above), built by Keppel FELS working again with Keppel FELS on our newbuild semi. Keppel FELS has a track record of well designed and built rigs that have been delivered on schedule. In the last few years, GSF has sent a number of rigs to Keppel for repair and upgrading. They have been very responsive and professional. I am certain that the new semi will be a great addition to our fleet. The DSS-51 rig is maintenance-friendly with excellent safety features well suited for both exploration and development drilling as well as workover operations. With a dynamically positioned system (DPS 2), it can drill wells down to 10,000 m (30,000 ft) and operate in water depths of up to 3,048 m (10,000 ft) in environments such as offshore Brazil, the Gulf of Mexico, West Africa and South East Asia. keppelite

6 6 Business First waste-to-energy plant in Jiangyin Keppel Seghers will provide technologies and services for the first waste-to-energy plant to be built in the city of Jiangyin, Jiangsu province, China Keppel Seghers, the environmental technology division of Keppel Integrated Engineering (KIE), has secured a S$13 million contract to provide technologies and services for the first waste-to-energy plant to be built in the city of Jiangyin, Jiangsu province, China. When completed in end 2007, the waste-to-energy plant will be able to treat 800 tonnes of municipal waste a day. Keppel Seghers will provide its proprietary equipment design and technical services for the furnace, boiler and flue gas cleaning components of the plant. These state-of-the-art equipment and technologies will enable the plant to enjoy longer continuous operation, high waste throughput, and high steam production for power generation. Mr Chua Chee Wui, Acting Chief Executive Officer of KIE, says This repeat order from China Everbright affirms the strength and reliability of Keppel Seghers proprietary technologies. It is a vote of confidence from our valued customer that we deliver cost-effective and robust environmental solutions to meet the needs of our partners and customers. Keppel Seghers and China Everbright first collaborated in 2004 when Keppel Seghers provided basic and detailed engineering for the Suzhou SuNeng Waste Incineration Power Plant. Keppel Seghers is currently the market leader for imported waste-to-energy solutions in China, with 60% of the market. As the demand for waste-toenergy incineration services grows in China due to the burgeoning population and heightened awareness of the need to protect the environment for sustained economic growth, Keppel Seghers is well positioned to provide its expertise in EPC services, technology package, equipment supply and other related waste-toenergy services to major cities in the country. Currently, Keppel Seghers is also undertaking waste-toenergy projects in Changshu, Shenzhen and Guangzhou. Globally, Keppel Seghers has an established track record of involvement in thermal and waste-to-energy projects in Europe, USA and the Asia Pacific for more than 40 years. Locally, Keppel Seghers recently signed a 25-year Design-Build-Own- Operate contract with the National Environment Agency (NEA) for Singapore s first incineration plant to be built under the Public-Private Partnership (PPP) initiative. keppelite

7 Business 7 Keppel yards pool resources to offer fast track upgrading Keppel FELS has secured a US$177 million contract for the upgrading of a semisubmersible (semi) drilling rig Blackford Dolphin for Blackford Dolphin Pte Ltd, a wholly-owned subsidiary of Fred Olsen Energy ASA. Blackford Dolphin, the former Ocean Liberator built in 1974, will undergo fasttrack refurbishment and have her life span extended for 20 years. When completed, the upgraded drilling unit will have drilling depth capabilities increased from 600ft to 7,000ft water depth, enabling her to operate in deepwater environments worldwide. leverage resources from sister yards to carry out the job simultaneously. In doing so, we are able to satisfy our customers needs in a faster and more cost-efficient manner. Both Keppel Shipyard and Keppel Verolme will be responsible for the fabrication of the lower and upper hull structures and modules. Keppel Verolme will also undertake the overall integration of the structure and modules as well as carry out the repairs and maintenance works on the semi. The rig is expected to arrive at Keppel Verolme by end March Commenting on the strategy, Mr Tong said, By integrating the expertise and experience of our yards, we make the best use of our available resources to provide maximum value to our customers. Said Mr Helge Haakonsen, Chief Executive Officer of Fred Olsen Energy ASA, By choosing a yard with a proven track record for delivering major drilling rig conversions on time and within budget, Fred Olsen Energy aims to ensure availability of the upgraded rig to the market during third quarter keppelite To meet the quick turnaround delivery by end June 2007, the project will be undertaken jointly by Keppel FELS and Keppel Shipyard in Singapore and Keppel Verolme in the Netherlands. Said Mr Tong Chong Heong, Managing Director/Chief Operating Officer of Keppel Offshore & Marine (Keppel O&M), This is a fast-track upgrading project and Keppel FELS is glad to partner Fred Olsen in offering innovative field development solutions. To meet the tight delivery schedule, Keppel FELS will Blackford Dolphin is of the same design, Aker H-3, as Stena Clyde (shown) which was recently refurbished by Keppel FELS. Together with Keppel Shipyard and Keppel Verolme, Keppel FELS will undertake the fast-track upgrading of the semisubmersible drilling rig.

8 8 Business Keppel wins more jackup orders Jackup rigs designed and built by Keppel are the epitome of skill and reliability. Keppelite brings you four recent new orders. US$110 MILLION JACKUP FOR ATWOOD Keppel AmFELS Inc. announced on 3 March 2006 that its contract with a wholly-owned subsidiary of Atwood Oceanics Inc. (Atwood) for the construction of a new jackup rig has become effective. This contract follows the Letter of Intent signed between the two companies announced on 7 February The rig, excluding Owner Furnished Equipment, is valued at US$110 million and is due for delivery in the third quarter of Said Mr Ho Cheok Yuen, President and CEO of Keppel AmFELS, We are glad that Atwood recognises our ability to deliver solutions on time and on budget. I am certain that when delivered, this new rig will be a great addition to Atwood s fleet of rigs. This new rig will be built to the LeTourneau Super 116E design, with leg lengths of 477 feet (and can be upgraded to 511 feet), and capable of drilling wells up to 30,000 feet deep in water depths of 350 feet. Mr John Irwin, President of Atwood Oceanics, said Atwood and its affiliates are pleased to have the opportunity to work with Keppel AmFELS on this jackup project. Keppel AmFELS has a long established reputation as a strong shipyard with extensive experience in the construction of ultrapremium jackup drilling units. US$171 MILLION RIG ORDER FROM INDIA Keppel FELS has secured a contract from an India-based drilling contractor, Discovery A firm handshake between Mr C. Y. Ho, President/CEO of Keppel AmFELS (left) and Mr Alan Quintero, General Manager (Engineering) of Atwood Oceanics, signifying partnership in the construction of the new jackup rig for Atwood The KFELS B Class jackup rig design is the market standard for premium drilling rigs Hydrocarbons Pvt Ltd, a Jindal Group Company, to build a KFELS B Class jackup valued at US$171 million. This includes the design, engineering and construction of the rig as well as costs in getting the rig operationally ready. Designed for water depths of up to 350 feet, the rig can be deployed in environments such as Indian Ocean, Gulf of Mexico, West Africa and South East Asia. It can also be readily upgraded to 400 feet water-depth. Due for delivery in fourth quarter 2008, the new rig has a drilling depth capability of 30,000 feet and accommodation for 112 persons.

9 Business 9 Said Mr Sam Malhotra, Director of Discovery Hydrocarbons Pvt Ltd, We are glad to work with Keppel FELS for our first newbuild jackup. Keppel FELS has a commendable track record in design, construction and timely delivery of jackups. Their KFELS B Class, a tried and proven design in many offshore environments, has been verified to meet our drilling needs. We look forward to developing and strengthening our partnership with Keppel FELS as we serve the Indian and international offshore market. Mr Tong Chong Heong, MD/COO of Keppel Offshore & Marine (Keppel O&M), said, The Indian Ocean which has significant oil and gas reserves is one of the world s most sought-after areas. With this new contract, Keppel O&M is poised to entrench its footprint in the offshore Indian market as well. We are glad to partner Discovery Hydrocarbons as it grows their fleet of rigs to provide solutions for the offshore market internationally. THIRD JACKUP FOR AWILCO Keppel FELS has secured a repeat order for a third KFELS B Class jackup rig from Awilco Offshore (Awilco) at US$146 million, via the exercise of an option agreement. The first and second rigs were announced in February and August 2005 respectively. Customised to Awilco s requirements, the new rig, WilStrike, will be capable of drilling down to 30,000 feet in water depths of up to 400 feet. Delivery for this new rig is expected in second quarter Work on the first two rigs, WilCraft and WilBoss, is progressing well. Deliveries are expected in fourth quarter 2006 and early 2008 respectively. FOURTH RIG ORDER FROM SEADRILL Keppel FELS has secured a US$132 million contract from a wholly-owned special purpose company of SeaDrill Limited (SeaDrill) for a KFELS B class jackup rig. Delivery of this new order is expected in the second quarter of This order was secured via an option given to Odfjell Partners Ltd. (Odfjell) when it ordered its first rig in March Odfjell placed an order for its second rig in March In mid 2005, SeaDrill acquired Odfjell Invest Ltd. and was given the right to exercise Odfjell s option with Keppel FELS. Mr John Fredriksen, Chairman of SeaDrill, said in a comment, We are delighted to have signed another new building contract with Keppel FELS. A competitive price, a good delivery position and a very capable yard, makes this into a solid financial deal. The ordering of the unit further strengthens SeaDrill/Smedvig ASA s position as a serious and committed owner and operator of modern high end drilling equipment. SeaDrill is also affiliated to Cyprus-registered Seatankers Management Co. Ltd (Seatankers), which had earlier placed one jackup order with Keppel FELS. Ownership of this rig has been assigned to SeaDrill. With these developments and including the latest contract, Keppel FELS will to date be building four jackup units for SeaDrill. Mr Choo Chiau Beng, Chairman/CEO of Keppel O&M, said, We are glad to participate in SeaDrill s vision of building a fleet of premium drilling rigs. We are committed to deliver on time and on budget the four KFELS B class jackup rigs which have a proven track record of highly successful operation in different parts of the world. Like the three jackups, this new rig will be of the KFELS B Class design. It is capable of operating in water depths of up to 400 feet, drilling depth of 30,000 feet and accommodating 112 men. With these new orders, Keppel FELS is abuzz with activities Work on SeaDrill s first three rigs is progressing well at Keppel FELS yard. The first rig, SeaDrill 3, is scheduled for delivery in May this year. Upon delivery, she will be chartered to Total Fina Elf in Nigeria at a rate of US$166,000 per day for two years. keppelite

10 10 Business Keppel Land despatches documents on K-REIT Asia to shareholders Keppel Land Limited has on 20 March 2006 despatched the Introductory Document for the listing of K-REIT Asia on the Main Board of Singapore Exchange Securities Trading ( SGX- ST ), as well as a circular to Keppel Land shareholders in respect of the distribution in specie of units in K-REIT Asia. The listing of K-REIT Asia and distribution in specie together represent an important milestone which will both unlock value for Keppel Land shareholders and assist the Company in enhancing its position as a premier multi-national real estate corporation in Asia by way of leveraging its sterling portfolio of properties, strong network and quality brand. For Keppel Land, the distribution in specie establishes K-REIT Asia which will facilitate the redeployment of capital in investment properties to property development projects to generate higher returns; create an enlarged platform to generate feebased income and return significant sums of equity back to its shareholders. For Keppel Land shareholders, the formation and listing of K-REIT Asia will permit higher payouts from the initial portfolio of properties, give tax transparency for Qualifying Unitholders, transfer the benefit of about S$53.2 million in Section 44A tax credits to shareholders and provide shareholders with more choice and improved liquidity. K-REIT Asia will have an initial portfolio of four high quality office buildings from Keppel Land s stable of commercial developments: Prudential Tower*; Keppel Towers; GE Tower; and Bugis Junction Towers * about 44% of the total strata area of Prudential Tower Valued at S$630.7 million, K-REIT Asia s initial portfolio has strong potential to capitalise on rising office occupancy levels and rental rates in Singapore. Quality tenants including International Enterprise Singapore, Prudential Assurance, InterContinental Hotels Group, GE Pacific, Novartis, The McGraw-Hill Companies, KBC Bank and California Fitness provide a good, diverse tenant base, which will support K-REIT Asia s earnings. Bugis Junction Towers is one of four prime office buildings in K-REIT Asia s portfolio Subject to shareholders approval at the upcoming EGM on 11 April 2006, each Keppel Land shareholder will receive 200 K-REIT Asia Units for every 1,000 Keppel Land shares held as at 5.00 p.m. on 18 April No cash consideration is payable for these Units as this is a distribution in specie in lieu of a cash dividend. In so doing, Keppel Land will distribute up to 144,400,000 Units (or approximately 60%) of the 240,508,000 Units issued in part consideration for the sale and purchase of the properties. Keppel Land Group will retain approximately 40% of the issued Units. Professor Tsui Kai Chong, the Chairman of K-REIT Asia and a Director of Keppel Land and the Professor of Finance and Provost of SIM University, said, K-REIT Asia s initial portfolio of high quality properties will generate stable income and forms a strong foundation from which K-REIT Asia will grow. K-REIT Asia will be able to tap on Keppel Land s expertise, market knowledge of managing commercial properties and industry network for prospective yield-accretive acquisitions. Should shareholders approve the distribution in specie, it is envisaged that trading of K-REIT Asia Units will commence on 28 April Further details on the introduction of K-REIT Asia to the Main Board of SGX-ST and on the distribution in specie are set out in Keppel Land s circular and introductory document dated 20 March 2006 posted on SGXNET. keppelite

11 Business 11 More FPSO contracts for Keppel Shipyard Keppel Shipyard has been awarded two contracts valued at approximately S$130 million for the conversion of two new Floating Production Storage and Offloading (FPSO) facilities for Prosafe Production (Prosafe). A leading owner and operator of FPSO and FSO facilities, Prosafe has in the last nine years entrusted Keppel Shipyard exclusively to carry out the conversion of all their FPSO and FSO systems. Keppel Shipyard has completed six FPSO/FSO conversions for Prosafe since With these two FPSO conversions projects, the number of such projects carried out by Keppel Shipyard for Prosafe will add up to eight. Said Mr Nelson Yeo, Executive Director of Keppel Shipyard, We are delighted with the trust and confidence that Prosafe has in Keppel Shipyard. We will continue to focus on fast track conversions to further strengthen our market position. Added Mr Hugh Parry, Managing Director of Prosafe, We have entrusted Keppel Shipyard with the conversion of a number of sophisticated FPSO projects due to their strong track record. We have confidence in their reliable and quality service. The first award is for the conversion of the 25-year old tanker, M.T. Apollo, into an FPSO capable of handling a daily oil production of 90,000 barrels of oil per day (bopd), daily fluid capacity up to 150,000 barrel of fluid per day (bfpd) and having a storage capacity of 1.78 million barrels of oil. The work scope for the 257,865 dwt tanker will include the fabrication and installation of the internal turret, flare tower and helideck; integration of production skids, boilers and turbo alternators and renewal of bottom plates, as well as internal tank blasting and painting. Upon delivery in end 2006, the facility will be deployed in Polvo Field off Brazil for Devon Energy. The second award is for the conversion of a Suezmax tanker, a 25-year old tanker, M.T. Ionikos, into an FPSO capable of handling a daily production of 50,000 bopd, Keppel Shipyard has completed six FPSO/FSO conversions, including ABO FPSO, for Prosafe since 1997 daily fluid capacity up to 120,000 bfpd and having a storage capacity of 770,000 barrels of oil. Work on the vessel will include the fabrication and installation of the internal turret, flare tower and helideck; integration of production skids, boilers and turbo alternators; renewal of bottom plates, and internal tank blasting and painting. Due for completion in first quarter 2007, the FPSO facility will be deployed at the Tui Field located in the Taranaki Basin, offshore New Zealand for New Zealand Overseas Petroleum Ltd. Keppel Shipyard is the world leader in FPSO/ FSO conversions, having completed 56 FPSO/ FSO conversions and upgrading projects since It is also the leading yard in shiprepair and other vessel conversions. An innovative supplier of products and services in niche areas in the global offshore oil and gas industry, Prosafe is a leading owner and operator of FPSO/FSO vessels outside the North Sea, specialising in the supply, lease and operation of cost-effective vessels for projects where the company can differentiate itself through its innovative proprietary system designs, e.g. mooring systems and fluid swivels, and long proven track record. keppelite

12 12 Business The next lap for P-52 Having successfully completed the Singapore lap, the lower hull of P-52 has left Keppel FELS for Keppel FELS Brasil in Angra, Brazil, where it will begin its next lap. Dry-towed, P-52 left on 22 February 2006 and will take about a month of arduous seafaring before it arrives in Brazil. Upon arrival, the lower hull will undergo topside integration to form one of the world s largest floating production units (FPU). Standing tall at 34 storeys and with a main deck the size of 10 Olympic swimming pools, the P-52 FPU is being constructed using cuttingedge construction and engineering techniques. Through two years of sheer hard work and solid partnership between the Keppel-led consortium and Petrobras, P-52 is well on its way to completion. When deployed in the deepwater Roncador field in the Campos basin in 2007, the FPU will be able to produce 180,000 barrels of oil a day. Yeong Wai Seng, Senior Project Manager of Keppel FELS, who took the project through the Singapore leg shared, We are glad and relieved. Glad that it is a job well done on our part, achieving great engineering feats like the mating of the two sections of the lower hull. And we are relieved, knowing that we are passing the baton to our colleagues in Keppel FELS Brasil who are able to ensure that Keppel s stamp of quality will be evident anywhere in the world. keppelite Shouldering great responsibility, P-52 rests on Blue Marlim s shoulder sailing to the next lap. Farewell Singapore, Ahoy Brazil! An exceptional job Dear Michael, On behalf of Petrobras, I would like to say that we are very pleased with the exceptional job done by Keppel FELS. We have built up a very strong partnership and that has certainly helped us to achieve what I call SUCCESS. I would like to express my gratitude to those who have been working closely with the Petrobras team. Iqbal Rahuman and his engineering team. Yew Ming Yeong, S Y Tan and their production team, Leow and his commissioning team, Nonis, Marcus and QA team, W B Lim, Tan Ven Fu, Richard Tay, Chor How Jat, B H Woo, Wai Seng and many others. Unfortunately, I can t name all of them as the list would be very long. My sincere apologies for that. Last but not least, a very special thank you to Mr CB Choo and Mr CH Tong. Once again, thank you very much to all of you. I m looking forward to work with Keppel FELS again. The lower hull of P-52 is tugged out to anchorage to await the arrival of Blue Marlim a dry-tow vessel where it will then be loaded onboard before sailing to Brazil Best Regards, Flávio Siqueira Júnior P-52 Lower Hull Construction Manager

13 Business 13 Strengthening ties with Qatar The Middle East is becoming an increasingly important market for Keppel. Keppelite reports on two recent deals with Qatar. DRYDOCKING QATARGAS LNG CARRIERS Keppel Shipyard has entered into an Alliance Service Agreement for the drydocking of a fleet of Moss Rosenburg (MOSS) type of Liquefied Natural Gas (LNG) carriers chartered by Qatar Liquefied Gas Company Ltd (Qatargas). The five-year agreement was signed with MO LNG Transport Co., Ltd (MOL), Nippon Yusen Kaisha Ltd (NYK) and Kawasaki Kisen Kaisha Ltd (K-Line). The vessels under the fleet agreement are Al Zubarah, Al Khor, Al Rayyan, Al Wajbah, Broog, Zekreet, Al Wakrah, Doha, Al Bidda, and Al Jasra. Keppel Shipyard has been servicing this fleet of LNG carriers from Qatargas since The scope of work involves drydocking for survey, maintenance and repair. The first two vessels scheduled to call at Keppel Shipyard under this agreement are Al Wakrah (72,453 dwt) and Zekreet (72,316dwt) in early May this year. It is the third drydocking in Keppel Shipyard for both vessels. There is a growing demand for natural gas worldwide, particularly in Asia and the US. Keppel Shipyard is wellpositioned to support the growing LNG carriers market which is expected to treble by 2020, said Mr Nelson Yeo, Executive Director, Keppel Shipyard. NEW YARD WITH QATAR GAS TRANSPORT Keppel O&M has signed a letter of intent with Qatar Gas Transport Company Ltd. ( QGTC / NAKILAT ) to jointly develop and manage a major new facility in the Port of Ras Laffan, Qatar, for the construction, repair and maintenance of ships and other marine structures. Conclusion of the joint venture agreement is subject to approval by the Boards of Directors of NAKILAT and Keppel O&M. Mr Faisal Al-Suwaidi, Vice Chairman of NAKILAT, said, The new facility will be designed and constructed in accordance with best international practice, and suitable for the repair and maintenance of very large LNG carriers and a wide range of other vessels; the conversion of tankers to Floating Production Storage With its specialised facilities and expertise in the repair of LNG carriers, Keppel Shipyard is well positioned to support the growing market for natural gas & Offloading and Floating Storage & Offloading systems, and the construction of specialised small ships, such as offshore supply vessels. The yard will also be suitable, with some additional investment, for the fabrication of structures for the offshore oil and gas industry (such as jackup drilling rigs, process modules and decks, jackets, wellhead decks, flare booms, etc.), and the fabrication of components for land-based petrochemical and industrial plant. Additionally, the facility will provide life-cycle support in all the markets it serves. Mr Tong Chong Heong, Managing Director and Chief Operating Officer of Keppel O&M, said, For some time, we have been servicing LNG carriers for Qatar. We are pleased to deepen our relationship and partner with NAKILAT in this significant new venture, which is in line with our near market, near customer strategy. Planning of the new yard is already well advanced, and completion of the first phase of development is scheduled for fourth quarter of keppelite

14 14 Business The Libeskind signature at Keppel Bay Keppel Bay will bear the signature of a world class architect, celebrated for its iconic developments when the Libeskind-designed residential development is launched later this year. In the words of architect Daniel Libeskind, there will be no where else like it in the world. This new phase in Singapore s only true waterfront precinct will rise on a 84,000 sqm parcel which encompasses the existing Keppel Marina site, with full frontage to the sea augmented by an extensive shoreline of 750 m. About 1,000 units of premium luxury homes will have vantage points like no other residential development in Singapore. The design will extend what is already there and take it to the next level, said Mr Libeskind who draws his inspiration from the genus loci or spirit of place. It is not an anonymous building that you can see anywhere else in the world, but will be clearly inspired by very Singaporean elements, and the site which has to do with reflections and the view to nature, promised Mr Libeskind. The Libeskind development is set to be the icon to define the whole waterfront precinct which includes Harbourfront, Caribbean at Keppel Bay, Sentosa and its upcoming integrated resort and Vivo City, touted as Singapore s largest entertainment and retail hub. The much anticipated launch of the first 200 units of this new iconic waterfront development is expected in the fourth quarter of keppelite World celebrated architect Daniel Libeskind shares with the Senior Minister Goh Chok Tong the waterfront lifestyle he envisions at Keppel Bay Bourbon AHTS delivered Bourbon Artemis, an Anchor Handling Tug/Supply (AHTS) vessel with 120 tonnes of bollard pull, is the fourth of seven vessels Keppel Singmarine has delivered to the proud owner, BOURBON Offshore Surf (Bourbon). Godmother Mrs Anne- Aymone de Chateauvieux, wife of Mr Henri de Chateauviex, a Director of Bourbon, graced the christening ceremony on 22 February 2006 held at Keppel s Benoi yard. A sister vessel to three earlier AHTS vessels, Bourbon Aladin, Bourbon Apsara, and Bourbon Alexandre which were also delivered by Keppel Singmarine, this medium-size vessel is designed and fitted with a Class I dynamic positioning (DP) system, firefighting system, with capabilities to be upgraded for standby/ service duties and DP Class II. All the three subsequent vessels for Bourbon are expected to be delivered this year. keppelite

15 Business 15 Indonesia s best golf course in Ria Bintan Readers of the golfing publication, Asian Golf Monthly, have voted Ria Bintan s Ocean Course as the Best Course in Indonesia for the third consecutive year. Into its sixth year, the Awards are based on readers survey and reward the best of the best in the industry. Mr Jeffrey Low, General Manager of Ria Bintan Golf Club said, All our staff are proud of the award and are inspired to improve further on the course maintenance and service standards to ensure that all golfers continue to enjoy playing at Ria Bintan. We have been upgrading our turf machinery to produce better maintenance results and practices. This is an on-going process by us to present a well-maintained course to golfers coming to Ria Bintan in the years to come. keppelite Four in a row It was another feather on the cap for Sedona Suites Royal Park, Hanoi. Royal Park is the proud recipient of the Vietnam Quality Award and Golden Dragon Award in 2005 and is voted for the fourth consecutive time as the Best Luxury Serviced Apartment in Hanoi. Quang Ba Royal Park JV Co. Ltd, the developer of Sedona Suites Royal Park, was also conferred the Third Category Labour Medal by H.E. Tran Duc Luong, President of the Socialist Republic of Vietnam. Conferred by the reputable Vietnam Economic Times Magazine in cooperation with the Vietnam National Administration of Tourism, and presented by Mr Nguyen Tien Dinh, Chairman of Hanoi Trade Union, the award recognises the social and economic contribution made by Sedona Suites Royal Park to the city of Hanoi, through Excellence in the Hospitality and Tourism Industry in Vietnam. In thanking the Vietnamese government for the honour, Mr Linson Lim, General Director of the JV and Assistant General Manager, Regional Investments (Vietnam), Keppel Land, shared the success story of the joint venture at the awards ceremony held on 23 March He said, Both the foreign and local partners in the JV share the same vision of creating a quality development that would satisfy the needs and Home away from home for many people from different parts of the world, Sedona Suites Hanoi has bagged several awards and accolades attesting to its high standard of product and service quality expectations of a discerning expatriate community. That is the formula of success that has made Sedona Suites Royal Park the preferred address of those from the diplomatic corps, multinational companies and business as well as leisure travelers. In its continued commitment to the local community, the JV made a donation of VND 100 million to a charity organisation that benefits the poor and underprivileged. keppelite

16 16 Business Friendship that spans 20 years Keppel Shipyard and N i e d e r e l b e Schiffahrtsgesellschaft mbh & Co. KG (NSB), with bonds of friendship spanning 20 years, gathered to celebrate the docking and repair of NSB s 150th vessel, CMA CGM Voltaire, at Keppel Shipyard on 23 February Keppel Shipyard s close and long-standing relationship with Mr Helmut Ponath, President & CEO of NSB, started in 1984 when Mr Ponath first worked with Mr Nelson Yeo for the drydocking of a vessel from his old company. In 1988, the repair of NSB s first vessel, Proud Eagle, was carried out at the old Keppel Shipyard at Telok Blangah. Since then, the partnership has strengthened over time. The mutual trust and bond have blossomed into familylike ties at the two companies. This is clearly evident in the strong turnout of the past and present Keppel Shipyard team members who had worked with NSB over the years. Mr Choo Chiau Beng, Chairman & CEO of Keppel Offshore and Marine (Keppel O&M), and Mr Tong Chong Heong, MD & COO Celebrating friendship (from left): Mr Choo Chiau Beng, Chairman and CEO of Keppel O&M; Dr. Fritz Muller, Owner of CONTI REEDEREI ; Mr Tong Chong Heong, MD and COO of Keppel O&M and MD of Keppel Shipyard; Mr Bozidar Petrovic, Vice President, NSB; Mr Helmut Ponath, President & CEO of NSB; Mr Herbert Prinzen, Owner of GEBAB Holdings; Dr. Hans Vieregge, Board Member of Norddeutsche Landes Bank; Mr Nelson Yeo, Executive Director, Keppel Shipyard of Keppel O&M and Managing Director of Keppel Shipyard, were also present to extend Keppel Shipyard s appreciation for NSB s continued support. Mr Nelson Yeo, Executive Director of Keppel Shipyard said: I am proud to have project managers like Kelvin Goh and Jeffrey Chua who are committed to dedicated service and strong partnership to NSB, our friend and valued customer. I am confident that our partnership will grow from strength to strength. We look forward to the docking and repair of the 200th NSB vessel in our yard in the near future. keppelite The new relay team for NSB In the nine years that Kelvin Goh has been with Keppel Shipyard, the appointment as Project Manager for NSB vessels docking at Keppel Shipyard is certainly his major career highlight. The 150th vessel CMA CGM Voltaire is my fourth NSB baby. It is a great honour to be entrusted as the Project Manager for the 150th NSB vessel docking in Keppel. I enjoyed working with the NSB team because we share the passion and enthusiasm. My Mr Bozidar Petrovic, flanked by Mr Nelson Yeo, the first repair manager to undertake NSB s Proud Eagle, and Mr Kelvin Goh, the Project Manager for 150th vessel experience working with the first NSB vessel BUXCROWN with Mr Ponath has trained me well to deliver the best for NSB.

17 Business 17 Delivering global solutions To succeed, a shipyard must have strong capabilities, understand the needs of its customers and be able to provide solutions. Mr Choo Chiau Beng, Chairman & CEO of Keppel Offshore & Marine (Keppel O&M) shared this formula, which mirrors that of Keppel, at the World Maritime Technology Conference (WMTC) 2006 from 6-10 March in London. Illustrating from the oil and gas value chain, Mr Choo discussed the role of a shipyard in the upstream and midstream sector. In upstream, with its design, construction and conversion capabilities, Keppel is able to provide seismic, drilling, support and maintenance vessels for the array of activities in this area. While in midstream, Keppel s expertise lies in providing repair and upgrading services to a suite of tankers and transporters including Liquefied Natural Gas (LNG)/ Liquefied Petroleum Gas (LPG) and crude oil carriers. Mr Choo also spoke about striking a win-win relationship between the shipyard and its customers. Mr Choo (second from left) meets His Royal Highness The Prince Philip Duke of Edinburgh at the World Maritime Conference 2006 in London Citing Keppel O&M as an example, he discussed how the group partners its customers to provide maximum value that can meet their needs and business objectives. Aptly themed Maritime Innovation Delivering Global Solutions, WMTC 2006 aimed to promote integrated solutions to industry-wide issues while assessing its impact on global economies now and in the future. keppelite Keppel FELS Brasil achieves double certification Keppel FELS Brasil, together with its subsidiary, BrasFELS in Angra dos Reis and its facility in Niterói, have been awarded the Safety and Occupational Health Administration OHSAS and ISO System of Environmental Administration certification by Bureau Veritas Quality International (BVQI) in February With this, Keppel FELS Brasil achieves the rare distinction of being the first company in Brazil s marine industry to obtain both qualifications. Said Mr Milton Areas, Corporate Manager of Health, Safety and Environment (HSE), Keppel FELS Brasil is committed to uphold the highest standards of safety and environment at our workplace to ensure we provide products and services of the highest quality to the marine sector in Brazil. This marks an important achievement in aligning the systems and processes of our Brazilian operations with that of Keppel Offshore and Marine to comply with the international environmental and safety standards. It is the collective achievement of the employees of Keppel FELS Brasil, especially the HSE teams from BrasFELS and Niterói, beamed President & CEO of Keppel FELS Brasil, Mr Tay Kim Hock. keppelite

18 18 Cover Story Entertainment capital at Caesars Singapore to draw tourists Caesars Singapore will showcase many of the world s firsts, leveraging the power of media and state-of-the art technology. That s entertainment! Expect new definitions to what is entertainment and being a tourism hub should Keppel Land and Harrah s Entertainment (Harrah s) win the bid for the Marina Bay Integrated Resort. James Cameron at the iport, Star TV, Unusual Entertainment and Teamwork Films are some of the stellar cast who will be joining Keppel-Harrah s in creating the Caesars Singapore platform for hubbing attractions, media and technology. These entertainment moguls complete the team of Best of the best namely, Architecture Daniel Libeskind; Conventions SMG, Suntec Singapore; Arts & Culture Centre Pompidou; Entertainment AEG Live; Retail Taubman Asia, Gordon Group and Peter Marino many of whom are also making debuts here through the Keppel/Harrah s IR. We firmly believe in being inclusive. In addition to utilising our internal expertise, resources and network, we want to identify the strongest and the best in and around us to strengthen our bid, said Mr Lim Chee Onn, Chairman of Keppel Land. We believe a comprehensive array of expertise will make the IR more successful than that which relies on just one or two partners. In assembling leaders and innovators of their respective fields, Keppel-Harrah s harnesses the pool of creative ideas and specialised expertise to collectively craft dynamic content for its offerings. The result of which are distinctive and selfrenewing experiences which always remain fresh and compelling. PORTAL TO THE FUTURE OF ENTERTAINMENT This is immersion. This is the iport. Bringing the experiential iport to reality will be the visionary himself, Academy Award winner James Cameron who has been slated the executive producer. Take a quantum leap into the future through the iport at Caesars Singapore, where art, architecture, cuttingedge technology and entertainment combine to give the ultimate immersive experience. iport is something that is truly pathfinding, something that has never been done anywhere in the world, said Gary Loveman, Harrah s Chairman, CEO and President. We believe this will be the gateway attraction for Asia. iport will be a 1 million sf, 16-storey state-of-the-art facility with dozens of major attractions, interactive rides and groundbreaking shows, Larger than life Academy Award winner James Cameron will champion the production of the immersive virtual landscape for iport at Caesars Singapore

19 19 along with complementary dining and retail experiences. Describing the creative essence of iport, Craig Hanna, chief creative officer of Thinkwell Design & Production, said, This immersive entertainment experience will wow visitors with amazing environments, thrilling experiences and much more. iport packs in a world of interactive virtual content interlaced with live performances across five levels of 30 to 40 ft each. Aimed at fully immersing the visitor in its 3D realm, each zone within iport will bring to life scenes in action films, science fiction movies and even wildlife documentaries. From roleplay to simulations to educational safaris, there will be something for everyone in the family. Throbbing at the heart of iport will be the Media Canyon, which spans the full height of the 16-storey building. The Media Canyon comprises two 43m video cyclones of pulsing video display from floor-to-ceiling. Another attraction to look forward to is the gondolatype people mover, which meanders through the building. It extends from the The pods at iport which will ferry visitors from one immersive experience to another base of the Media Canyon to the top of iport ferrying visitors in pods from one virtual zone to another. iport, for me, is Christmas morning. It s a chance to play with all the toys, said Mr James Cameron. This is a chance to push the envelope and do something that s never been done. Think of it not as a space, but as a total immersion experience. A step through a door into the future, he said. STAR-STUDDED ATTRACTIONS Adding another star to its tourism appeal, Keppel- Harrah s has onboard STAR, Asia s leading media and entertainment company to create a wide range of attractions at the Marina Bay IR by leveraging the latter s popular media brands and assets. A fully-owned subsidiary of News Corporation, STAR is Asia s largest broadcaster, reaching 300 million people across 53 countries in Asia through 58 channels in nine languages. The company controls over 20,000 hours of Indian and Chinese programming and also owns the world s largest contemporary Chinese film library, with more than 600 titles, featuring superstars including Jackie Chan, Chow Yun Fat and Bruce Lee. Our agreement with STAR is another significant step toward the creation of an experientially compelling entertainment destination at Singapore s Marina Bay, said Richard Mirman, Senior VP of business development for Harrah s. We believe having a powerful media partner will help drive tourism and build awareness for the integrated resort throughout Asia and specifically in the countries of China and India. STAR, together with Caesars Singapore will create a stateof-the-art broadcast studio, a Channel [V] club, a STARbranded attraction within the iport, and will integrate broadcast capabilities into all of the live entertainment venues of the IR. STAR will also have access to other live entertainment and events hosted by Caesars Singapore on a year-round basis. Continued on page 20...

20 20 Cover Story...continued from page 19. This is the first time an active production studio as such can be found within an IR. The broadcast studio will be the home of STAR in Singapore and will be a highenergy area of the integrated resort with activities throughout the day. Viewing space will also be provided outside of the studio so that visitors can watch their favorite shows being broadcast live. The iport will be a state-of-the-art facility with dozens of major attractions, interactive rides and groundbreaking shows Views from the top Mr Lim Chee Onn, Chairman of Keppel Land I think the government is looking for execution and roll out. I don t mean just by completing the project or physical buildings but the software such as marketing and know-how, and the ability to provide a platform for which we can build Singapore into a hub for many economic activities. What we strive to do is to use this integrated resort as a platform and integrate it into our economy. So arising from the platform will be a whole range, a whole variety of economic activities that could come in many forms. This project is not just about real estate or entertainment. It is part and parcel of the tourism sector in Singapore. Mr Gary Loveman, Chairman, CEO and President of Harrah s Entertainment We have put together an integrated resort that has much more to it with much more innovative content to drive tourism to Singapore. This is after all, the overarching objective of this exercise. We believe the project itself will constitute some 10,000 jobs directly in the integrated resort. And based on common multiples that we observed elsewhere in the world for projects like these, we think in the neighbourhood of 35,000 jobs will be generated purely by the integrated resort itself. To the degree that it spawns the level of tourist visits into the city that we think it will, there is much more that can come from there. As Asia s leading media company, STAR takes pride in owning a depth of media brands and assets that are ever-present, and instantly recognisable to people from Mumbai to Guangzhou, Taipei to Singapore, Dubai to Hong Kong and everywhere in between. Every day, our programming connects with over 100 million viewers across Asia they may be riding on the twists and turns of our Indian soap serials on STAR PLUS, karate chopping along with Jackie Chan on STAR CHINESE MOVIES, following Manchester United s every move on ESPN STAR Sports or humming along with their idols on Channel [V]. The agreement with Caesars Singapore provides us a unique opportunity to extend our popular media brands and assets into a

21 21 whole different realm, where visitors to Singapore can experience the magic of television productions firsthand. We are excited to join Harrah s and Keppel in creating an environment which will amuse, entertain, and enthrall so many people every day, said Mr Steve Askew, COO of STAR and President of STAR Entertainment. In the pipeline are plans to create a themed attraction within iport, to allow visitors to watch their favorite shows being recorded, participate in live and taped shows, and to visit the sets of famous programmes. STAR and Caesars Singapore will also work closely with leading record labels and promoters to secure talent for performances at the Channel [V]-branded club, which is set to be one of the largest, most hip and interactive night spots in the world. The Channel [V] club will give visitors a chance to connect with some of their favourite music, artists and personalities. We are fully confident that this project will be a huge success for our partners, our viewers and most importantly the visitors and people of Singapore, said Ms Askew. The resort will become a magnet for worldclass showbiz productions and create an unmatched entertainment experience for every visitor. UNUSUAL-TEAMWORK FOR LIVE CONCERTS For live entertainment to allow Asian fans to come up close and personal with their favourite idols, Keppel- Harrah s has brought together live entertainment experts Teamwork Film (Teamwork) of New Delhi, India, and local company Unusual Entertainments (Unusual) to tap the huge India and China markets. These leading concert specialists with expertise in planning live events for their respective markets will give Caesars Singapore and AEG Live advice and direction on entertainment venues, liveentertainment events and marketing strategies. We are excited to have Teamwork and Unusual join us in our effort to create a compelling entertainment destination in Singapore, said Mr Mirman. The trio of AEG Live, Teamwork and Unusual will ensure Caesars Singapore presents its visitors with a wide array of exciting and must-see liveentertainment offerings with local, regional and global appeal. Unusual, which brought Hong Kong singer Sammi Cheng and Taiwanese groups 5566 and S.H.E to Singapore, will also work with Chinese artistes to tailor shows especially for Singapore. Unusual is the forerunner in the Chinese concert entertainment scene. The name Unusual is synonymous with promoting world-class acts from Hong Kong and Taiwan in Singapore, said Mr Leslie Ong, Executive Director of the Unusual Group of Companies. We look forward to putting that skill and expertise to work at Caesars Singapore, creating yet another reason for locals and tourists to visit this world-class resort. Similarly, Teamwork, which manages stars such as pop diva Usha Uthup will showcase the best talent India has to offer in traditional and contemporary music and performances. World-class concerts will be staged at Caesars Singapore Indeed, Keppel Land and Harrah s have set the stage to put Caesars Singapore into the limelight in Asia by creating an unrivaled entertainment hub. keppelite

22 22 Business Keeping a promise sound Safe and secure flanking Anthony (front centre) and part of the Keppel O&M security team is the Outrider Squad Each time a terrorist activity takes place, it reminds us of the uncertain times today. Targets are indiscriminate, making almost anything anywhere a potential. Shipyards are no exception. In an environment where safety and security are paramount and adverse distractions a liability, nothing is left to chance. That is why Anthony Toh, Keppel O&M Group Security Manager and his team of Senior Officers lead a 114- strong Group Security Team to ensure that customers and stakeholders are fully assured of the security and safety of the yards. The team adopts a twopronged approach to the security of the yards. The first is to ensure that the daily proceedings of the yards are in order and the second, strategic long-term investments and implementation of systems to keep antagonists at bay. Senior Guard Commander, Mahinder Singh is one of the outriders that the security team deploys to patrol the yard daily. During his patrols, he ensures that everyone adheres to the yard rules, looks out for any irregularities and trespassers from land or sea. Mahinder shares, For the past 17 years, I patrol the yard and take enforcement actions against any offenders. As a result, I may have offended some people or caused them to be wary of me. However, I take pride in carrying out my duties fearlessly. I also ensure that vehicles do not obstruct the flow of traffic or cause any obstructions in order to facilitate all the work in the yard, he added. Anthony and his secondin-command, Desmond Oliveiro, who between them have a total of 70 years of experience with the Singapore Police Force, train and educate their officers. Providing an account on how he taught his officers to do surveillance when they spotted a suspicious bag (filled with copper trimmings) lying around in the yard, Anthony said, I told them to be in their civilian clothing to be inconspicuous. Then to keep a lookout on the bag at a distance. Finally, the culprit came back to collect the bag and was nabbed by us! The bigger challenge is in the event of a crisis where the systems set up are tested.

23 Business 23 requirements for world-class maritime facilities. On 13 Jan 2006, the SSWG held its inaugural seminar to share their on-going partnership activities with the Singapore Police Force, Singapore Civil Defence Force, Police Coast Guards and the Maritime & Port Authority of Singapore (MPA) on security exercises and drills to meet the ISPS requirements. For all its efforts, the Watch Group was presented with a Silver award by the South West Community Development Council and a Gold award by the National Community Safety & Security Program (CSSP). We invest a lot of resources, time, money, manpower to ensure safety in the yard because we never know what will happen. Accidents do happen and risks are ever present, but through these investments, the detrimental effects of these adversities can be significantly reduced, said Anthony. Daunting, the task may be, it is all in a day s work for Anthony and his team, as they contribute to delivering the promise of On Time, On Budget to customers. keppelite Hawk-eye Senior Guard Commander, Mahinder Singh asserts that Big Brother is always watching These have been purposefully and painstakingly developed over time to effectively respond to the crisis. One initiative is the Shipyard Security Watch Group (SSWG), which comprises of Keppel O&M, Singapore Technologies Marine (ST Marine) and Jurong Shipyard. Together with the Singapore Police Force and other Home Affair agencies in the Jurong Industrial Estate, the SSWG serves to tighten the overall security within the immediate vicinity through joint patrols. Combined training and exercises that include crisis simulations such as chemical threats, bomb hoaxes and hostage situations are also carried out to strengthen inter-yard relations. These simulations are carried out in compliance with the International Ships & Ports Security (ISPS) regulatory Realistic simulation exercises are carried out by the Keppel O&M security team to fine tune the co-operation and coordination with external agencies like the Singapore Police Force

24 24 Business Keppel Land joins Singapore Compact Taking a step further in its commitment to corporate social responsibility (CSR), Keppel Land has joined the Singapore Compact. Formed in January 2005, Singapore Compact serves as a national platform for fostering dialogue and collaboration on CSR through training, collaboration and practical project implementation. Keppel Land shares the Singapore Compact s belief in the importance of integrating social values and mission within business decision-making, to achieve positive and sustainable outcomes towards business, environment and the community at large. Every Keppel Land development demonstrates the Company s commitment to the community. Home to some 2,200 shrubs and 800 trees, Keppel Land s luxury waterfront condominium, Caribbean at Keppel Bay, for instance, was bestowed two awards in the Landscape Industry Association (Singapore) Awards of Excellence These include the Gold Award in the Implementation/Residential category for the quality of plant materials used, installation techniques and craftsmanship, and Silver Award in the Maintenance category for the condition of the plants and the cleanliness of the site. Similarly, One Raffles Quay, Keppel Land s premier office development at Marina Bay which is expected to be completed later this year, features energy efficient solutions such as the use of an energy wheel as heat Environment conservation and eco-friendly initiatives form part of Keppel Land s commitment towards quality living and work spaces exchangers to pre-cool air before supplying to the Air Handling Units (AHUs), variable air-volume system for optimum control of air- conditioning and variable speed drive in AHUs to cut down fan speed and reduce energy consumption for airconditioning. keppelite Thai Chee Ken steps down Mr Thai Chee Ken has resigned as Director of Keppel Land, and has relinquished his appointments as Chairman of the Audit Committee and Member of the Nominating Committee. Mr Thai has been on the Board of Directors of Keppel Land since 1997, and has contributed much to the growth of the Company. The Board of Directors would like to express their appreciation for Mr Thai s invaluable contributions to the Company. keppelite

25 Business 25 Visitors from Norway Onboard Deep Driller 2, the first Super B Class jackup built for Sinvest Delegates from valued customer, Sinvest ASA (Sinvest) of Norway visited Keppel FELS on 9 March A dialogue session was held during the visit to allow both companies to further strengthen their relationship. The delegates, led by Mr Bjarne Skeie, Chairman of Sinvest, toured the yard and saw the progress of various Sinvest projects. Keppel FELS is building five Super B Class jackup rigs for Sinvest. The projects are in various stages of completion. The first rig, to be named Deep Driller 2, will be christened on 8 April Involved primarily in investments relating to the offshore industry, Sinvest ASA is a public company quoted on the Oslo stock exchange. keppelite China yard gears up for more work With the number of contracts secured by Keppel Offshore & Marine increasing steadily, sister yards in Keppel s global network are gearing up to share the workload. At Keppel Nantong Shipyard, renovation and refurbishment works have already been completed and the yard has commenced construction works for the offshore support vessels (OSVs) under contracts clinched by Keppel Singmarine. New facilities and equipment such as cranes and steelplate cutting machines have been added. On 11 February 2006, representatives from Gulfmark Offshore Inc., Keppel Singmarine s longtime customer, visited the yard. They were pleased with the environment and capabilities of the yard. Keppel Nantong Shipyard is currently building four Anchor Handling Tug/Supply (AHTS) vessels for owner Hadi Offshore Pte Ltd., a newly established Singapore subsidiary of Saudi Arabian company, Hadi H. Al Hammam Establishment, and two AHTS vessels for Gulfmark Offshore, Inc. The vessels are expected to be delivered progressively from third quarter 2007 till the third quarter of keppelite Keppel Nantong Shipyard s management share the capabilities and facilities with guests from Gulfmark Offshore

26 26 Business Focus on human capital Keppel O&M hosted delegates from the Ministry of Manpower Foreign Workforce Department (MOM) and the Economic Development Board (EDB) on 8 February 2006 for a dialogue session and yard visit to understand the operations of the yard. Said Mr Tong Chong Heong, MD and COO of Keppel O&M, The industry has a compelling need for a constant stream of tradesmen and for their skills to be upgraded. Keppel O&M focuses on multi-pronged human capital development initiatives to recruit, train, nurture and retain talents in higher valueadded positions, such as engineers, management and supervisors. These initiatives include scholarships, further education sponsorships for employees, participation in career fairs, rehiring of retired but physically fit employees and supporting various institutions in nation-wide recruitment drives, such as the SuperV programme, Republic of Singapore Navy career transition programme and the Yellow Ribbon programme. Urging for more mutually beneficial initiatives, Mr Tong said, We look forward to more such dialogues with MOM and EDB to meet manpower challenges faced together. keppelite Mr Michael Chia, Executive Director of Keppel FELS (front) walks the ground with the MOM and EDB delegation to provide them with a better understanding of the yard operations Going the extra mile with Singapore Petroleum More than 40 cars took part in the weekend drive-away to Genting Highland on 25 February The drive-away was the second of such collaboration between Singapore Petroleum (SPC) and Mediacorp Publishing after the successful expedition to Terengganu in August last year. All participants were treated to a special 20% discount on petrol at SPC Tuas before setting off on the 460- kilometre journey. The event was a star-studded event as the convoy was flagged off by Irene Tan (Rosie from Phua Chu Kang) and Shaun Chen (Xiao Xin from Channel 8 s Holland V) at the Raffles Marina. Held in conjunction with the drive-away was the popular SPC Mileage Challenge. This year s challenge produced two winners instead of one. The results were very encouraging as both winning cars outperformed their specifications by a whopping 70.49% and 67.49% respectively! Said winner Mr Toh Chee Chuan, We never really expected to win with six persons onboard, but we are all pleasantly surprised to learn that our car completed the entire journey with less than 22 litres of petrol! keppelite

27 Business 27 Excellence award for Keppel FELS Construction of WilCraft, the maiden KFELS B Class jackup for Awilco Offshore (Awilco) began in April last year. Work on the rig has progressed well, culminating to the project team achieving one million manhours without a lost time incident in February this year. Awilco has recognised this achievement by presenting Keppel FELS with a Safety Excellence Award and a Safety Bonus of US$10,000. This commendation is testament to Keppel Offshore & Marine s commitment to excellence in safety, where every employee is inculcated with the value to make safety a part of life. Awilco too shares this value. In its commendation letter, Project Manager Pete England wrote, (safety) is something that we have come to expect as second nature from Keppel FELS. Yet, what impresses us further is that on WilCraft, this has so far been achieved without any let up on the drive to meet schedule and quality targets, despite the current unprecedented workload in your yard. Mr England added, Safety is one of the foremost concerns for Awilco Offshore in our fleet expansion programme, and it is for this reason that all our jack-up rigs are equipped with a significantly increased degree of mechanisation within the pipehandling process areas. The challenge for Keppel FELS will be to safely and successfully install, test and commission this considerably increased scope of equipment for vessel delivery in the fourth quarter of this year. We would like to take this opportunity to encourage you to continue in the same exceptional drive and spirit that you have displayed so far, and by doing so, we are confident that you will successfully surmount these impending challenges safely. To this challenge, our response is Can Do! keppelite Another successful repair for ENSCO Keppel FELS has delivered on schedule to long-time customer ENSCO yet again. In October 2005, ENSCO contracted Keppel FELS for a fast track repair job on ENSCO 56. After a fourmonth stay in the yard, the F&G Mod 2 jackup rig was ready for its next assignment in New Zealand. The project scope included upgrading of the drill floor and cantilever systems, painting works and installation of additional living quarters. ENSCO 56 departs Keppel FELS yard as scheduled, ready for its next assignment Rising to the challenge, Senior Project Manager Wilson Goh and his project team began planning for the project before the rig even arrived. Rig inspections offshore prior to the rig s arrival at the yard allowed the project team to assess the job scope and look into the engineering details. Once the necessary assessments were made, material procurement and pre-fabrication works were carried out. Upon its arrival, the project team swiftly launched into action. The completion of this repair project marked the first repair project with ENSCO s new Project Manager, Ron Couet. He said, Although this was my first repair project with Keppel FELS, we shared an excellent working relationship. The strong relationship has never changed. I remember how strong it was when I was first here in Through this project, I can understand why ENSCO and Keppel FELS have enjoyed such a long standing relationship. I am looking forward to our future projects together. keppelite

28 28 Team Staging class acts Keppel continues to play its part in growing the local arts scene by setting the stage for the celebration of artistic brilliance. On 13 March 2006 at the Esplanade, Keppel showcased a world class act The Gala Concert: Lorin Maazel and the Singapore Symphony Orchestra (SSO) to classical music lovers in Singapore. The evening presented timeless classical favourites Tchaikovsky and Mussorgsky s masterpieces by the premier Asian orchestra and music prodigy Lidia Baich, led by world celebrated Maestro Lorin Maazel. The resounding applause for encore and curtail calls attested to their riveting performance. Guest-of-honour Mr Raymond Lim, Second Minister for Finance and Foreign Affairs, as well as Keppel s guests, including Keppel Group s Board of Directors and their business associates, were greatly impressed by the masterful weaving of music by Maestro Maazel, world renowned as one of the most distinguished conductors of all time. The marvellous Maestro Maazel However, all eyes were inevitably drawn to the Lady in red the talented and young violin soloist Lidia. Regarded as one of the most extraordinary young violinists on the global concert scene today, the 20-year-old Russian won her first international competition at the tender age of eight. and I was also very moved by the flawless performance by Ms Baich. The previous evening, the great Maestro celebrated his 76th birthday in a private dinner co-hosted by Keppel Chairman Mr Lim Chee Onn and Professor Cham Tao Soon, Chairman of the SSO at Conrad Hotel Singapore. Keppel and the SSO celebrated Maestro Maazel s 76th birthday: (from left) Chairman of the SSO Professor Cham Tao Soon, Maestro Lorin Maazel and Keppel Chairman Mr Lim Chee Onn Many were spellbound by her extraordinary performance on a violin by Joseph Guarnerius del Gesu ex Guilet from 1727, lent to her by the National Bank of Austria. Mr Dennis Tay, Keppel Land s GM of Marketing shared his appreciation of the concert, This is one of the best performances by the SSO This is not the first time that Keppel has partnered the SSO. Last March, the Keppel Group sponsored the SSO at the prestigious Avery Fisher Hall in New York s Lincoln Centre, United States, in a sold-out performance led by SSO s Music Director Lan Shui, that also staged renowned cellist Yo-Yo Ma and violinist Gil Shaham. keppelite

29 Team 29 A helping hand to the Clippers Enroute from Singapore to Qingdao in China, the 10-strong Clipper fleet was suddenly diverted to stopover at Subic Bay, Philippines, on 5 February 2006 due to keel problems. A survey identified an issue with the connection between the outer skin of the hull and the keel. Coming quickly with aid where possible, the Keppel Group, through its offshore and marine division, assisted in the supply of brand new keel bolts for the entire fleet of Clippers. As a Race Partner of Singapore s entry to the Clipper Race Uniquely Singapore, Keppel have shown tremendous support to the Clipper Race, playing host along with other Race Partners when the fleet visited Singapore in January This time, they have generously stepped in with logistical help, supplying crew with accommodation for their stay in the Philippines and now with the engineering and supply of 220 keel bolts for the Clipper fleet, said Race Director Mr Tim Hedges of Clipper Ventures. Each boat is fitted with 21 bolts, weighing 2.5kg each and every bolt is custom- Sending-off in Filipino style. The Subic Shipyard & Engineering team turned up in full force to cheer on The Uniquely Singapore Clipper crew made using the latest Computer Aided Design technology. With a team of around 90 people working on the fleet (amounting to around 1000 daily manhours), the rectification work was completed in four weeks. While the repairs were underway, the remaining Singaporean crew put up at the corporate accommodation of Subic Shipyard & Engineering, Inc. (SSEI). Keppel is proud to be of assistance to the Clipper Race and to be associated with the spirited adventure seekers who will stop at nothing to overcome the odds. Whether Clipper and their crew are in Singapore, the Philippines or anywhere else in the world, we will always be delighted to find solutions in any way we can, added Ms Wang Look Fung, General Manager of Group Corporate Communications, Keppel Corporation. Located in Philippine Economic Zone Authority area of Subic, Zambales, SSEI is a member of the Keppel Offshore and Marine group. The company is noted for its repair and conversion works on supertankers and Floating Production Storage and Offloading (FPSO) vessels. Said Mr Charles Yap, President and General Manager of SSEI, Extending the Singaporean hospitality to our friends in need in a foreign land is our pleasure indeed. The Clipper Race set sail again on 25 March from Subic Bay in the Philippines, after completing a series of sea trials. The second half of Leg Four (Race 6) was re-commenced. As a Bon Voyage gift, SSEI gave away packs of Philippines very own unique dried mango to sweeten the journey for the Clipper crew. keppelite

30 30 Team KRC in efforts to promote health Members of the Keppelite Recreation Club (KRC) were out in force in Orchard Road on 18 February 2006 to help sell coupons at the launch of SingHealth Foundation s Save Money, Save Lives Project Proceeds from this fundraising project will go to supporting SingHealth s medical research in the fields of cancer, heart disease, diabetes, childhood hereditary disorders and neurosciences. Despite having busy work schedules and having to sacrifice a Saturday, the volunteers from Keppel were glad that they could be part of a good cause. Winson Lim, Assistant Purchasing Officer at Keppel Shipyard shared, I want to lend a helping hand to those who are less fortunate and in poor health. I am happy to be able to do this through the KRC. If you want to be part of this volunteer effort, please contact Chew Meiyong (DID): , (HP): from 5th 11th April keppelite Baring his chest to help the less fortunate, volunteer Winson Lim combs the street for a good cause Ultimate rigs Having made its debut in the United States in December 2005, the National Geographic MegaStructures series, Ultimate Oil Rigs, is finally in Asia! A one-hour documentary, it will feature Keppel FELS and a drilling contractor, showcasing the ingenuity of man in overcoming the challenges of making and operating mammoth drilling jackup rigs. The documentary is expected to air on Thursday, 13 April 2006*. So, stay tuned and catch the world s leading designer and builder of rigs in action! keppelite *Please note that the airtime is subject to change. Log on to for updated details.

31 Team 31 Appreciating long-serving staff The management from KIE, (seated from left) Mr Wong Khai Theen, Mr Wong Boon Kong, Chairman of KIE and Mr Soh Chee Keong, Senior GM (Singapore Operations), with recipients of the 40-Year Long Service Award, (from left) Mr Chang Wai Thim, Mr Chee Mun Tuck, Mr Koh Ah Ang and Mr Shanmugam Supramaniam Keppel Integrated Engineering (KIE) held a Long Service Award ceremony on 3 March 2006 to recognise the dedication and commitment of long-serving employees from KIE, Keppel FMO, Keppel Seghers and Keppel Prince Engineering. Mr Wong Khai Theen, Senior General Manager (Special Projects) of KIE said, Today, our group-wide staff strength is 2500, and KIE would not be what it is today without its people. I hope that these exemplary Keppelites will inspire the rest of us to continue their good work with the company. Together, the 49 recipients have 770 years of working experience between them. Said Shanmugam Supramaniam of Keppel FMO, who is one of the four deserving Keppelites who received the 40-Year Long Service Award, Once you re happy with your job and your management takes care of you, you can stay in the job for many years. keppelite Committed to the local community In Luo Yuan County, a rural community in Fujian Province of China, underprivileged children trudge at least four hours to and fro everyday on their tired feet to get to school. This is because the schools are located only in the cities, while the children of Luo Yuan live in the mountainous region, deep in the villages. To exacerbate the problem, in this impoverished, coastal community where fish and land farming is the main livelihood, and where natural disasters ravage and destroy homes, most families simply cannot afford sending their children to school. Financial difficulties plus the distance often put these children at risk of dropping out of school prematurely. Keppel Land has come to the aid of the children through the Mainly I Love Kids (MILK) Fund. Keppel Land has committed to contributing RMB 1 million to the construction of a middle school hostel for the needy children of Luo Yuan. The Chinese government will provide the land and undertake to build the first two dormitory blocks, while Keppel Land s donation will go towards building the third block. The authorities are currently working on the blueprint and construction of the hostel, scheduled to be completed within Some 1,000 students will be able to benefit from the hostel project, and continue to pursue their education. Committed to the community wherever it has operations, Keppel Land is glad to do its part to provide access to educational opportunities that open new doors to progress. keppelite

32 32 Team Welcoming new Keppelites As a conglomerate with businesses in the different sectors of Offshore and Marine, Property and Infrastructure, Keppel offers its people exciting career and personal growth opportunities across the Group. At a Group-wide Orientation organised by Group Human Resource on 15 March 2006 at Marina Mandarin, new Keppelites were welcomed to the family with an introduction to the key operations of Keppel s strategic business units (SBUs). Sharing with the new Keppelites were key executives from the Group, including Keppel Chairman Mr Lim Chee Onn who gave the opening address. In particular, a remark by Mr Hoe Eng Hock, Executive Director of Keppel Singmarine, made a strong impression on new Keppelite Kenneth Yeo, Senior Executive (Marina at Keppel Bay project) from Keppel Land. Everyone should be given a second chance in life, Mr Hoe had shared. Knowing that senior management is focused on people development is very encouraging for Kenneth. I also feel the orientation has been very helpful in inducting us into the corporate values espoused by the Company, and giving us an opportunity to interact with our colleagues from the other units. keppelite Kepture! for the Arts At the GV Grand cinema in Great World City, Keppelites were gathered for the movie-screening of Munich organised by Kepture! on 4 March A pre-screening tea reception was held at the outdoor Garden Terrace to give Keppelites an opportunity to interact and get to know one another. The event was well organised and made going for a movie show a special occasion, as colleagues had a chance to connect outside of the workplace. The show was a good choice as it portrayed vividly the struggle between the Israelis and the Palestinians, said Lim Kian Lee, Senior Project Manager from Keppel Land. Inspired by actual events, based on a number of sources including personal recollections, and helmed by renowned director Steven Spielberg, the Academy Awards nominee drew a sell-out crowd of 175 seats. A bigger theatre had to be re-booked to cater for the overwhelming response from Keppelites who were eager to catch the political thriller. As the tickets were bundled and cheaper in bulk, it encouraged Keppelites to No popcorn? But Keppelites still enjoyed the mingling during the pre-movie reception at the Garden Terrace bring along their family and friends to enjoy the show together. Kepture! presents a series of artistic performances to entice or kepture the spirit of the arts amongst Keppelites, as well as create opportunities to mingle across the various business units on a quarterly basis. So do keep a lookout for the upcoming Acts! keppelite

33 Team 33 Keppel O&M holds inaugural corporate orientation Our Core Values are important anchors of our organisation Addressing new Keppelites at the inauguration of the Keppel O&M Corporate Orientation on 3 March 2006, Mr Choo Chiau Beng, Chairman & CEO of Keppel O&M, reiterated the importance of core values in shaping behaviours and actions. To be conducted on a monthly basis, the Keppel O&M Corporate Orientation provides an overview of the organisation s Vision, Mission, Core Values, businesses, strategic directions, Group policies and career progression. The orientation program aims to strengthen communication with new Keppelites by giving them an appreciation of the various facets of Keppel O&M. Many of the particpants expressed their appreciation in providing them a platform to interact with the Management. At the end of the orientation, they were asked to pen down the work targets they Mr SN Jayakumar, General Manager of Marketing at Keppel FELS, shared his working experience with participants at the inaugural Keppel O&M Corporate Orientation hope to achieve in the next six months in a Dear Me postcard. At the end of the six months, the selfaddressed postcard will be posted back to them for reflection and to take stock of their set targets and achievements. keppelite Tackling the bird flu Avian influenza A/H5N1, also known as bird flu, is a disease that kills domestic poultry flocks. The outbreak began in several South East Asian countries and has spread into Russia, Europe and Africa. Huge numbers of chickens, ducks, geese, and other domestic birds have been culled in affected countries in an attempt to slow or stop the spread of the virus. The virus is contained in the excrement of infected birds, and most people who have contracted bird flu work with or live near poultry. Symptoms range from cough, fever, sore throat and muscle aches to eye infections, pneumonia and other complications. At this time, the virus does not have the ability to spread easily from human to human. PRECAUTIONARY MEASURES 1. Avoid live animal markets, poultry and pig farms. 2. Do not handle sick or dead birds. 3. Avoid handling any sick animals, including cats. 4. Avoid touching any surfaces that may be contaminated by poultry droppings, and do not swim in any body of water that is used by birds. 5. Maintain high levels of personal hygiene. Frequent washing of hands is very important. Wash your hands before and after food preparation. 6. Poultry and pork products and eggs must be thoroughly cooked before eating. Do not consume raw poultry products, such as raw duck blood. 7. Consider having a seasonal influenza vaccination. Although this will not protect you against avian flu, it reduces the risk of seasonal influenza. Thus, it reduces the chance of becoming co-infected with both seasonal and avian influenza; such coinfection could result in a pandemic strain of flu. keppelite

34 34 Community People Keppelites Abroad What s brewing in Belgium? Leren is zoeken naar vooruitgang. That s a Flemish wisesaying meaning To learn is to look for progress, a credo much embraced by 30-year old Koh Khai Yang, Financial Controller of Keppel Seghers Belgium. In September 2004, barely a year after he was married, Khai Yang was offered the chance to be posted to Belgium. With firm support from his wife, Khai Yang took up the posting. In Belgium, Khai Yang soon assimilated to the Belgian way of doing things. He says, Belgians are relatively more inquisitive. They would also proactively make recommendations to enhance the decisions wherever relevant. Taking charge of Keppel Seghers Europe and the Americas has allowed me to be exposed to the working styles, attitudes and cultures of staff in these regions. The work has also exposed me to the various accounting and tax regimes of these countries, says Khai Yang. As the demand for environmental services and solutions grows around the world, Khai Yang finds it especially exciting to be a member of one of the world s leading environmental engineering companies. He says, Today, more and more countries realise that it makes economic sense to implement stricter environmental regulations. This creates tremendous opportunities for Keppel Seghers. We are currently putting the building blocks for growth in place and to position ourselves when global demand picks up. Khai Yang, who has a one-month old daughter, still remembers those days when he first became dad. I had to return to Belgium two weeks after my baby was born. It was definitely a painful experience. What my wife and I did to alleviate the pain was to have daily web-cam conversations. The time-zone difference didn t help, he recalls. In his spare time, Khai Yang likes to drive around in Europe, a refreshing experience not available in Singapore. He recently drove 10 hours to the Alps in Germany. A beer-lover, Khai Yang also finds it a joy to be able to savour the Khai Yang with wife Kai Shin in Madrid, Spain, where Keppel Seghers has a presence 300 different types of beers from the local breweries. As Keppel Seghers Belgium is located within the Flemish speaking region of Belgium, Khai Yang has taken up learning the Flemish language, the official working language. He explains, Flemish is the mother tongue of most colleagues. Official documents are also in Flemish. Learning their language will allow me to get to know the Belgian culture better. Reflecting on his life in Belgium so far, Khai Yang says, As the Flemish saying goes, Achter elk probleem schuilt een nieuwe kans, behind every challenge lies a new opportunity. I am certainly glad to have taken up the posting in Belgium. It has broadened my mind, helped me gained new perspectives, and exposed me to different cultures. Of course, I also enjoy Belgium s world-renowned beer and chocolate! keppelite

35 Community 35 volunteers Keppel Equipping volunteers to make the difference What do you do when an intellectually challenged child greets you with a hug? Respond with a hug? Wrong. Keppel Volunteers recently organised a workshop for members to learn the proper way of interacting with the children from the Association for Persons with Special Needs (APSN), Keppel Group s adopted charity. Sharing with the group of volunteers at the workshop was Fredrick Low, a social worker with APSN. He said, We encourage volunteers not to reciprocate the hug because we do not want these children to grow up thinking that it is alright to hug someone they just met. We have to teach them that the proper way to greet an acquaintance is to shake hands. Enthusiastically, the volunteers raised questions during the workshop. One of the questions raised was, How should one treat the children when interacting with them? At the workshop, Keppel volunteers learn to handle issues when interacting with the children of APSN Frederick responded, Treat them like how you would treat any child or person, with care, concern and respect. What we aim to achieve for them is to be treated like any normal person. Said Ms Ang Boon Yen from SPC, The workshop helped me understand more about APSN and the children we interact with. It also equipped me with a better knowledge of handling the different situations with each child. They may appear normal and come from a normal family, but each child has his own set of challenges. I really admire the teachers who are there to guide them through their daily routines. Agreeing, Ms Celine Chen, also from SPC said, When I interact with these children, at times I am uncertain of the answers to give to their questions. Sometimes they ask why they are different or would they become normal like the rest of us in future? If a child tells me that he would like to become a policeman when he grows up, what should be an appropriate response? On one hand, I would like to encourage him to work hard; on the other, I do not wish to give false hope. So through these workshops, I learn how to handle and communicate with these special children better. keppelite

36 36 BackPage Alpha raises $720 million exceeding fund target Keppel Land Limited s wholly-owned real estate fund management arm, Alpha Investment Partners Ltd (Alpha), has announced the final closing of its Alpha Core Plus Real Estate Fund. The Fund has raised a total of S$720 million which exceeded its original target of S$412 million. With gearing, the Fund will eventually reach a total asset size of S$1.8 billion when it is fully invested. The total investor commitments raised by Alpha have now reached S$1.6 billion. When they are fully invested on a general basis, Alpha will have a total asset under management (AUM) of S$4.4 billon. Alpha s first fund, Asia No 1 Property Fund, jointly managed with Henderson Global Investors, is now more than 85% invested or committed. Some divestments have already been made in that opportunistic fund, and capital and profit distributions were made to the investors in Alpha also announced that it has recently secured a mandate from a Middle Eastern investor to asset manage an existing portfolio in Asia valued at S$250 million. The mandate calls for the portfolio to be expanded to S$500 million by end-2007 and has a target of reaching an eventual asset size of S$1.65 billion. This portfolio will be managed according to Islamic principles. Mr Kevin Wong, Managing Director of Keppel Land said, The closing of the Core Plus Fund and the new Islamic mandate bear testimony to the confidence that institutional investors have in the Alpha team. The achievement further boosts the significance of fee-based businesses for Keppel Land. Thus far, Alpha s funds have all exceeded investors expectations. Alpha s Real Estate Securities Fund, for instance, which invests in listed real estate securities with a target return of 12% p.a., has over a twoyear period since its inception in February 2004 achieved a return of 32% p.a. Besides outperforming the market indices on an absolute basis, this fund has also produced the return Vanguard is one of Alpha s acquisitions in Tokyo, Japan with lower volatility, a common measure for risk. Mr Loh Chin Hua, Managing Director of Alpha said, In today s market, raising funds is just the start. The key is to be able to invest the monies in a prudent fashion and meet the fund s target returns. We are pleased to have exceeded our investors expectations and are committed to ensuring our funds continue to meet, or better, exceed their targets. The Alpha Core Plus Fund, started in March 2005, aims to invest in institutional grade, income-producing properties in the developed markets of Asia. Since its first closing, the Fund has purchased three assets in Tokyo and one asset in Singapore. The latest acquisition, completed in January 2006, was a retail building in the prime Ginza district of Tokyo. Earlier acquisitions included a luxury residential block in the swanky part of Roponggi, overlooking the Mid Town Project a prime urban landmark redevelopment by Mitsui Fudosan. In addition to the two funds, Alpha also manages a fund investing in listed REITS and securities globally. Alpha currently operates from three offices in Singapore, Seoul and Tokyo. keppelite