email marketing: segmentation

MICA (P) 072/01/2011

eppel

Keppel Group Newsletter

OCtOber 2011www.kepcorp.com/ekeppelite

KeppeliteRobust earnings 4

Platinum deal 15

Building talents 38

Strengthening Vietnam ties

Keppelite I October 2011

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 098632. Printed by Image Printers Pte Ltd, Blk 1002, Redhill Industrial Estate, Jalan Bukit Merah, #03-12, Singapore 159456.

Editorial AdvisorWang Look Fung

EditorsGrace Chia and Joycelyn Tay

Editorial CommitteeAng Lai Lee, Casiopia Low, Chan Suan Sim, Christie Lai, Doreen Lim, Chua Ying Ying, Diana Chan, Donald Sng, Eileen Tan, Elena Ong, Elizabeth Widjaja, Eva Ho, Frances Teh, Hoo Yao Lin, Lee Wan Jun, Lim Kah Ai, Maria Magdalena, Mohamed Yusof Mohamed, Ong Tze Haung, Roy Tan, Serena Toh, Sue Ann Huang, Teri Liew, Wong Chai Yueh, Woon Pek Yong, Vett Ramos, Yeo Wan Xin, Yolanda Guo

Contents

CO REG NO: 196800351N

eppel

SUSTAINING GROWTHRobust earnings 4

Focused on delivering value 7

Fortifying core competencies 10

Creditable performance 12

Seizing opportunities 13

Steady growth 14

Platinum deal 15

On the green track 16

Expanding networks

New conversion projects 17

Strengthening ties with Vietnam 18

Port of call 20

New CFO for Keppel 21

Growing partnerships in Brazil

Energy perspectives 22

Top view 24

SPeCIAl FOCUSSustaining excellence 26

Chinese connection 28

First influx of businesses 29

Study exchange

Deepening global ties 30

In depth discussions 31

Showcasing Keppel in Brunei

42

18

Triple joy in Nantong 32

On-track delivery 33

One in safety 34

Crisis ready

Building bridges 35

Bay happenings

eMPOWeRING lIVeSLearning from leaders 36

Distinguished Patron of the Arts 37

Building talents 38

One team, one vision 40

Walk-n-Fun for the Keppel family 41

The competition heats up 42

Beating the odds 44

Racing into the night 45

Herd instinct

Scaling great heights 46

Keppelites AbroadQatar living 47

NURTURING COMMUNITIeSDoing good 48

Chords of friendship 49

Care for the community 50

Keppel VolunteersActive giving 51

BACK PAGePremium newbuilds for Ensco and Safin 52

33

Cover image: H.E. Truong Tan Sang, President of Socialist Republic of Vietnam (second from left), extended his congratulations on the development of SSDT PV Drilling V to Mr Pham Tien Dung, CEO of PV Drilling (extreme left); in the presence of Mr Khaw Boon Wan, Singapore’s Minister for National Development (third from left); Mr Tong Chong Heong, CEO of Keppel O&M (fourth from left); Mr Choo Chiau Beng, CEO of Keppel Corporation (second from right); and Mr Do Van Hau, President & CEO of PetroVietnam (extreme right)


editorial


Maintaining our strong steer

In his maiden speech recently, Singapore President Tony Tan said that despite facing a volatile global economy beset by the Eurozone debt crisis and a sluggish US economy, Singapore has a “well-diversified, financially sound and competitive economy that will help see us through tough times.”

These qualities also reflect Keppel. Our sterling 3Q 2011 results bear testament to our strong financials, our strategy of diversified businesses and most importantly, our competitive value.

We have done remarkably well so far this year, particularly with our offshore and marine division securing some $8.7 billion worth of new orders. However, as our CEO, Mr Choo Chiau Beng, emphasised, “Our priority is to execute our orders well, on-time and on-budget, to extract good value from each project.”

At Keppel Offshore & Marine, this will be put to the test as we gear up to deliver a record 21 rigs in 2013. Our previous record of deliveries in a year was 13 in 2009.

To go the distance, we need to fast track our work processes, pump up productivity, push the frontiers of technology, continually upgrade the skill sets of our people, belt up on risks and vigilantly police safety.

Already, improved construction methodologies have accelerated the processes of rig building and significantly expanded our capacity to do more with increasing speed.

Planning the route before a journey is always quicker than navigating while on the move. With the use of advanced software programmes in the design and engineering of rigs, we are able to put this into practice as we build the rig through 3D virtual programmes and minimise errors encountered during actual construction.

With rapid changes in technology, it is necessary to stay abreast of relevant technologies that can speed up or revolutionise our operations.

Advanced technology requires skilled personnel to extract the maximum out of it. Training and development is instrumental in upgrading the competencies of our people and moulding leadership potential. In-house programmes conducted through our own Keppel College and the Keppel Safety Training Centre empower our people to be the engine of the company’s further growth.

To continue on this track, our people must rise to the challenge of constantly streamlining their work by leveraging technology and through constant innovation. We must utilise feedback channels and productivity campaigns to encourage a constant flow of ideas that are channeled in the right direction.

Such initiatives should be introduced at all levels of the company, from subcontractors to senior management, and at all departments, from accounting to production. Successful ideas can then be shared and implemented across the Group. These should include all our overseas units so we are pulling in the same direction.

As we move up the gears and increase our momentum, we must remain focused on the safest and most effective route to get there. We must methodically check our blind spots and be aware of external conditions. Fluctuating exchange rates, natural disasters, unpredictable political situations have the potential to derail us.

But our collective experience and Can-Do! spirit will help us navigate through an increasingly complex and uncertain global environment and continue to focus on delivering value to our shareholders.

4 Sustaining Growth


4 Sustaining Growth

NeT PROFIT By SeGMeNTS

S$m 9M 2011 % 9M2010 % % Change

Offshore & Marine 815 74 694 73 17

Infrastructure 88 8 54 6 63

Property 169 15 192* 20 (12)

Investments 30 3 15 1 100

Total 1,102 100 955* 100 15

* Financials were restated.

Keppel Group has once again delivered creditable results with net profit surpassing the billion dollar mark for the first nine months of 2011 to reach $1.1 billion, 15% above the corresponding period in 2010. Earnings per share for the same period was also 14% higher at 62 cents, while annualised return on equity stood at 20.8%. Economic value added of $770 million was $33 million above the corresponding period in 2010.

G r o u p r e v e n u e o f $2,702 million for 3Q 2011 was 18% than the same quarter in 2010. This was

robust earningsmainly due to higher revenue from the Offshore & Marine, Infrastructure and Property divisions. The Group achieved a net profit of $406 million for the quarter, representing a 33% increase over the corresponding quarter in

2010 due to higher profits from the Offshore & Marine and Property divisions.

Meanwhile, Group revenue of $7,278 million for the nine months to-date was 4% above the corresponding

period in 2010. Revenue from the Offshore & Marine division of $4,160 million was 5% lower due to lower volume of work. The division completed and delivered eight rigs, seven specialised ve s se l s , s i x FPSO/FSO

Keppel Offshore & Marine is well positioned to seize opportunities from increasing exploration and production activities


Sustaining Growth 5

conversions, one drillship outfitting, as well as several rig upgrades and repairs.

R e v e n u e f r o m t h e In f ras t ructure d iv i s ion i nc rea sed by 25% to $2,208 mil l ion. Higher revenue from the cogen power plant in Singapore was partly offset by lower revenue from Keppel Integrated Engineering (KIE).

The P rope r t y d i v i s i on recorded revenue of $866 million, which was 3% above the corresponding period in the previous year. Higher revenue was reported by Singapore trading projects, such as Reflections at Keppel Bay, The Lakefront Residences and Madison Residences due to higher sales and percentage of physical completion achieved.

At the pre-tax level, Group profit of $1,541 million was 10% higher than that of the corresponding period in 2010. The Offshore & Marine division reported a higher pre-tax profit of $1,059 million, an increase of 20% as compared to the previous year. Profit from the Infrastructure division i nc rea sed by 42% to $108 million as a result of better performance from Keppel Energy, partly offset by lower contribution from KIE.

Profit from the Property division decreased from $423 million to $334 million mainly due to lower share With the expansion of the Keppel Merlimau Cogen plant, Keppel Energy will be able to meet the increasing demand for energy

of profit from associated companies. Marina Bay Residences in Singapore and some phases of The Botanica development in

Chengdu, China, were completed in the first nine months of 2010 resulting in the higher share of profit for associated companies for

the previous year. Profit from the Investments division was higher mainly due to disposal of investments.

Continues on page 6...

6 Sustaining Growth


After taking into account income tax expenses and non-controlling interests, net prof i t at t r ibutable t o s h a r e h o l d e r s w a s $1,102 million. Offshore & Marine remained the largest contributor to net profit with 74%, followed by Property with 15%, Infrastructure with 8% and Investments with 3%.

STRONG GROWTH PROSPeCTSOffshore & Marine division secured $8.7 bi l l ion of orders year-to-date. The net orderbook stood at $9 billion as at 30 September 2011 with deliveries into 2014.

The division continues to see good prospects for its deepwater solutions with

the projected increase i n d e e p w a t e r c a p i t a l expenditure for the next few years. The division will continue to focus on innovation, productivity and safety, which will place it in a good position to participate in the expected increase in demand.

In I n f r a s t ruc tu re , the expansion of the Keppel Merlimau Cogen plant from 500MW to 1,300MW is on schedule. KIE is progressing with the execution of its Engineering, Procurement and Construction contracts in Qatar and the UK. With the expected growth in demand for logistics solutions and data centres in Asia, the Group will focus on providing integrated logistics solutions

in selected markets and building up a portfolio of high quality data centres.

The ser ies of property market cooling measures rolled out in Singapore have moderated demand and growth in residential prices but the Group continues to see interest in its projects in Singapore. Home sales have moderated in most overseas markets from the property cooling measures but demand for the Group’s quality homes remains.

Keppel Land China has acquired a prime lakefront residential site in Wuxi for the development of about 2,500 apartments, which includes commercial components. Interests in

The domestic waste project in Qatar will now provide steady, recurring income stream to KIE through the operation and maintenance of the plant

Ocean Financial Centre and Marina Bay Financial Centre Phase 2 remain healthy but office rentals in Singapore are expected to moderate.

With continued uncertainty over the Eurozone sovereign debt situation and weak US economic data, there remains volatility in the global economy.

Amidst this environment, the Group will continue to fortify our collective strengths and capabilities among the divisions, and enhance sustainable growth in our various businesses. keppelite

...continued from page 5.


Sustaining Growth 7

CHAlleNGING lANDSCAPeThe outlook for the global e conomy has become increasingly unclear over the past quarter. Growth in the US has weakened with data that has not been encouraging. In Europe, the sovereign debt crisis continues to deepen with the delays over bail-out plans for its troubled banks and mounting uncertainty ove r the l onge r t e rm

Focused on delivering valueAt Keppel Corporation’s third quarter and nine months 2011 results webcast, CeO Mr Choo Chiau beng highlighted the current economic climate, business outlook as well as opportunities.

stability and sustainability of the Eurozone.

Against the worsening outlook in Europe and the US, Asia is still seen as a bright spot. Emerging As ia cont inues to see some growth. The Chinese economy is projecting slower growth of 9.4% this year from 10.4% last year, as the Chinese government grapples with inflation. China’s property cooling Continues on page 8...

measures have started to bite as prices and transactions have declined.

In Singapore, lower growth is expected for the next few years. Oil prices have continued to soften, but have remained above US$85 and US$105 a barrel for West Texas Intermediate (WTI) respecitvely.

BUSINeSS OUTlOOKAmidst this complex and

rapidly changing external environment, Keppel will continue to capture value in its key businesses.

Offshore & MarineOur Offshore & Marine bu s i ne s s ha s s e cu red $8.7 billion of new orders to-date. This is a new record for Keppel and we are happy that customers continue to entrust us with their projects.

Keppel is committed to executing all orders well to extract value from each project

8 Sustaining Growth


Our priority is to execute our orders well, on-time and on-budget, as well as extract good value from each project.

With sharpened concerns over nuclear safety arising from the disaster in Japan and Germany’s turning away from nuclear energy, g lobal demand for o i l and gas is expected to continue to grow.

Drilling in the North Sea has been revitalised by new major oil finds, and the Gulf of Mexico is returning gradually to normalcy with the issuance of permits. Coupled with little spare

production capacity, industry analysts have projected that spending on exploration and production will rise in the coming years. At Keppel, we will leverage our track record of offering premier so lut ions and de l i very excellence to carve out value from these trends.

There have been continuing d e v e l o p m e n t s i n t h e Petrobras 21-rig tender earlier this month. With our good delivery track record from a well-established offshore yard in Brazil, we hope to secure a fair share of the orders when the tender is awarded through Sete Brasil.

InfrastructureIn Infrastructure, Keppel Integrated Engineering (KIE) has handed over the domestic waste project in Qatar to our clients and we are now in the operational and maintenance phase which will provide a steady recurring income stream. KIE will continue to focus on completing its existing projects in Qatar and the UK.

In China, KIE’s subsidiary, Keppel District Heating & Cooling Systems (Keppel DHCS), expects its plant in the Tianjin Eco-City to commence operations next year. Keppel DHCS will continue to seek opportunities to provide its

energy-efficient solutions in China and the broader region, as well as to strengthen its presence as the largest cooling systems provider in Singapore.

In our energy business, Keppe l Energy ’s good earnings momentum in the last quarter is expected to be sustained for the rest of the year.

Keppel Telecommunications & Transportation (Keppel T&T) has also been steadily growing its logistics business in Singapore, China and Vietnam. Its stake in a port project along the Yangtze River in Wuhu city is the first

Harnessing synergy across the Group, the proposed deal on Ocean Financial Centre will benefit both Keppel Land and K-REIT Asia

...continued from page 7.


Sustaining Growth 9

step in growing Keppel T&T’s presence in the business of integrated port logistics beyond Southern China. Keppel T&T is also on the lookout to invest in good data centre assets.

PropertyThe cooling measures by the governments in Singapore and Ch ina a re tak ing effect and have dampened sentiments. Good projects continue to be well received albeit at a slower pace. In th i s pas t qua r te r, we launched a new suburban project in Singapore and a new phase of our township in Chengdu, China. Both were well-received.

In August, Keppel Land China acquired a prime waterfront site in Wuxi city to develop residential and small office/home office (SOHO) units. Keppel Land will continue to seize opportunity to secure good sites for residential developments and grow its commercial portfolio.

We continue to believe in the fundamentals of demand from Asia’s growing middle-class for homes and will maintain our position to catch this wave of growth.

We also announced the proposed sale of Keppel Land’s stake in the Ocean Financial Centre to K-REIT Asia for a period of 99 years (see page 15). This is a win-win transaction for both Keppel Land and K-REIT Asia.

Pending the approval by m inor i t y sha reho lde r s and unitholders of the two companies, Keppel Land will see a net gain of $492.7 million, while K -RE IT As i a ’s s t e r l i ng portfolio would be boosted to nearly $6 bi l l ion of Grade A pr ime off i ce buildings, making it one of the largest office REITs in Singapore. This deal will be earn ings accret i ve for K-REIT Asia.

BUIlDING BeNCH STReNGTHSK e p p e l p l a c e s g r e a t impor tance on t a l en t management and succession planning. Through deploying talents optimally within and across our three core businesses, we groom our younger leaders to ensure sustainable growth for the Group.

In this regard, I am happy to announce that we will be appointing Mr Loh Chin Hua as the CFO of Keppel Corporation with effect from 1 January 2012 (see page 21). Over the past nine years, Chin Hua has done well in growing Alpha Investment Partners, Keppel Land’s real estate fund management arm. We are pleased to welcome him to this new role in Keppel Corporation.

Mr Teo Soon Hoe will be relinquishing his role as Group Finance Director, and will serve as Senior ED as well as remain on the Keppel Corporation Board.

He will remain as Chairman of Keppel T&T and M1. He will also assist me to grow our competencies in the business of Sustainable Development as well as

oversee direct investments and special projects like the Tianjin Eco-City and K-Green Trust.

DelIVeRING VAlUe2011 has been an eventful and volatile year thus far. Our good performance for the first nine months of this year is testament to the Group’s sound business strategies and prudent management of our resources. Our experience in past crises stand us in good stead as we navigate an increasingly complex and uncertain global environment and focus on delivering value to our shareholders. keppelite

Keppel T&T will develop a port along the Yangtze River in Wuhu city of China

10 Sustaining Growth


HeAlTHy CASH FlOWSH i g h e r n e t c a s h o f $349 m i l l i on u sed i n operating activities was ma in l y due to h igher working capital arising from the acquisition of land by our Property division.

The Group spent $1 billion on acquisitions and capital expenditure. This included redevelopment cost of Ocean Financial Centre, acquisition of additional levels at Prudential Tower, e x p a n s i o n o f K e p p e l Merlimau Cogen plant, as well as further investment in associated companies and other operational capex.

After taking into account d i v i dend i n come and

Fortifying core competencies Amidst changing market conditions, the Group continues to build on its strong fundamentals to create greater value for its shareholders. Keppel Corporation’s Senior eD and Group Finance Director Mr teo Soon Hoe shares the Group’s approach.

divestment proceeds of $242 million, net cash used in investing activities was $0.8 billion. The resultant cash outflow was $1.2 billion for the first nine months of 2011.

BUSINeSS ReVIeW

Offshore & Marine The prospects for the Offshore & Marine industry continue to remain positive as we anticipate strong growth in Exploration & Production (E&P) spending over the next two years. With our track record of delivery excellence, our Offshore & Marine division expects to benefit from this projected rise in E&P spending.

O u r o r d e r b o o k w a s b o o s t e d b y a b o u t $1.3 billion of contracts in 3Q 2011. The steady flow of new orders brought our net o rderbook to $9 b i l l i on a s a t end-September 2011 wi th deliveries into 2014. The div is ion also continues to demonstrate strong project management and execution with on-time, on budget deliveries.

Infrastructure The 800MW expansion of Keppel Merlimau Cogen plant is on track to be completed in 2013. This will be a significant milestone in Keppel Energy’s growth strategy, enabling it to better capture value from

the evolving energy market in Singapore.

For Keppe l In tegrated Engineer ing (K IE ) , the handover of the completed Domest i c So l id Waste Management Centre in Qatar marks the start of the operational and maintenance phase of the project, which will provide a steady recurring stream of income.

In China, the construction of KIE’s District Heating & Cooling Systems plant in Tianjin is making progress, marking the division’s first inroad overseas.

With the acquisition of the other 50% stake in T r a n s w a r e , K e p p e l

Keppel continues to report sustained growth with strong financial performance


Sustaining Growth 11

Te lecommunicat ions & Transportation (Keppel T&T) has expanded its warehousing space to tap the increasing demand for logistics services in Singapore.

To further enhance i ts logistics footprint outside of Singapore, Keppel T&T has also entered into its first port project along Yangtze River, a major trade route in China.

in China and uncertainty in the financial markets. Despite the conditions, there continues to be demand for the Group’s quality homes. In China, for instance, the recent launch of Phase 6 of The Botanica in Chengdu saw a healthy take-up rate.

Keppel Land and K-REIT Asia have announced the proposed sale of Keppel Land’s stake in the Ocean Financial Centre to K-REIT Asia for a period of 99 years.

Both Keppel Land and K-REIT Asia will benefit from this proposed sale. Pending the approval by the respective shareholders and unitholders, Keppel Land will realise a net gain from the sale, while K-REIT Asia will boost its AUM significantly by around 900,000 sq ft of net lettable prime office space in Singapore.

GROUP OUTlOOK W ith the vo la t i l i t y in the global markets, it is imperative that we stay focused on strengthening our core competencies. The continued growth of the Group hinge on our ability to remain nimble and responsive to the changing market conditions. keppelite

Keppel Land’s latest residential development in Singapore, The Luxurie, has achieved positive response

PropertyTo grow its portfolio, Keppel Land China has recently secured a prime residential site in Wuxi. This is its fourth project in Wuxi. Keppel Land aims to draw genuine homebuyers seeking well-designed and managed residential estates.

Alpha increased its assets under management (AUM) to $8.8 billion with the

first closing of the Alpha Asia Macro Trends Fund II. To explore the growth opportunities in China, Alpha also established an office in Shanghai.

Keppel Land achieved a good take-up for The Luxurie, its latest residential development in Singapore. Overseas, home sales have moderated due to the property cooling measures implemented



ON OFFSHORe & MARINe PROSPeCTSCCB: In this quarter, we have started recognising the revenue of two jackups that were secured in 4Q 2010. We have received enquiries on semisubmersibles but so far these have yet to translate into firm orders.

We will compete for any j ob tha t makes good business sense. We are not sure that we will win every single job, especially if others are hungrier and are willing to practically give away their rigs. That is not our business. Our business is to create value for our shareholders.

If we win the Petrobras orders, we do not have to build a new yard, but we will have to spend some money on our existing yard to cope with the work.

TCH: We h a v e t h re e outstanding rig options from rig operators and enquiries continue to be as active as three months ago. We are also anxiously awaiting the Petrobras orders.

ON OFFSHORe & MARINe MARGINSTCH: The higher margins were due to improvements in operations, and because we completed some rigs that

Creditable performanceKeppelite highlights the questions and answers fielded at the third quarter and nine months results webcast.

were ordered at better prices during the last cycle.

CCB: Prices of the current slate of contracts are lower than those obtained at the peak of the previous cycle. As such, we do not expect the 20% plus margins to be maintained.

ON INFRASTRUCTUReCCB: The main contributor to Infrastructure’s net profit is the good performance from our energy business.

OTG: Keppe l Ene rgy ’s contributions have been very consistent for the past few quarters. The performance has been and will continue to be strong.

ON DIVeSTMeNT OF OCeAN FINANCIAl CeNTRe TSH: Keppel Corporation will not gain from Keppel Land’s divestment of Ocean Financial Centre to K-REIT Asia, as K-REIT Asia is a subsidiary of the Keppel Group. There will be elimination at the Group level and fair value adjustments to the property.

CCB: Keppel Land will gain while the impact on Keppel Corporation will be neutral.

ON CReDIT MARKeT SITUATIONCCB: Our Offshore & Marine

customers have no problem pay ing whateve r tha t is due.

TSH: We have not felt the impact of the credit crunch in our rigbuilding business.

ON DIVIDeND PAyOUTTSH: I should not think that dividend payout would be impacted by higher working capital requirements for jackup orders on backend loaded payment schedules. keppelite

A combination of factors, including gains from improved productivity, boosted margins of the Offshore & Marine division

CCB – Mr Choo Chiau Beng,

CeO of Keppel Corporation

TSH – Mr Teo Soon Hoe,

Senior eD and Group Finance

Director of

Keppel Corporation

TCH – Mr Tong Chong

Heong, Senior eD of

Keppel Corporation, CeO of

Keppel Offshore & Marine,

and Chairman of Keppel

Integrated engineering

OTG – Dr Ong Tiong Guan,

Managing Director of

Keppel energy



Keppel Land’s net profit for the first nine months ending 30 September 2011 was lower at $191.8 million against the restated net profit of $256.1 million for the same period in 2010. This was due to a lower contribution from property trading, which was partially offset by an improved showing from fund management income and a one-off divestment gain in 1Q 2011.

Net profit from property trading was also 42.3% lower at $116.5 million for the nine months. This was mainly due to the adoption of a revised accounting policy this year under which revenue and profit from overseas trading projects are recognised only on full completion. In addition, there was substantial net profit contribution from

Seizing opportunities

Keppel Land’s proposed divestment of its 87.5% interest in Ocean Properties, the owner of Ocean Financial Centre, to its associate K-REIT Asia for a period of 99 years at $1.6 billion will allow the group to unlock value and enable K-REIT Asia to enhance its regional commercial property portfolio (see page 15).

A lpha has launched a follow-on fund on the back of the well-received Alpha Asia Macro Trends Fund (AAMTF ) . The AAMTF II achieved a first closing o f ove r $556 m i l l i on committed and is making its maiden investment in Central Park Hotel in Hong Kong. To strengthen its presence in China, Alpha recently opened an office in Shanghai, widening its regional office network

spanning Singapore, Taiwan, Korea and Japan.

POSITIVe TOWNSHIP HOMe SAleSOverseas, Keppel Land sold more than 1,600 homes in the first nine months of 2011, with a take-up of almost 900 units in the third quarter. In China, buyer interest remains healthy for the group’s quality projects such as The Botanica in Chengdu, The Seasons in Shenyang and The Springdale in Shanghai. China home sales for the third quarter amounted to 780 units. In August, Keppel Land China acquired a prime 21.5-ha lakefront residential site in Wuxi, which can yield around 2,500 units, including commercial components.

In Indonesia, Jakarta Garden City sold close to 240 homes in the first nine months of this year, a 38% improvement over the same per iod last year.

The group plans to launch new developments and project phases opportunistically and will concurrently seek well-located sites in Singapore and ove r sea s fo r the development of residential, townships, commercial and mixed-use projects. keppelite

Keppel Land recorded positive overseas home sales from projects such as The Botanica in Chengdu, China

the completion of units sold under the Deferred Payment Scheme at Marina Bay Residences in Singapore for the first nine months of 2010.

Fund management income f rom K-RE IT As ia and Alpha Investment Partners (Alpha) increased 70% to $39.7 million, marking the best nine months ended September performance to-date.

STRONG GROWTH PlATFORMSKeppel Land sold about 420 homes in Singapore in the first nine months of this year. The majority of the sales came from its latest residential project in Sengkang, The Luxurie, which has received encouraging take-up of 86% of the 250 units launched in late-August.



K-REIT Asia has achieved 2 3 . 6 % i n c r e a s e i n distributable income to $77.2 million for the nine months ended September 2011 over the same period last year.

This is due to higher share of profits from One Raffles Quay Pte Ltd (ORQPL) and BFC Development Pte Ltd (BFCDPL), which owns One Raffles Quay and Marina Bay Financial Centre Towers Phase 1 respectively, as wel l as higher interest income. The share o f profits from ORQPL and BFCDPL grew by 296.4% to $25.4 million and interest income increased by 77.5% to $17.1 million.

The annualised Distribution Per Unit for the period i nc rea sed by 22% to 7.59 cents year-on-year. Meanwhile, net property income (NPI ) s tood at $43.9 million due mainly to the divestment of Keppel and GE Towers. This was offset by the NPI contributions from the 50% interest in 275 George Street in Brisbane and the office tower at 77 King Street in Sydney, as well as the four levels of strata office at Prudential Tower.

As at end-3Q 2011, K-REIT Asia’s portfolio occupancy remained healthy at about

Steady growththe share of profits from OrQPL and bFCDPL nearly tripled to $25.4 million for the nine months ended September 2011.

98%. In Singapore, its portfolio occupancy was 98.5%, higher than the core CBD occupancy rate of 92.3%.

STABle OFFICe MARKeTSOffice rentals in Singapore showed resilience despite the increase in supply of new and better quality space. Rentals for Grade A office climbed 4.3% to $11.06 psf per month in 3Q 2011. Rental rates are expected to remain stable vis-à-vis the expected demand and supply of office space.

The Australian economy is estimated to grow at 2% in 2011, according to the Reserve Bank of Australia (RBA) which has maintained the cash rate at 4.75% to curb rising inflationary pressures.

D e s p i t e t h e b r o a d e r in f l a t iona ry economic environment, the office markets in Brisbane and Sydney remain positive. The Property Council of Australia ranked Brisbane’s office market as having the second strongest demand. According to CBRE, the average occupancy for prime office space in Brisbane was 96%, well above the national average of 93.3%.

Sydney’s CBD office market

average occupancy stood at 92.2% and CBRE expects this to rise over the next five years given that the net absorption remains positive and higher than the historical five-year average.

STRONG eNDORSeMeNTSMoody’s Investors Services has upgraded its outlook on K-REIT Asia’s Baa3 corporate rating from stable to positive. Separately, Standard & Poor’s has also assigned a ‘BBB’ long-term corporate credit rating and ‘axA’ ASEAN scale rating with a stable outlook on the REIT. According to Moody’s, the change in outlook reflects K-REIT Asia’s operating and financial resilience, as evidenced by its strong,

K-REIT Asia’s Singapore portfolio occupancy at 98.5% is higher than the core CBD occupancy rate of 92.3%

predictable cashflows and high occupancy rates over the past few years. The report added that K-REIT Asia’s track record and prudent approach towards managing its capital structure and pursuing acquisitions, after the 2008/09 economic downturn, also help maintain a solid financial profile.

Looking ahead, K-REIT Asia remains focused on active asset management, retaining existing good tenants, attracting new credit-worthy tenants and improving operational and capital efficiencies within its existing portfolio as well as continuing to exercise prudent interest rate and foreign exchange hedging policies to mitigate financial risks. keppelite



Platinum dealKeppel Land will divest its 87.5% interest in Ocean Properties, the owner of Ocean Financial Centre, to K-reIt Asia for a period of 99 years. the DPU-accretive acquisition of one of the largest and newest premium office buildings in the raffles Place and Marina bay precincts will boost K-reIt Asia’s distribution to unitholders.

Keppel Land, through its wholly-owned subsidiary, Straits Property Investments, has entered into a conditional share purchase agreement with RBC Dexia, as trustee of K-REIT Asia, for the sale of its approximate 87.5% shareholding interest in Ocean Properties to K-REIT Asia for a period of 99 years.

The agreement, negotiated on a wil l ing-buyer and willing-seller basis, has been reached at the consideration of $1,571.3 million (subject to completion and post-completion adjustments). This is based on an agreed value for the property at $2,013.1 million and includes a five-year rental support of up to $170 million. This is in line with Keppel Land’s independent valuation of $2,010 million by Colliers International; as well as K-REIT Asia’s independent valuation of $2,054 million and $2,050 mi l l ion by Savills and Knight Frank respectively.

Ocean Financial Centre, a 43-storey premium Grade A office tower, comprising about 884,957 sf of net lettable area, is about 80% leased to established corporations.

The transaction will yield for Keppel Land a net gain of about $492.7 million.

Mr Kevin Wong, Group CEO of Keppel Land, said, “This strategic move will enhance Keppel Land’s financial position to capture opportunities in a volatile market and take on more development projects in the reg ion to ach ieve higher returns.

”It will also enhance K-REIT Asia’s position as a key premier office landlord in Raffles Place and Marina Bay with an enlarged assets under management. Keppel Land will continue to grow its fund management business and also enjoy the rental income and potential capital value appreciation of Ocean Financial Centre through its interest in K-REIT Asia.”

K-REIT Asia Management, the manager of K-REIT Asia, plans to fund the acquisition with the proceeds from a proposed 17-for-20 underwritten renounceable r ights i s sue and bank borrowings. Post-acquisition, K-REIT Asia is expected to have an aggregate leverage level of 41.6%. Keppel Corporation and Keppel Land

have provided irrevocable undertakings to subscribe for their pro-rata entitlements of K-REIT Asia’s rights issue.

Ms Ng Hsueh Ling, CEO of K-REIT Asia Management, said, “We remain confident of Singapore’s fundamentals as one of Asia’s key financial centres as well as the positive outlook for the Singapore office market in the short to medium term especially for Grade A office space. The acquisition of Ocean Financial Centre, one of the best premium commercial buildings in Singapore’s business and financial district, will enhance our portfolio s ignif icantly as wel l as improve our distribution per unit to our unitholders.”

This transaction is subject to and conditional upon among others, the approval of the minority shareholders of Keppel Land and that of the minority unitholders of K-REIT Asia at the respective EGMs on 10 November 2011; as well as from the relevant authorities. The transaction is expected to be completed no later than 31 December 2011. keppelite

Ocean Financial Centre



Keppel Telecommunications & Transportation (Keppel T & T ) r e p o r t e d a n e t profit of $35.6 mil l ion for 3Q 2011, a 126.7% jump compared to the c o r r e s p o n d i n g 2 0 1 0 period. This was boosted by exceptional gains, largely from the disposal of an associated company, Wuhu Annto Logistics.

expanding networks

Revenue for the first nine months of 2011 improved 7% to $86.7 million from the corresponding period last year, while earnings per share after exceptional i t e m s g r e w 6 1 % t o 12.2 cents.

Keppel T&T’s 9M 2011 net profit after exceptional i t ems a t t r i bu tab l e t o

shareholders also rose 59% to $67.2 million.

Looking ahead, Keppel T&T wil l work towards maintaining high warehouse occupancy in China and South East Asia. It will also expand its logistics business with the completion of a new warehouse in China and the redevelopment

K-Green Trust (KGT), Keppel’s ‘ g reen ’ i n f r a s t ruc tu re business trust, has delivered a steady set of results for the 3Q and nine months e n d e d 3 0 S e p t e m b e r 2011. The trust recorded 9M 2011 net profits of $11.7 million, 14.6% more than projected.

KGT’s profit after tax for 3Q 2011 was $3.8 million,

On the green trackand earnings per unit stood at 0.60 cents.

Its revenue for the nine-month period was $68.7 million, which was 19.5% higher t h a n p r o j e c t e d . T h e contributions were due to a higher recognition of construction revenue from the Senoko Waste-to-Energy plant, as well as higher operation and maintenance

income from the Ulu Pandan NEWater plant.

KGT’s receipts come largely from fixed capacity payments that offer a stable source o f i n come w i th l i t t l e correlation to economic or demographic fluctuations.

Keppe l I n f r a s t r u c tu re Fund Management, the Trustee-Manager for KGT,

wil l continue to review acquisition opportunities, including assets which were identified under the Rights of First Refusal. This includes three district cooling plants in Singapore’s Biopolis@ one-north, Changi Business Park and Woodlands Wafer Fab Park, as well as the Amotfors Energi Waste-to-Energy Plant based in Sweden. keppelite

of an existing warehouse in Singapore.

In addition, Keppel T&T is growing its capacity to meet the strong demand for data centre services. Its data centre fund is also stepping up efforts to search for quality data centre assets for investment in Asia Pacific, Europe and the Middle East. keppelite

Keppel T&T is expanding its logistics business in Singapore with the redevelopment of an existing warehouse


Keppel Shipyard has secured three contracts to convert a Liquefied Natural Gas (LNG) Carrier to a Floating Storage Unit (FSU), a Very Large Crude Carrier (VLCC) tanker to a Floating Storage and Offloading (FSO) unit, as well as a tanker to a Floating Production Storage and Offloading (FPSO) unit.

Mr Nelson Yeo, MD of Keppel Shipyard, said, “We are glad to have the trust and conf idence of the global industry for a range of conversion projects.

“Working closely with our customers, we will continue to enhance and extend our capabilities, and ensure safe and high quality deliveries.”

New conversion projectsThe first contract is for the fast-track conversion of the LNG carrier Tenaga Empat in to a FSU for Malaysian customer, MISC Berhad. When completed in 2Q 2012, the FSU will have storage capacity of 130,000m3 and operate in the newly-developed Melaka LNG Import Terminal.

The second contract is from Dixstone Holdings, an affiliate of the Perenco Group, which is in turn a partner of the Cameroon National Hydrocarbons Corporation, for the modification and upgrad ing of the FSO Massongo.

Work on the FSO is expected to commence at the end of

this year. Keppel Shipyard will undertake refurbishment and life extension works, fabrication and installation of the cargo offloading ba lcony and he l ideck, installation and integration o f a 14 -po in t sp read mooring system, as well as the upgrading of the accommodation facilities. The available storage capacity of the vessel will be two million barrels of oil, with four wing ballast tanks to be converted into cargo tanks.

When completed in 3Q 2012, FSO Massongo will replace both FSO Kingsway at the Rio Del Rey Basin and FSO Moudi at the Moudi field located 20 miles apart.

Keppel Shipyard’s third contract is for the conversion of the tanker Umbe into a FPSO unit for Bumi Armada. Keppel Shipyard has been entrusted with all of Bumi Armada’s conversion projects to-date; this latest FPSO contract is the seventh collaboration between the two companies.

Slated for completion in 4Q 2012, the FPSO will have a production capacity of 50,000 barrels of oil per day, and storage capacity of 580,000 barrels of oil. The FPSO has been chartered by Oil and Natural Gas Corporation for deployment in the D-1 field, which is located 200 km west of Mumbai, India. keppelite

Keppel Shipyard is Bumi Armada’s preferred partner, having undertaken all of its conversion projects to-date




Strengthening ties with Vietnam

Dr Lee Boon Yang, Chairman of Keppel Corporation (second from right); and Mr Choo Chiau Beng, CEO of Keppel Corporation (right), call on H.E. Truong Tan Sang (left), President of Socialist Republic of Vietnam

Keppel has been growing with Vietnam for more than two decades since Keppel FELS built their first jackup drilling rig, TAM DAO 1, in 1988.

W h e n H i s E x c e l l e n c y Truong Tan Sang, President of Socialist Republic of Vietnam, made his first state visit to Singapore, senior management of Keppel led by Chairman Dr Lee B o o n Ya n g t o o k t h e opportunity to call on him on 27 September 2011.

J o i n i n g D r L e e w e re Mr Choo Chiau Beng, CEO of Keppel Corporation; Mr Teo Soon Hoe, Senior ED and Group Finance Director of Keppel Corporation; Mr Tong Chong Heong, Senior ED of Keppel Corporation and CEO of Keppel Offshore & Marine (Keppel O&M); and Mr Kevin Wong, Group CEO of Keppel Land.

At the meeting, President Sang expressed del ight at developments in the friendship and cooperation between Keppel and Vietnam during past years.

President Sang also visited Keppel FELS the same day accompanied by Singapore Nat iona l Deve lopment Minister Mr Khaw Boon Wan. He was briefed on Keppe l ’s off shore and marine businesses and

introduced to Vietnam’s first semisubmersible drill ing tender PV Drilling V, which is designed and constructed by Keppel FELS for PetroVietnam Drilling & Well Services Corp (PV Drilling).

Built to Keppel’s award-winning KFELS SSDT 3600E design, the rig is well-suited for harsh environments and will be deployed on a mu l t i - y ea r cha r t e r t o PetroVietnam’s Bien Dong P e t ro l e u m O p e r a t i n g Company.

In 2009, the design was recognised by the Institution of Engineers Singapore for

its eco-friendly features, which have contributed s i g n i f i c a n t l y t o sustainable operations, as well as the safety and well-being of rig crew.

Separately, the rig was named PV Drilling V on 1 October 2011 in the presence of Mr S Iswaran, Singapore’s Min i s te r in the P r ime Minister’s Office and Second Minister for Home Affairs and Trade & Indust ry, together with Mr Le Duong Quang, Vietnam’s Vice Minister of Industry and Trade as well as Mr Chu Ngoc Anh, Vietnam’s Vice Minister of Science and Technology.

In his speech, Mr Iswaran noted that Singapore’s offshore and marine industry has earned an international reputation for quality and reliability.

“We have differentiated ourselves with the ability to offer customised solutions and handle sophisticated tu r nkey p ro jec t s w i th complex requirements. The successful delivery of the PV Drilling V exemplifies the strengths and capabilities of our marine and offshore industry,” said Mr Iswaran.

Acknowledging Singapore as one of the most important



The naming of PV Drilling V at Keppel FELS was held in the presence of Mr S Iswaran, Singapore’s Minister in the Prime Minister’s Office and Second Minister for Home Affairs and Trade & Industry (fourth from left); Mr Le Duong Quang, Vietnam’s Vice Minister of Industry and Trade (fifth from left); and Mr Chu Ngoc Anh, Vietnam’s Vice Minister of Science and Technology (sixth from left)

investing partners of Vietnam in the oil industry, Mr Quang said, “Keppel FELS has built four drilling rigs for PV Drilling. After the successes of PV Drilling I, II and III, the celebration today once again proves the efficient and equal cooperation between Keppel FELS and PV Drilling, as well as the relationship between V ietnam and Singapore in the promising oil market of Vietnam.”

Mr Pham Tien Dung, CEO of PV Drilling, said, “Vietnam has some 4.4 billion barrels in proven oil reserves and we produced some 370,000 barrels a day last year. Our vision is for Vietnam to become a major oil and gas exporter in South East

Asia, and PV Drilling V is an important step for us in achieving our goal. Keppel FELS has been a reliable partner and we look forward to leverage their expertise and experience in building technologically advanced rigs to support this growth.”

Mr Tong, said, “We are pleased to deliver another first of its kind rig to Vietnam and PV Drilling. Our award-winning KFELS SSDT design is the ideal choice to meet requirements for Vietnam’s offshore environment.

“We look forward to support PV Drilling as it expands its fleet to capture the growth of Vietnam’s oil and gas industry. Our track record

of providing solutions and consistently delivering quality products on time, within

Symbolising the friendship between Keppel and Vietnam, Mr Truong Tan Sang, President of Socialist Republic of Vietnam (second from left), presented Mr Choo Chiau Beng, CEO of Keppel Corporation (second from right), with a painting, during his visit to Keppel FELS on 27 September 2011. Looking on are Mr Pham Tien Dung, CEO of PV Drilling (extreme left); Singapore National Development Minister Khaw Boon Wan (third from left); Mr Tong Chong Heong, CEO of Keppel Offshore & Marine (centre); Mr Do Van Hau, President and CEO of PetroVietnam (third from right); and Mr Wong Kok Seng, Managing Director of Keppel FELS (extreme right)

budget and in a safe manner has stood us in good stead in our long term partnership.” keppelite



The past month saw Keppel Offshore & Marine (Keppel O&M) play host to eminent visitors from Brazil and Qatar.

lATIN CONNeCTIONSGeographical barriers are no obstacle to Keppel O&M, which has journeyed to the other side of the globe to be near its Brazilian customers. Since then, the partnership has blossomed over the years especially with the deepening of Latin-Asia relations.

Minister Leônidas Cristino, Brazil’s Minister of Ports, led

Port of calla delegation to Keppel O&M where they experienced f i rst-hand the vibrancy of Keppel’s world-class shipyard.

At the meeting, Mr Choo shared about Keppel’s long-standing relationship with Brazil which dates back to the 1970s.

Since then, Keppel has completed some 20 major projects for Brazil, including P-56, the first Floating Production Unit to be built completely in Brazil.

Keppe l ’s p roven nea r market, near customer strategy has seen Keppel’s yards deliver integrated serv ices and so lut ions across continents to its customers and markets worldwide.

The group operates two yards in Brazil – Angra dos Reis and Navegantes, Santa Catarina.

QATARI TIeSOver in Qatar, the team at Nakilat-Keppel Offshore & Marine (N-KOM) received

Her Excellency (HE) Sheikha Mayassa, daughter of the Emir of Qatar, and Her Highness Sheikha Mozah, as well as representatives of the Qatar Museum Foundation, at its yard on 3 October 2011. HE Shiekha Mayassa is the Chairperson of the Foundation.

During the yard visit, the group was briefed on its operations as well as past and ongoing projects. keppelite

Mr Choo Chiau Beng, Chairman of Keppel O&M and Non-Resident Ambassador of Singapore to Brazil (centre), briefs Brazil’s Minister of Ports, Mr Leônidas Cristino (right), with a bird’s eye view of the Keppel FELS yard



As a key partner to Brazil’s oil and gas industry for more than 30 years, Keppel Offshore & Marine (Keppel O&M) took the opportunity to connect with long-time customers and partners while making new ones at the inaugural Offshore Technology Conference (OTC) Brasil 2011 from 4 to 6 October.

OTC Bras i l showcased the latest in technica l advancements and addressed challenges and opportunities for the deep and ultra deepwater offshore sector

Growing partnerships in brazil

in Brazil and other regions. More than 400 companies f r o m 2 3 c o u n t r i e s participated with some 10,000 attendees.

With an established footprint in Brazil, Keppel management took the opportunity to extend their network with customers, partners, associates and friends at OTC Brasil

Keppel O&M and partner McDermott, through the jont-venture company FloaTEC, showcased its extensive track record and offshore solutions

for Brazil. The Keppel-hosted cocktail party was also well attended by over a hundred customers, business associates and friends. keppelite

New CFO for KeppelIn a move towards succession planning, Mr Teo Soon Hoe will relinquish his role as Group Finance Director with effect from 1 January 2012. Mr Loh Chin Hua, MD of Keppel Land’s real estate fund management arm, Alpha Investment Partners (Alpha), will be appointed as CFO with effect from 1 January 2012.

Mr Teo, 62, will continue to serve as Senior ED and remain on the Keppel Board. He will remain as Chairman on the boards of Keppel Te lecommunicat ions & Transportation and M1. He

w i l l a s s i s t K e p p e l Corpora t ion ’s CEO to s t r a t e g i s e a n d g r o w Keppel’s competencies in Sustainable Development, and ove r see Keppe l ’s investment portfolio and special projects such as the Sino-Singapore Tianjin Eco-City.

Mr Loh will be responsible for the Group’s financial f u n c t i o n s , i n c l u d i n g managing capital, finance, treasury and tax, as well as legal matters.

He will support the CEO

in the Group’s strategic business planning process and participate in all major i n ve s tment i n i t i a t i v e s and decisions, providing sound financing options and optimal structuring of major projects, apart from building and enhancing shareholder and investor relations. He will continue to se rve as Cha i rman of Alpha.

Ms Chr i s t ina Tan and Mr Desmond Tang will be appointed as MDs and Co-Heads for Alpha on 1 January 2012. keppelite

Mr Loh Chin Hua



As Singapore’s representative in ASCOPe (ASeAN Council on Petroleum), what do you see are the major impediments to the realisation of the Trans-ASeAN Gas Pipeline (TAGP) project?CCB : W i th i n c rea s ing industr ial isat ion, urban migration and an expanding middle-class, the 10-member countries in ASEAN see the need for greater energy cooperation in the region. The region is rich in energy resources. However, demand for energy in many of the member states outstrips domestic supply capabilities and requires intra-regional supply to support their growth.

E a c h o f t h e A S E A N countries is at a different stage of development of their energy markets. In the ASEAN context, Singapore’s energy market is fa ir ly l iberal ised. In contrast, other countries’ are closed markets operated by a monopoly utility. Differences in market structure, degree of liberalisation, regulatory and legal frameworks have to be surmounted in order to achieve the realisation of TAGP.

energy perspectivesthe topic on energy remains one of the top concerns in the world today. Mr Choo Chiau beng (CCb), CeO of Keppel Corporation, shared his views as part of the lead up to the Singapore International energy Week from 31 October to 4 November 2011.

B e y o n d t h e n e e d t o establish a strong regulatory basis and harmonise fiscal differences, a project of this immensity also requires s i g n i f i c a n t f i n a n c i a l resources to construct the necessary infrastructure. Each member country also has different priorities and competing projects for funding. To seek stable and reliable funding is a challenge, especial ly in these volatile times.

latin American countries are one of the world’s major energy producers as a region. As Singapore’s Non-Resident Ambassador to Brazil, what kind of international impact do you feel latin America’s new energy geopolitics will have?CCB: With their hydrocarbon discoveries, Latin American countries are now realising that oil and gas are important components of how they conduct the i r fo re ign relations.

Therefore, we see the ties between Latin America and the rest of the world growing more rap id ly. Foreign investments by Latin American companies are also

The Keppel BrasFELS shipyard in Angra dos Reis supports Brazil’s aim to boost employment and economic growth



expected to become more significant globally.

As for Brazil, its national oil company, Petrobras, is one of the largest oil companies in the world. With its extensive exploration programme, offshore operators, shipyards, equipment vendors all have to plan their programmes with Petrobras’ requirements in mind.

One such requirement is its need for local content to support its national aim to boost employment and economic growth. Realising this, Keppel has been running a yard in Brazil since 2000.

Keppel’s yard has delivered several key projects to Petrobras, complying with the latter’s requirements. We are developing another yard to support the demands for offshore oil production.

Brazil is a supplier of crude oil and transportation fuels around the world, including the US. This has enabled it to have greater economic interdependence with its neighbours and to contribute to the regional energy landscape.

As an emerging key energy player, Brazil is likely to raise its political and economic profile in the world through forums and international organisations such as the Organization of the Petroleum Exporting Countries (OPEC) and the UN Security Council. Securing the rights to host

the Olympics and World Cup is also an indicator of its growing presence on the world stage.

With the huge energy reserves in Latin America and increasing global demand, it is expected that their economies will grow. How they keep pace and assert their influence on the world stage will depend on their governance, fiscal, trade policies and international r e l a t i o n s h i p s , a m o n g others.

The ability to mine deepwater fields for new frontier energy sources outside of OPeC could help meet the challenges of rising oil prices and supply issues. As the largest rig building and marine group in the Asia-Pacific region, how do you see the future of the deepwater industry to look like in the next 10 years?CCB: Despite the turmoil in the global markets and unrest in the Middle East and North Africa, the fundamentals of the offshore and marine industry remain intact. With rapid growth in demand for energy, conventional oil and gas fields are being depleted rapidly.

Oil companies are developing new oil and gas fields in more challenging environments and deeper water depths. The long-term outlook for global deepwater exploration remains positive.

Deepwater oil production is projected to grow about five to 10 million barrels per day over the next 10 years and increased rig capacity is consequently required to meet this target.

Following the Macondo oil spill, there is also a sharper bifurcation in the demand for deepwater rigs, with operators inc reas ing ly looking at newer-generation rigs. More than half of the current floater fleet is over 25 years old and newer rigs will be required for replacement and to meet increased demand.

Keppel’s suite of proprietary d e s i g n s c a n a d d r e s s the demands for higher specifications and more capable drilling rigs to work in harsher environments.

The increase in demand for deepwater rigs is driven by Brazil, the Gulf of Mexico’s Lower Tertiary Trend and West Africa. We are also starting to see an increase in deepwater activity in Asia. In the Gulf of Mexico, deepwater drilling is gradually returning with more operators receiving permits. We expect the situation to recover over the next five years.

Numerous deepwater projects in Brazil have come onstream recently. Deepwater sources now make up approximately 90% of Brazil’s new oil and gas output. Petrobras has an extensive exploration programme and intends

to order more than 60 deepwater rigs over the next decade.

Pe t robras i s cu r rent l y tendering another 21 units that have to be built in Brazil and Keppel expects to get a fair share of these orders. Other than Petrobras, other players such as OGX are also emerging in Brazil. K e p p e l h a s a l r e a d y comp le t ed a f l oa t i ng production storage and offloading conversion project for OSX, an OGX subsidiary, and has secured a second such project from them.

Africa currently sees the most capital expenditure for deepwater projects. Oil majors like BP, ExxonMobil, Chevron and Shell have invested significantly in West African countries such as Angola, Nigeria and Ghana.

Until recently, production in Asia has been in shallow offshore fields. But there is now a growing number of deepwater projects. Demand for deepwater drilling and production units and services remains strong, and we can expect resurgence in orders for the deepwater drilling and production units in the future. keppelite



An important developmental milestone, the completion of Tower 3 makes MBFC Singapore’s largest provider of prime Grade A office space – at nearly three million sf. With the New Downtown at Marina Bay expected to provide twice the existing Grade A office space at Raffles Place, MBFC plays an integral role in supporting Singapore’s g ro w t h a s a l e a d i n g financial hub.

Senior representatives from the development’s joint venture consort ium of

top viewGuest-of-Honour Mr teo Chee Hean, Deputy Prime Minister (DPM), Coordinating Minister for National Security and Minister for Home Affairs, officiated the topping-out ceremony of Marina bay Financial Centre’s (MbFC) third and final office tower on 28 September 2011.

Keppel Land, Cheung Kong (Holdings) and Hongkong Land, as well as Tower 3 anchor tenant DBS Bank and project contractor Kajima Corporation, joined DPM Teo in a symbolic ceremony held at MBFC’s Ground Plaza. Together, they witnessed the hoisting of the final beam onto the top of Tower 3.

DPM Teo said, “With Tower 3 topped-out and Marina Bay Suites expected to achieve TOP in 2013, we are moving closer to our vision of making Marina Bay a 24/7 vibrant

Mr Kevin Wong, Group CEO of Keppel Land (left); Mr Justin Chiu, ED of Cheung Kong (second from left) and Mr Y K Pang, Chief Executive of Hongkong Land (right) presented DPM Teo Chee Hean (second from right) a commemorative coin, bearing the etching of MBFC

downtown dest inat ion where people work, live and play.

“Marina Bay’s growth, and in particular, the Marina Bay Financial Centre, will support Singapore’s development as a leading business and financial centre in Asia.”

Mr Wilson Kwong, CEO of Raff les Quay Asset Management (RQAM), said, “Today’s ceremony is especially significant as we celebrate not just the topping out of Tower 3, but also the

completion of all three prime Grade A office towers within MBFC. With its strategic location at the Marina Bay area, seamless connectivity to major transport nodes and a stellar list of local and multinational tenants, MBFC plays a vital role in advancing Singapore’s growth as a global business and financial hub.

“It is also significant that this milestone coincides with RQAM’s 10th anniversary, u n d e r s c o r i n g t h e achievements and progress



our joint venture partners have made in Singapore – a market they are strongly committed to.”

Tower 3 stands at 46 storeys a n d f e a t u r e s a b o u t 1.3 mil l ion sf of prime Grade A office space. It is also the business address of Ashurst LLP, Clifford Chance, McGraw-Hill and WongPartnership, including anchor tenant DBS.

Mr Piyush Gupta, CEO of DBS, shared, “In a little over a year, after 38 years at Shenton Way, DBS will move our Singapore headquarters to MBFC and set up our new flagship branch here. More than 4,800 of our people, mainly from various customer-facing units, will be based at MBFC from mid-2012.

“As Singapore’s biggest bank and a leading Asian bank, it is apt that DBS should anchor MBFC and cement the Marina Bay area as Singapore’s new financial centre.”

The completion of Tower 3 will add 82,500 sf of retail space spread over three levels, bringing total retail space at Marina Bay Link Mal l (MBLM) to about 176,000 sf.

Lease pre-commitments for Phase 2 of MBLM in Tower 3 stand at about 90%. It will house F&B operators new to Singapore, such as South Beauty from China, popular cuisines like Bibigo

from Korea and Veganburg, as well as DBS’ flagship retail bank and an auditorium.

The opening of the 9,000 sf NTUC Foodfare’s flagship outlet in the city centre, Food Loft, will also expand

(From left) Mr Peter Seah, Dr Lee Boon Yang, Chairman of Keppel Corporation, and Mr Teo Soon Hoe, Senior ED and Group Finance Director of Keppel Corporation, at the topping-out ceremony of MBFC

(From left) Mr Peter Seah, Chairman of DBS Group Holdings, Mr Justin Chiu, Mr Y K Pang, DPM Teo Chee Hean, Mr Kevin Wong, and Mr Teruaki Yamaguchi, Senior Executive Officer of Kajima Corporation, mark the topping-out by embedding commemorative coins onto the beam that will sit atop MBFC Tower 3

the range of dining options f o r t h e M B F C o f f i c e community.

Phase 2 of the MBFC development comprises Tower 3 and Marina Bay Suites, which are slated for

completion in 2012 and 2013 respectively. Phase 1, which comprises Towers 1 and 2, Marina Bay Residences and Phase 1 of MBLM, was completed in 2010. keppelite

26 Special Focus


Keppel Land has clinched mu l t i p l e awa rd s tha t recognises its efforts in sustainabi l i ty and best practices, product excellence, as well as green development.

leADING IN SUSTAINABIlITy Clarity and creditability in Keppel Land’s Sustainability Report 2010 were the key reasons for the company’s w in a t the S ingapore Awards for Sustainability Reporting 2011 by the Association of Chartered Cert i f ied Accountants , reflecting the company’s management approach to integrating sustainability into its operations.

Into i ts 11th year, the award ceremony which saw Keppel Land named the sole winner, took place on 14 October 2011. The annual award recognises companies for excellence in environmental, social and sustainability reporting.

According to the judges, Keppel Land’s report clearly articulated the organisation’s strategies in sustainability and supported these through the appointment of an independent third party to validate the accuracy and reliability of the information disclosed.

Group CEO Mr Kev in Wong, said, “Keppel Land

Sustaining excellence

has strategically integrated susta inabi l i ty into our bus ine s s f rom des ign through construction to completion. This is reflected in our reporting.

“We are spurred on by the knowledge that we are safeguarding the interests of our stakeholders and that we are contributing to a more sustainable future.”

Keppel Land has also been selected as a component of the Dow Jones Sustainability Indices (DJSI World Index and DJS I As i a Pac i f i c

Mr Choo Chin Teck, Director, Corporate Services and Company Secretary, of Keppel Land (right) receives the Best Sustainability Report Award 2011 from Ms Grace Fu, Senior Minister of State, Ministry of the Environment and Water Resources

Index). This is the second consecutive year that Keppel Land has been included in the DJSI Asia Pacific Index. The indices follow a best-in-class approach and include sustainability leaders from each industry on a global and regional level respectively.

Keppel Land is also the only Singapore company to be inc luded in the Sustainabil ity Yearbook 2011, which features the top 15% of companies out of 2,500 worldwide in sustainability leadership.

In the Global Real Estate Sustainability Benchmark (GRESB), Keppel Land was named the Best Performer in Asia and earned a ‘Green Star’ based on GRESB’s model of environment performance. The accolade is awarded to companies and funds which adopt an integrated organisational approach towards measurement a n d m a n a g e m e n t o f e n v i r o n m e n t a l k e y performance indicators, as well as reduction of resource consumption and innovation in measures beyond energy efficiency.

27


Keppel Land has also received three awards , namely, the Highly Commended Award, and Merit Awards in Accounting and Financial Repor t ing , a s we l l a s Corporate Governance, in Mature Markets for the Best Practices Awards 2011 by the Asia Pacific Real Estate Association.

Submissions from the region including Japan, New Zealand and India were judged in areas such as accounting and financial reporting, property valuation, real estate securities research and funds management.

PRODUCT eXCelleNCeMarina Bay Residences and Marina Bay Financial Centre Phase I have received the coveted FIABCI Singapore Property Awards 2011 in the residential (high rise) and o ff i ce ca tegor i e s respectively. Both projects wi l l part ic ipate in the international FIABCI Prix d’Excellence Awards 2012.

The award recognises projects for excellence in design aesthetics, functionality, as well as contribution to the built environment and community at large. GReeN PROPeRTIeSTenants and vis itors to 158 Cecil Street are greeted by a green wall spanning seven-storeys high. This vertical green is one of the features contributing to 158 Cecil Street’s top win at the SIA-NParks Skyrise

Greenery Awards 2011. The office building is one of the assets under the Alpha Core Plus Real Estate Fund, which is managed by Alpha Investment Partners.

Mr Goh York Lin, ED, Asset Management, of Alpha

Investment Partners, said, “We have a clear asset management objective at Alpha, that is to ensure that our tenants can be successful in their business. We also recognise that g loba l bus inesses a re increas ingly housed in

g re e n d e v e l o p m e n t s , reaping benefits not only for the environment but in corporate branding and reputation, energy savings a s w e l l a s e m p l o y e e well-being.” keppelite

Vertical gardens at 158 Cecil Street offer tenants an eco-friendly and visually stunning work environment



O v e r 4 , 0 0 0 C h i n e s e entrepreneurs from more than 30 countries gathered in Singapore for the much anticipated World Chinese Entrepreneurs Convention (WCEC).

The biennial event, founded by the Singapore Chinese Chamber of Commerce & Industry, prov ides a meaningful and unique platform to strengthen economic cooperat ion and exchanges, as well as business networking.

T h e m e d ‘ N e w G l o b a l Environment, New Chinese Enterprise, New Impetus’, the 11th WCEC, which

Chinese connectiontook p lace f rom 5 to 7 October 2011, saw robust exchange in the areas of technology, wealth management, education and urban solutions. The Keppel Group supported the event as a Diamond Sponsor.

Speaking at the opening of the conference, Singapore’s P r i m e M i n i s t e r L e e Hsien Loong highlighted the important role Chinese entrepreneurs have played in China’s modernisation and development towards becoming the second- largest economy in the wor ld w i th a GDP o f US$5 trillion.

The Group showcased its capabilities in providing urban solutions to China through its core businesses in property development, environmental engineering and logistics services.

In property, Keppel Land China was established in 2010 to capture further value from the nation’s vast and f a s t g row ing marke t . Showcasing its projects across 13 cities, Keppel Land demonstrated experience in masterplanning and developing townhips as well as prime residential developments that wil l contribute to sustainable, urban living solutions, which

are in rising demand in China.

Both Keppel Integrated Engineering and Keppel Te lecommunicat ions & Transportation showcased their expertise in providing environmental and logistics s o l u t i o n s t o C h i n a respectively.

Keppel Land also hosted a group of delegates who visited the Reflections at Keppel Bay and Marina Bay Suites show galleries, as well as Marina at Keppel Bay.

The 12th WCEC will be held in Chengdu, China, in 2013. keppelite

Dr Lee Boon Yang, Chairman of Keppel Corporation (second from left) shares with Singapore Prime Minister Mr Lee Hsien Loong (left) Keppel’s capabilities in providing sustainable urban living solutions through flagship projects such as Keppel Bay



Delegations from across China, including Liaoning and Sichuan, visited Keppel recently to renew ties.

Vice-Governor Bing Zhigang of Liaoning led a delegation to Keppel Corporation on 29 September 2011 and were hosted by Mr Teo Soon Hoe, Senior ED and Group Finance Director of Keppel Corporation, as well as senior representatives from across the Group. The delegation visited the Reflections at Keppel Bay showroom and Keppel Integrated Engineering’s Waste-to-Energy plant.

Keppel has an established presence in Liaoning with developments in Shenbei and Hunan, and an eye on new projects, particularly in Shenyang. Vice-Governor Bing affirmed the close ties between Liaoning and

Keppel, and was keen to increase the scope and scale of cooperation between the two sides.

On 10 October 2011, Mr Choo Chiau Beng, CEO of Keppel Corporation, hosted another delegation comprising chairmen of prominent Sichuan-based companies, who were on a study visit focused on innovation and enterprise management.

The de lega te s l ed by Mr Huang Shunfu, Chairman of the Sichuan Investment Group, were keen to learn f r o m S i n g a p o r e ’ s g o v e r n m e n t - l i n k e d c o m p a n i e s o n t h e i r global isation strategies and corporate governance p r a c t i c e s , a s we l l a s successful entrepreneurs’ bus iness deve lopment strategies. keppelite

The Sino-Singapore Tianjin Eco-City (Tianjin Eco-City) has made much progress since its groundbreaking three years ago. Today, the Eco-City boasts budding greenery and eco-friendly buildings which meet strict ‘green’ standards.

Recently, the Tianjin Eco-City’s first “commercial street” was handed over to tenants. The development consists mainly of Grade A office buildings, high-end commercial developments and serviced apartments. Bearing testament to the strong development of the Eco-City, more than 90% of the available office space has been leased.

The 3.03-ha development has a total built-up area of 80,000 sm and is located in the vicinity of China’s first national animation industry park, the Eco-Business Park, a planned light rail transport hub and high-end residential areas. The development is an important facet of the

First influx of businesses

Eco-City’s drive to build a sustainable city for its residents as it prepares to welcome the first batch of residents in 2012.

More than 20 small and medium enterprises mostly from China, from the logistics, personal investment, import/export sectors, will be part of the first wave of businesses m o v i n g i n a f t e r t h e renovations are completed. Many of these enterprises hail from Tianjin’s Hangu and Tanggu districts located next to the Eco-City as well as from nearby provinces of Hebei and Shanxi.

In time, the development will offer a full range of l ifestyle services to the business community and Eco-City residents after the retail elements of the deve lopment are fu l l y onboard. These will include supermarkets, f inancial services, telecommunications services, and F&B outlets. keppelite

Study exchange

Tianjin Eco-City’s first “commercial street” welcomes its tenants

Mr Choo Chiau Beng, CEO of Keppel Corporation (seated third from left) welcomes the delegation from Sichuan led by Mr Huang Shunfu, Chairman of the Sichuan Investment Group (seated third from right)



F rom Rus s i a t o L a t i n America, the Keppel Group has consistently supported industry platforms and opportunities to further b u s i n e s s c o o p e r a t i o n and connect ions cross continents.

eNGAGING RUSSIAIn support of growing dialogue between business elites from Russia, the Commonwealth of Independent States and the Asia Pacific region, Keppel Corporation co-sponsored t h e R u s s i a - S i n g a p o re Business Forum (RSBF) for the third consecutive year, held from 25 to 28 September 2011 in Singapore.

Acknowledging Russia’s g r o w i n g e c o n o m i c influence, the forum focused on opportunities arising in emerging markets, and on how businesses could navigate the shifting global economic landscape.

Mr Tan Swee Yiow, President, Singapore Commercial, of Keppel Land, presented on investment opportunities in Singapore as part of a rea l estate roundtable discussion.

Giving an overview of the Singapore property market, its outlook and investment prospects, Mr Tan said, “Real estate investment opportunities abound in Singapore as the country’s

Deepening global ties

fundamentals are sound, and its economic and political climate stable.”

Mr Tan also shared insights on real estate growth areas in Singapore, namely, Marina Bay, Jurong Lake District, Paya Lebar Central and Kallang Riverside.

eNRICHING lATIN-ASIA RelATIONS Keppel was also the platinum sponsor of the annual Latin Asia Business Forum held on 5 October 2011.

Attended by some 300 business and government leaders, the event delved

into topics pertinent to post-recovery Asia and L a t i n A m e r i c a , s u c h as achieving sustainable g r o w t h , i d e n t i f y i n g opportunities emerging in these regions and harnessing these new engines of growth.

Keppel Offshore & Marine (Keppel O&M) and Keppel Integrated Engineer ing showcased the i r t rack record and capabi l i t ies a t t h e e x h i b i t i o n . Keppe l ’s management and representatives also hosted forum delegates at the Keppel-sponsored networking lunch.

Mr Choo Chiau Beng (second from right), Singapore’s Non-Resident Ambassador to Brazil and CEO of Keppel Corporation, interacts with government and business leaders at the Latin-Asia Business Forum 2011

Seven journalists from key Latin American television and print press also took the opportunity to visit Keppel O&M yards as part of the 12th Forum for East Asia-Latin America Cooperation Journalist Visit Programme.

Hosted by Mr Choo Chiau Beng, Singapore’s Non-Resident Ambassador to Brazil and CEO of Keppel Corporation, the journalists learnt more about Keppel O&M’s businesses and the market outlook particularly in Brazil. keppelite



reason, the inaugural Brunei Energy Expo was organised from 19 to 22 September 2011 to raise awareness on green technology and

Showcasing Keppel in bruneidrive the message of energy efficiency and conservation.

The Expo coincided with the 29th ASEAN Ministers of Energy Meeting, which was hosted by the Brunei Ministry of Energy.

T h e K e p p e l G r o u p participated in the Expo and showcased capabilities in offering sustainable solutions such as environmentally-friendly rigs, Waste-to-Energy plants and green data centres.

His Majesty Sultan Haji Hassanal Bolkiah Mu’izzaddin Waddaulah, the Sultan and

Yang Di-Pertuan of Brunei Darussalam, accompanied by Brunei Minister of Energy Pehin Dato Dr Hj Mohd Yasmin Hj Umar, visited the Keppel booth and was briefed by Mr Yong Chee Min, GM (Projects), Keppel Offshore & Marine.

Mr Yong shared, “We took the opportunity to present to His Majesty the various businesses that Keppel is involved in. Our participation at the Expo has further strengthened our ties with Brunei.” keppelite

Mr Yong Chee Min, GM (Projects), Keppel Offshore & Marine (third from left), elaborates on the group’s suite of offshore and marine solutions to His Majesty the Sultan of Brunei (centre) and the Brunei Minister of Energy Pehin Dato Dr Hj Mohd Yasmin Hj Umar

Even as a country rich in oi l resources, Brunei is keenly aware of the need to conserve energy and protect the environment. For this

T h e K e p p e l O f f s h o re & Marine (Keppel O&M) Lecture seeks to inspire and update the industry with the latest knowledge and research on offshore and marine technologies.

Into its ninth year, the annual lecture on 13 October 2011 attracted about 400 people from the academia, industry and public.

Guest speaker Professor Mark Randolph, a leading expert in deep sea engineering

In depth discussionsand senior researcher with the Centre for Offshore F o u n d a t i o n S y s t e m s , Un iver s i t y o f Weste rn Australia, shared insights into the challenges faced by offshore industry as well as how pipelines interact with the seabed.

Mr Choo Chiau Beng, CEO of Keppel Corporat ion and Chairman of Keppel O&M, highlighted, “This is a timely topic. The increasing demand for oil has sparked off a growing need to explore

deeper waters to extract untapped oil reserves from the challenging seabed. As such, more pipelines are expected to be deployed into the seabed in the coming years as more exploration and production activities are carried out worldwide.”

The Keppel O&M Lecture is co-organised by Keppel and the National University of Singapore under the auspices of the Keppel Professorship in Ocean, Offshore and Marine Technology. keppelite

Professor Mark Randolph at the ninth Keppel O&M Lecture



Keppel Nantong Shipyard ( K e p p e l N a n t o n g ) celebrated three major milestones on 8 October 2011, including the official launch of Keppel Nantong Heavy Industry (KNHI).

With China’s attractiveness as a cost eff ic ient and competitive shipbuilding centre, Keppel Nantong is looking to expand its current production capacity to build bigger offshore s u p p o r t v e s s e l s a n d structures.

KNHI will purchase three plots of land adjacent to

triple joy in Nantong

Keppel Nantong to meet this growing need.

Another significant occasion was the keel-laying of the 5,000-tonne Asian Hercules III floating crane for Asian Lift. When completed, it will be the world’s largest and most versatile heavy lift sheerleg crane vessel capable of lifting weights equivalent to over 5,000 saloon cars.

Keppel Nantong has also set up a workshop to support Keppel Integrated Engineering’s manufacturing of incineration furnace grates

The new workshop in Nantong to manufacture incineration furnace grates will enhance Keppel Integrated Engineering’s competitiveness in China

to enhance their competitive edge in China.

T h e r e a r e c u r r e n t l y 11 Waste-to-Energy plants in China us ing Keppel S e g h e r s ’ c o m b u s t i o n equipment and technology, with another six plants under construction.

Mr Lee Tai Kwee, President o f K e p p e l N a n t o n g , shared at the ceremony, “The relationship between Keppel and Nantong is akin to that of old friends. Thanks to the strong support from the Nantong government since 2005 when we started

our shipyard, we have grown over the years and created around 1,000 jobs for the people.”

The event was witnessed by Mr Ding Da Wei, Party Secretary of Communist Party of China Nantong Committee; Mr Zhang Guo Hua, Mayor of Nantong Municipal Government; Mr Chi Chiew Sum, Deputy of Consulate General from Shanghai; and Mr Choo C h i a u B e n g , C E O o f Keppel Corporation and C h a i r m a n o f K e p p e l Offshore & Marine. keppelite



K e p p e l S i n g m a r i n e ha s demons t r a ted i t s commi tmen t t o mee t the needs of customers with the safe delivery of Seaways 20, an anchor h a n d l i n g t u g s u p p l y v e s s e l t o S e a w a y s International.

Seaways 20 is the third vessel delivered to Seaways on schedule and without compromises on safety and quality. The first two vessels

On-track deliveryhave also maintained a good safety record.

Mr Hoe Eng Hock, ED of K e p p e l S i n g m a r i n e , said, “Seaways 20 has d e m o n s t r a t e d g o o d performance by exceeding its contractual bollard pull and speed during its sea trial performance.

“This successful vessel delivery reinforces Keppel S ingmar ine’s abi l i ty to

maintain high standards of safety and quality in our products and services.

“W ith a proven t rack record and expertise in the design and construction of specialised ships, we are well-poised to support Seaways in growing its modern fleet of sophisticated vessels.”

Seaways 20 was named on 14 October 2011 by Lady Sponsor Mrs Roma

Nijhawan, spouse of Captain Ashish Nijhawan, Chairman of Seaways International. The 100-tonne bol lard pul l vessel is equipped with dynamic positioning sys tem, th rus te r s and control pitch propulsion system to enhance its position keeping and manoeuvrability. She will perform terminal handling, anchor handling, escort and fire fighting duties. keppelite

The management of Keppel Singmarine and Seaways International celebrate the naming of Seaways 20, an anchor handling tug supply vessel



680,000 manhours clocked in the first nine months of the year. keppelite

Mr Pang Hee Hon, CEO of Keppel T&T, practise delivering a media statement as part of the crisis communications training

‘Hook up, do not take short cuts and look out for your buddy’. Over 10,000 participants took away these key points at the height safety campaign organised by Keppel Shipyard from 12 to 16 September 2011.

With height-related fatalities becoming a concern, the campaign aims to educate and raise awareness of w o r k i n g s a f e l y f r o m heights.

One in safetyTo reinforce the message, videos by the Workforce Safety and Health Council were screened as workers walked through exhibits on safe and unsafe work procedures. Safety souvenirs were issued to encourage participation.

Meanwhile, in Spring City, Kunming, China, the Keppel Land project teams had good cause to celebrate as both the La Quinta (Phase

2) and Hill Crest Residence (Phase 1) projects achieved zero incident rates for over

Delivering the right message in the right manner at the right time is critical especially in a crisis.

A crisis communications workshop was held for six of Keppel Telecommunications & Transportation’s (Keppel T&T ) management on 14 October 2011 to equip them with such skills in the face of a crisis.

The workshop is part of Keppel Corporation’s Group Corporate Communications a n d G r o u p H u m a n Resources departments’ effort in bolstering media management competency across the Group.

Crisis readySpecific crisis scenarios tailored to both Keppel T&T’s logistics and data centre businesses gave management plenty of opportunities to exercise and test their newly acquired media skills.

Mr Pang Hee Hon, CEO of Keppel T&T, commented, “During a crisis, how we communicate our actions is often as important as how we manage the crisis itself. The lesson created a realistic environment for us to be more aware of our body language and how we speak so that we will be better prepared, if the situation arises.” keppelite

Over 10,000 workers were reminded to ‘hook up, not to take short cuts and to look out for their buddy’ at the Keppel Shipyard-initiated height safety campaign



To further investment and trade between Keppel and the UK business community, His Royal Highness The Duke o f Yo rk v i s i t ed Keppel Corporation on 29 September 2011 to gain insights into Keppel’s business interests in the UK. He was accompanied b y B r i t i s h H i g h Commissioner H.E. Antony Phillipson and staff from Buckingham Palace and t h e B r i t i s h H i g h Commission.

Dr Lee Boon Yang, Chairman of Keppel Corporation, and senior management from the Group hosted the distinguished guests.

building bridges

I n s h a r i n g K e p p e l Integrated Engineering’s (KIE) strategy in the UK, Mr Loh Ah Tuan, Director of KIE, presented on the group’s env i ronmenta l

HRH The Duke of York (second from right) in conversation with Keppel Corporation senior management (from left) Ms Wang Look Fung, Director of Group Corporate Affairs; Mr Michael Chia, Director of Group Strategy & Development; Dr Lee Boon Yang, Chairman; and Mr Tong Chong Heong, Senior Executive Director

technologies and progress achieved on the Greater Manchester Energy-from-Waste P lant, present ly be ing bu i l t by Keppel Seghers.

The presentation followed with robust discussions on the operating environment and potent ia l business opportunities for Keppel in the UK. keppelite

From hosting historic yachts to celebratory events, Marina at Keppel Bay continues to be the region’s choice lifestyle destination.

For a month, the more than a century old yacht, Vega, stopped over at Marina at Keppel Bay. The missionary boat carries cargos of donated medical and educational supplies to isolated island communities in East Timor and Indonesia.

Vega’s capta in , Shane Granger, raised sponsorship

bay happeningsand interest towards the vessel and humanitarian work it delivered during its berthing at Marina at Keppel Bay, which was provided free of charge.

The Marina also attracted celebrations to its sprawling grounds at the Keppel Island Plaza on 3 October 2011. The German Embassy commemorated ‘The Day of German Unity’, graced by M r M a s a g o s Z u l k i f l i , Singapore’s Minister of State, Ministry of Home Affairs and Ministry of Foreign Affairs.

T h e e v e n t w a s w e l l - a t tended by over 500 esteemed guests including Mr Ong Teng Koon, Member of Parliament for Sembawang GRC and Mr Edwin Tong, Member of Parliament for Moulmein-Kallang.

Host H.E. Angelika Viets, Ambassador of the Federal Repub l i c o f Germany, entertained in style against the backdrop of Keppel Bay as guests wined and dined under the stars to popular German fare. keppelite

Mr Masagos Zulkifli, Singapore’s Minister of State, Ministry of Home Affairs and Ministry of Foreign Affairs (left), and H.E. Angelika Viets, Ambassador of the Federal Republic of Germany toasting to ‘The Day of German Unity’

36 empowering Lives

Keppelite I October 2011Keppelite I October 2011

36 empowering Lives

“There is a speech from my favourite wartime leader, Winston Churchill, that I especially like and which I can recite in full. Today, I will share it with you.”

Such was the intriguing manner in which Mr Pang Hee Hon, CEO of Keppel Te lecommunicat ions & Transportat ion, started his sharing session at the third installment of the Keppel Young Leaders (KYL) Leadership Series on 6 October 2011.

As his audience kept their ears peeled listening to him, Mr Pang continued, “It was reported that in October 1941, Churchill visited Harrow School to speak to the students. He stood before the students and said, ‘Never give in, never give in, never, never, never.’ Then he sat down. And that, apparently, was the entire speech.”

Raucous laughter greeted Mr Pang back amidst an atmosphere of amiableness and thus set the tone for yet another inspiring and enjoyable session, from which Keppelite shares excerpts of lessons gleaned.

Be ADAPTIVe “Different leadership styles are necessary for different social contexts and a leader would need to adapt and

adjust his style to suit. The social context can change quite rapidly, from a work environment to a social meeting, from a Singapore cultural context to a Brazilian or Chinese one. It may sometimes be challenging when dealing with people from various age groups with different mindsets formed from experiences garnered over the years. For a leader to be effective, he would need to recognise, understand and adapt to the changes.

“Change often means that we need to work in a new environment where we are out of our comfort zone.

Often, our tendency is to fight change rather than embrace it. This leads me to my second point which is about embracing changes.”

eMBRACe CHANGeS“In my 30 odd years of working, I have encountered resistance to changes on many occasions. This is especially prevalent in very successful organisations, where success sometimes leads to complacency and hardened mindsets.

“Sometimes, our fear of change leads us to be overzealous in listing all the potential downsides of an

The Leadership SeriesThe next session of the Leadership Series will take place on 3 November 2011 (Thursday), 6.30 pm, at Keppel Coporation. The guest speaker is Mr Chow Yew Yuen, MD of Keppel Offshore & Marine. Young Leaders interested in attending c a n r e g i s t e r w i t h [email protected].

idea or a project, and we become so disheartened that the non-feasibi l ity of the project becomes a self-fulfilling prophecy.

“For a successful organisation to retain its competitive edge, it needs to be ready to accept and embrace changes.”

MORAl COMPASS“What makes a leader truly great is his moral compass – to have a fundamental respect for individuals and humankind. Indeed, it is not just a trait of a genuinely great leader but also his duty. As the great Russian writer and moral thinker Leo Tolstoy once declared, ‘The sole meaning in life is to serve humanity’.” keppelite

Mr Pang Hee Hon, CEO of Keppel T&T, shares his experience at the third installment of the KYL Leadership Series

Learning from leaders

empowering Lives 37


empowering Lives 37


A s a h o m e - g r o w n multinational company with footprints in more than 30 coun t r i e s , Keppe l appreciates the universal language of the arts in promoting international goodwill and friendship.

Through supporting the Arts, the Group contributes to promoting the cross fertilisation of ideas, and nurture creative ideas and expressions. They will in turn enrich the lives of Singaporeans and contribute to Singapore’s growth as a vibrant city.

In recognit ion for the art of giving back to the community, Keppel was presented as Distinguished Patron of the Arts Award by Dr Yaacob Ibrahim, Minister for Information, Communications and the Arts on 29 September 2011 at the Patron of the Arts Awards Ceremony organised by t he Na t i ona l A r t s Council (NAC).

The Distinguished Patron of the Arts Award recognises individuals or organisations that receive the Patron of the Arts Award on the fifth consecutive occasion.

T h e K e p p e l N i g h t s programme was highlighted in a special video presentation on the award winners where Dr Lee Boon Yang, Chairman

Distinguished Patron of the Arts

of Keppel Corporation, shared on the sustainable t i cket subs idy scheme has made the arts more accessible to groups who are less able to afford tickets or need a little encouragement to experience the arts – namely youths, senior citizens and their families as well as heartlanders.

Since its launch, Keppel N ight s has suppor ted about 158 shows, offering 15,200 subsidised tickets and benef i t t ing about 12,600 people. It was jointly launched by the NAC and Keppel Corporation on 19 August 2008, as part of Keppel’s 40th anniversary celebrations.

Mr Teo Soon Hoe, Senior Executive Director and Group Finance Director of Keppel Corporation (right), receiving the Distinguished Patron of the Arts Award from Dr Yaacob Ibrahim, Minister for Information, Communications and the Arts

In 2010, Keppel extended its support to the scheme and enhancements were introduced to better achieve

ob j e c t i v e s o f mak ing appreciation of arts and culture more affordable and accessible. keppelite

The Keppel Night scheme was launched in 2008 as part of Keppel’s 40th anniversary celebrations

38 empowering Lives


W i t h p e o p l e a s t h e cornerstone of its business, Keppel is committed to actively nurture its talent pool.

F r o m s u p p o r t i n g developments in the wider human resource industry to organising in-house people cultivation programmes, talks and orientations, the Group drives a robust HR development roadmap to help Keppelites reach their full potential.

SHARING BeST PRACTICeSInvest in and develop strong leaders. Attract and retain the best talents. Improve workforce productivity.

building talentsThese s t ra teg ies were highlighted by Emeritus Senior Minister Goh Chok Tong at the Singapore Human Capital Summit on 28 September 2011.

At the summit, Mr Choo Chiau Beng, CEO of Keppel Corporation, also shared how Keppel invests in human capital to drive business performance and success.

He sa id , “The human resource strategy must be aligned with that of our business objectives. We want a stable and highly dedicated team who will stay with us for many years to grow with the Keppel Group. Our performance

in and beyond the current times will depend on how we successfully harness o u r h u m a n r e s o u r c e s t r a tegy to su s ta in a competent and committed global workforce.”

These strategies include the training and development of employees worldwide, as well as building up their skill sets to meet the changing needs of the industries. Mr Choo also shared how Keppe l empower s i t s people through mentorship programmes, career planning and overseas exposure.

Mr Choo further touched on the human capital challenges faced in Asia including the

lack of managers with diverse cultural and international business experience, as well as stiff regional competition for talents.

The Summit also saw the launch of Singapore’s first National Human Resources Scholarship by the Ministry o f Manpower (MOM). Keppel Group is one of the industry partners for this scholarship. Five deserving individuals received the scholarship, which aims to raise awareness of and elevate the human resource profession in Singapore.

One such recipient is 24-year-old Sam Neo who will join Keppel Corporation after

New Keppelites learn first-hand Keppel Seghers’ business of converting waste to energy

empowering Lives 39


graduation. In his final year of studies, Sam is pursuing a Bachelor of Business Administration, specialising in HR, from the National University of Singapore.

On presenting the award to Sam, Mr Choo shared, “It is opportune that MOM has launched this new scholarship for the human resources profession. This is in line with Keppel’s objective of being an employer of choice through nurturing a team of capable and versatile in-house human resources professionals. ”

DeVelOPING KePPelITeSPutting strategies in action, Keppel College held the Leadership Development Programme, from 13 to 15 October 2011 for 18 Keppelites across the Group. The flagship programme was organised by Keppel College, and leverages a “learn by doing” approach to groom individuals.

The participants got out of their comfort zone and were put through a series of grueling challenges and training to hone their team spirit and leadership skills.

After three days at Pulau Ubin, participants gained a better understanding of t he i r pe r sona l i t y and behaviour, as well as that of others.

I n a n o t h e r e v e n t o n 17 October 2011, more t h a n 7 0 p a r t i c i p a n t s c o m p r i s i n g d i r e c t o r s from the Keppel Group, senior management and HR l eade r s , a t t ended a ta lk by Mr C laud io Fernández-Aráoz, renowned HR thought leader and a frequent keynote speaker.

Organised by the Keppel Group Human Resources division, such platforms are one of the avenues to provide senior management w i t h e m e r g i n g b e s t practices in managing the company’s future leaders and retaining talents with high potential.

Mr Fernández-Aráoz, senior advisor at Egon Zehnder Internat ional , kept his audience engaged with his astute research findings, which participants felt were strongly relevant to the development of, as well as interaction with their staff.

Our performance in and beyond the current times will depend on how we successfully harness our human resource strategy to sustain a competent and committed global workforce.Mr Choo Chiau Beng,CEOKeppel Corporation

Sam Neo (right), one of the recipients of the National HR Scholarship, with Mr Chee Jin Kiong, Director for Group Human Resources, Keppel Corporation (second from right), and his family

Keppelites “learn by doing” at the three-day Leadership Development Programme at Pulau Ubin

WelCOMING NeW HIReSA warm welcome into the fold is also a rite of passage for new Keppelites. Some 230 of them were formally inducted into the Keppel family on 6 October 2011.

Mr Choo shared personal and candid anecdotes from his nearly 40 years experience in growing with the company.

Following introductions to the Group’s var ious businesses and strategies, the new Keppelites toured facil it ies of the various

business units including Keppel FELS’ Pioneer yard, Keppel Logistics’ warehouses, Keppel Seghers Tuas Waste-to-Energy Plant, Reflections at Keppel Bay show gallery and Marina Bay Financial Centre.

Chen Jiejing, Project Engineer for Process Excellence at Keppel FELS, enthused, “The site visits were an eye-opener and definitely gave us insights into the other business units’ operations.” keppelite

40 empowering Lives


Up the rock wall, across the river, and up into the air against blue skies – is there nowhere that Keppelites will not go for adventure and achievement?

The triumphant spirit of t e a m w o r k s t i r r e d i n the air as the bold and brawny of Keppel Seghers B e l g i u m o v e r c a m e a mu l t i tude o f exc i t i ng challenges together at the company’s team-building event, while a group of eight pulled all their weight to perform commendably at a trio-triathlon event.

OVeRCOMING OBSTACleSFrom rock-c l imbing to kayak polo and paragliding, as well as the flying fox course, all fears of water and heights were overcame at the act iv i t ies-based team-building event held on 22 September 2011.

The programme included a motivational talk by personal coach, Mr Wim Rombaut, who shared how holistic individuals and effective teams are developed.

The invaluable platform allowed staff across different departments and levels to engage each other, challenge their personal limits and in the midst, develop better understanding and mutual trust through team sports

One team, one visionand physically-demanding activities.

Mr Patrick Smits, Project Engineer, said, “The event was fun and enjoyed by e v e r y b o d y a n d m o s t importantly, helped to instill a sense of commitment to each other. It gave me an opportunity to see a different side of my colleagues. I will definitely participate again next year.”

COMPeTITIVe SPIRITTeam spirit also prevailed at the triathlon event, DiMarco Business Trophy, which saw eight Keppelites pitch their best efforts to accomplish the demanding feat with each completing a segment – swim 1km in a lake, bike 40km and run 10km.

Heidi Leemans, Assistant, Engineering Department was the only female contestant in the team. A regular competitive swimmer, she is accustomed to cold waters

and was the only one of two women to not don a wet suit!

Determined to give her team a good start in the competition, she put up a strong fight. Heidi shared, “It was a real tussle at the beginning when all the swimmers entered the water

at the same time. I gave it my all and was glad to be able to pass the chip to my team member in good time. In the end, we finished 48th in total of 263 finishing teams and were 9th in our category. The thrill of achievement for the team was phenomenal!” keppelite

Keppelites in Belgium show their Can-Do! spirit in a variety of team-building activities

The Keppel Seghers trio-triathlon team swam, cycled and ran with a great show of teamwork

empowering Lives 41


Walk-n-Fun for the Keppel familyIt was a red letter day for Keppelites as they turned up 480-strong for the annual Walk-n-Fun on 15 October 2011 held at West Coast Park. Whether for exercise, bonding with family, thrills for the kids or simply catching up with friends and colleagues, the annual event provides for all that and more. Keppelite captures the smiles and fun in the sun.

42 empowering Lives


After many heart-stopping matches, the finals saw Caspian 2 pit wit and skills against Pacific 1. At the end, it was Team Pacific who won the Champion trophy, while Team Caspian took home the overall Challenge Trophy.

the competition heats upIt was non-stop action in the months of September and October as Keppelites battled it out in different sporting activities in the Keppel Games.

BUll’S eyeIn a test of technique, skill and mental strength, 12 teams competed in the Keppel Darts Challenge at the AUPE Wisma on 25 September 2011.

Moments of anxiety and

rapturous cheers filled the arena as each team tried to outdo one another. It was a close fight right to the end, but it was Team Pacific who emerged champs, while Team Caspian took home the overall Darts Challenge Trophy.

DARTS CHAlleNGe

Group Total Competitive Participation Management Points Points Points Bonus Points

Atlantic 10 0 5 5

Caspian 59 50 5 4

Pacific 43 40 0 3

FIeRy SMASHThe Keppel Table Tennis Challenge was off to a smashing start at the Republic Polytechnic Sports Complex on 2 October 2011 with over 50 Keppelites competing for top honours.

TABle TeNNIS CHAlleNGe


Atlantic 7 0 5 2

Caspian 60 50 5 5

Pacific 49 40 5 4

ROllING GOOD TIMeSAmongst the 24 teams of 120 bowlers who displayed their skills at the Orchid Country Club Bowling Alley, it was Team Atlantic who struck gold at the Keppel Bowl ing Chal lenge on 9 October 2011.

Amids t sp inn ing ba l l s and crashing pins, Team Pacific picked up the Best Male Bowler award, while Team Atlant ic retained their Challenge Trophy by c l inching al l top three positions, as well as the Best Female Bowler award.

BOWlING CHAlleNGe


Atlantic 99 90 5 4

Caspian 10 0 5 5

Pacific 9 0 5 4

empowering Lives 43


SMASHING SUCCeSSFrom drop shots to hard smashes to long rallies, spectators were kept at the edge of their seats a s t he y wa t ched the Keppel Badminton Challenge at the Choa Chu Kang Sports Hall on 9 October 2011.

It was a close competition right from the start with opposing teams scoring one point after another. Pacific 1 eventually emerged the overall champion after a nail biting final against their fellow team mates, Pacific 2. Team Pacific also bagged the overall Challenge Trophy.

BADMINTON CHAlleNGe


Atlantic 10 0 5 5

Caspian 30 20 5 5

Pacific 80 70 5 5

VIRTUAl STRIKeSAn air of excitement filled the Colosseum at iLuma on 16 October 2011 as rows of serious gamers clicked away furiously behind computer screens.

In the first ever Keppel Cyber Games Challenge, teams ‘fought’ over the popular game of Counter-Strike. Each four-member team had to complete their mission

objective and at the same time eliminate opposing teams.

It was a sight to behold as teams navigated control sticks and keypads while shouting commands through their mouth pieces. After gruel ing rounds, Team Pacific emerged as both the champion as well as winner of the Keppel Cyber Games Challenge Trophy.

CyBeR GAMeS CHAlleNGe


Atlantic 7 0 5 2

Caspian 29 20 5 4

Pacific 80 70 5 5

With four more games to go, Team Pacific is currently leading with 341 points, as at 29 October 2011.


Atlantic 173 130 25 18

Caspian 253 205 25 23

Pacific 341 300 20 21

KePPel GAMeS 2011: OVeRAll SCOReBOARD

Team Atlantic: Keppel Shipyard and Alpine Engineering; Team Caspian: KOMtech and Keppel FELS; Team Pacific: Keppel Corporation, Keppel Energy, Keppel Integrated Engineering, Keppel Singmarine, Keppel T&T, Keppel Land and M1.

44 empowering Lives


In Race 3 of the Clipper 11-12 Round the World Yacht Race, the Keppel-sponsored Singapore yacht crossed the finish line against the magnificent backdrop of Table Bay near Cape Town, South Africa, in a credible fourth place amidst fierce competition.

This places Singapore in a good third position in the overall race standings.

Upon arriving in Cape Town, Singapore’s Skipper Ben Bowley shared, “It was a tough race! It certainly put the crew, the boat and, to a certain extent myself, through our paces. From nasty weather in the early part of the race to very light weather towards the end, it was a race to remember.”

Reflecting on his experience of crossing an ocean under sail, 49-year-old Singaporean Kwong Chung Kan, said, “The worst moment was when we were go ing through choppy waves. You hit a huge wave and get lifted off the bunk a few inches making it almost impossible to sleep!

“However, once you’re up on deck, the good weather, sunrise and sunset, as well as the occasional surprise visits from dolphins and whales, makes all that we go through worthwhile.”

beating the oddsThe ten-strong fleet is now racing towards Geraldton, Western Australia, in Race 4 of the 15-race series. This 4,800-mile race will see the teams battle the infamous Southern Ocean as they experience some of the most

Singaporean Kwong Chun Kan is part of the winning crew who steered Singapore to fourth place in the race towards Cape Town

extreme sailing conditions at sea.

At press time, Singapore is at seventh position, but s k i p p e r B e n r e m a i n s confident. He said, “Even though we are not the best

placed boat at the moment, it feels fantastic to be back at sea again. We have already proved that team Singapore is more than capable of making up places with hard work and focus.” keppelite

empowering Lives 45


Herd instinct Even when caught in the swim of things,he’ll find a sweet spot to make his calls.The Can-Do! spirit without a blink,he is a Keppelite after all.

(Photo courtesy of Mrs Eileen Choo) Keppelite was told that even when on vacation in Tanzania, Africa, Mr Choo Chiau Beng, CEO of Keppel Corporation, was spotted watching happy hippos having a splash in the sun while connecting with Singapore at the same time. He can do, anywhere.

As the roads in Singapore roared with action from the Formula 1 (F1) Grand Prix race in September, Keppelites too partook in the race a different way.

Most of the 350 Keppelites f r o m K e p p e l Te lecommunicat ions & Transportation donned race jerseys and leather jackets as they revved up a night of thrills at the F1-themed Dinner and Dance (D&D).

Loud cheers and rapturous laughs filled the ballroom as Keppelites were entertained

racing into the night

by racing games, group performance challenges, and of course, dancing.

Keppelites at Keppel T&T giving the hands up for a racing D&D

The D&D took place at the Novotel Singapore on 9 September 2011. keppelite

46 empowering Lives


There ain’t no mountain high enough for 10 adventurous Keppelites who surmounted Southeast Asia’s tal lest peak – Mount Kinabalu in Borneo – on trip organised by Keppelite Recreation Club (KRC) from 27 to 30 September 2011.

For many of the participants, the 4,095-m mountain was the highest they had ever conquered. Ranging from 25 to 64 years old, the group was diverse in age, gender and experience, but unified in a singular goal –

Scaling great heightsto ascend the peak as a team safely.

To prepare for the arduous journey, the group trained hard and built up their endurance at the Bukit Timah Nature Reserve every Sunday for two months.

The training proved useful. As they reached higher a l t i t u d e s , t h e g ro u p contended with thin air, cold weather and strong winds. But even the drizzle and altitude sickness did not stop the climb, as the Keppelites

braved the chal lenging conditions.

“The trip had pushed my body tolerance and mental strength further than ever. The climb seemed never ending initially and it took faith to hang on to some of the ropes along the steep slopes in the dark with only our headlights shining.

“While the view from the top was breathtaking, it was the exhilarating journey through which I bonded with my teammates that I treasure

most,” shared new Keppelite Ta Wee Kiang, an electrical engineer who joined Keppel Singmarine in July.

For Shirley Shou, Deputy Project Director from Keppel Land, the journey was an insightful one, “I am glad that I participated in the trip which was the perfect platform to meet Keppelites from other divisions. It is not difficult to identify and bond with Keppelites who share the same core values.” keppelite

Tenacious attitude and team spirit ensured the group’s successful completion of the challenging trek

empowering Lives 47


Keppelites Abroad

Qatar living

“Despite these, there are many aspects of my job that I truly enjoy. In particular, I relish working in a multi-cultural environment. At the peak of construction, we had some 2,000 people from 26 different nationalities w o r k i n g o n s i t e a n d everyone brought something unique to the table. It was a wonderful experience learning from and sharing with one another.”

The Domestic Solid Waste Management Centre was recently handed over to the clients and is now in the

operational and maintenance phase.

Geoffrey shared, “The excellent teamwork between Keppelites, sub-contractors, consultants and suppliers has been the key to the success of this project. Taking away the many lessons and relations we have gained from this project, I believe we are well-positioned to capture more growth opportunities in the Middle East.”

Having been away from home in Sydney, New South Wales, for some time, one of

For globe-trotter Geoffrey Piggott, working in a foreign land is no skin off his nose. Currently based in Qatar, the Australian has lived and worked in many countries, including the UK, Brunei, China and Singapore.

The 59-year-old joined Keppel Integrated Engineer ing as the Project Director for the Domestic Solid Waste Management Centre in Qatar and became the Regional Manager (Middle East and North Africa) of Keppel Seghers on 1 August this year.

Geoffrey shared, “The solid waste project was our first inroad in Qatar. When I first came, the biggest challenge was adapting to the local style of working. There were trying moments, but I have learnt a great deal of patience and diplomacy.”

He said, “In addition, since almost al l construction materials and equipment were imported into Qatar, getting materials and paying a reasonable price for these mater ia l s was another key challenge. A ‘hands on’ project management approach has been critical in helping me overcome many of such challenges.

the activities Geoffrey misses most is the ‘Historic Racing Meetings’.

He enthused, “I am very passionate about vintage racing cars. I own a couple of such cars including a 1958 Lotus 11, which I will race in whenever I am back in Australia. I am a firm believer in work-life balance, and sharing my passion with like-minded hobbyists is something I look forward to.” keppelite

Geoffrey Piggott, Regional Manager (Middle East and North Africa) of Keppel Seghers, at the Domestic Solid Waste Management Centre in Qatar

48 Nurturing Communities



Acknowledging KIE’s support as a Gold Sponsor of the Semakau Run, guest-of-honour Dr Vivian Balakrishnan, Minister for the Environment and Water Resources (left), presents a crystal memento to Mr Lim Chiow Giap, Senior GM of KIE (Operations) (right)

Recognis ing that every effort counts, Keppel is committed to give back to the community through its multi-faceted approach towards corporate social responsibility (CSR).

RUNNING FOR A CAUSeKeppel was one of the sponsors for two running events in October, the Singapore Half Marathon 2011 and Semakau Run.

The inaugural Singapore Half Marathon, which took place at East Coast Park on 2 October 2011, was supported by Keppel Land.

Mr Choo Chin Teck, Director, Corporate Serv i ces o f Keppel Land, said, “The Singapore Half Marathon not only promotes a healthy lifestyle and sportsmanship but also supports the good cause of raising awareness

Doing goodfor breast cancer among Singaporeans.”

M e a n w h i l e , K e p p e l Integrated Engineering (KIE) continued its support for the Semakau Run, which raises funds for environmental and charitable causes.

This year, apart from a cash donation, KIE fielded a team of eight employees who participated in the five-km run held on 8 October 2011 on Semakau Island. The run was organised by the National Environment Agency and MediaCorp as part of the Clean and Green Singapore campaign.

Mr Lim Chiow Giap, Senior GM of KIE (Operations), shared, “This community event is aligned with KIE’s goal of re spons ib l e co rpora te citizenship, and our position as the preferred provider of

environmental solutions and services.

“We are pleased to contribute to the communities where we operate, and will continue to play our part to participate in community development and to achieve environmental sustainability.”

CeleBRATING CHIlDReNIn celebration of Children’s Day, Keppel Land supported the ‘10,000 & More Fathers Reading!’ programme at the National Library on 7 October 2011.

Into its fifth year, this year’s initiative was themed “Reading – Your Very First Gift to Your Child” and aimed to encourage fathers, particularly those in the aviation, property, technology and sports industries with irregular working hours, to read to their children on a regular basis.

Through Keppel’s support of this event, father figures a t Keppe l Land we re encouraged to take time off to connect with their children through reading.

Mr Yee Kee Kong, Senior Project Manager (Singapore Commercial) of Keppel Land and father of two daughters, aged 8 and 12 years old, shared, “The event was a great way to bond with my daughters, especially since I hardly have the time to read with them. Such efforts by our company are commendable as it encourages us to maintain work-life balance.”

Meanwhile, Keppel also contributed to the Children for Children 2011 initiative which aims to give a taste of fun, camaraderie and the arts to children who may otherwise never get

Ms Serena Toh, Deputy General Manager, Investor Relations & Research, of Keppel Land (right), receives the signed book in support of the Singapore Disability Sports Council from Acting Minister MG (NS) Chan Chun Sing for the Ministry of Community Development, Youth and Sports (left)

Nurturing Communities 49


Representing the Keppel Group at the Hanoi concert, Mr Doan Anh Hung, DGM (Vietnam) of Keppel Land, said, “We are heartened that some of our graduating scholars have returned to

Chords of friendship

their homeland to contribute to the local arts scene. The concert, which was initiated by the students themselves, reflects the strong and friendly ties between Keppel and Vietnam.” keppelite

Keppel Music Scholars put up a concert in Singapore and Vietnam

I n a p p r e c i a t i o n o f Keppe l ’s suppor t and t o c o n t r i b u t e t o t h e c l a s s i c a l mus i c s cene in Vietnam, present and a l umn i Keppe l Mus i c Scholars with classmates from the Yong Siew Toh Conservatory of Music de l i v e red conce r t s i n Singapore and Hanoi on 28 September and 1 October 2011 respectively.

The students’ performance of French chamber works, i nc lud ing the famous The Carnival of the Animals by Saint-Saëns, went well with the audience.

Keppe Music Scholar and organiser Viet Ha shared, “Each of us came to music through various ways but what we have done and what we are doing now would not have been possible without Keppel’s kind support. We would like to thank Keppel for their contribution to cultural education in Vietnam and Singapore.”

In 2003, Keppel committed a total of $600,000 towards the Keppel Music Scholarship for 10 Vietnamese students to pursue their tertiary music studies at the Conservatory in Singapore.

young, they can make a posit ive difference and contribute to building up the community. This effort created enduring value for the future,” shared Ms Wang Look Fung, Director, Group Corporate Affairs, of Keppel Corporation.

eNABlING SPORTSKeppel Land also sponsored the book, “Dreams, the Living and the Pursuit”, autographed by former President Nathan in support of the Singapore Disability Sports Council.

The book was presented by Acting Minister MG (NS) Chan Chun Sing for the Ministry of Community Development, Youth and Sports at a gala dinner on 13 October 2011. keppelite

Well-known storyteller Roger Jenkins enchanting children and parents alike with his animated storytelling

such an opportunity. The event also raised funds for ChildAid, an annual fundraising concert jointly organised by The Business

T imes and The St ra i t s Times.

“The Children for Children initiative is an innovative

platform to enable our young ones to care for those lesser privileged amongst them. We want to encourage the mindset that although





C o m m i t t e d t o t h e d e v e l o p m e n t o f t h e Ph i l ipp ine communi ty, Keppel i tes continue to provide ardent support to an array of local social causes.

HOMe SWeeT HOMeSome 20 families have already been allocated homes in the Keppel-GK Eco Village, a 60-home housing project for the poor jointly undertaken by Keppel , the char i ty organisation Gawad Kalinga (GK) and the government of the Municipal of Bauan, Batangas in the Philippines.

The Eco Village has been tak ing shape s ince i t s groundbreaking in April this

Care for the community

Some 20 families will soon move into the Keppel-GK Eco Village, a housing project for the underprivileged in the Philippines

Keppel Batangas Shipyard took part in a nation-wide initiative to raise funds for out-of-school youths

year. Volunteers from Keppel Batangas Shipyard, GK and the local community, have been putting their backs into the construction of the estate, extending much needed helping hands to the less fortunate.

The future residents of the Eco Village have also been actively involved in the development of their homes, building a sense of ownership and belonging to the community.

Angel i ta Padayao who will soon move into the village with her family, said, “My family – especially my grandson – is so happy to

finally have a place to call home.”

Families will move into the estate after contributing 1,000 manhours to the construction of the Eco Village.

In the true spirit of giving, the 11 families who have e x c e e d e d t h i s t a r g e t continue to lend a hand to the construction process.

FUNDS FOR eDUCATIONEmp loyee s o f Keppe l Batangas Shipyard also took part in Alay Lakad, an annual initiative to raise funds for out-of-school youths in the Philippines.

Municipal Mayor of Bauan, Ryanh M. Dolor, said, “We thank our communi t y partners such as Keppel for providing out-of-school youths with moral, technical and financial support for personal development.

“Our efforts will help take kids out of the streets and into the classrooms. This will help them better their lives and become productive members of the society,” shared Alan I. Claveria, HR & Administrative Manager of Keppel Batangas Shipyard and part ic ipant of this national initiative. keppelite

Nurturing Communities 51


We bel ieve that when communities thrive, we thr ive. From enr ich ing the lives of persons with special needs to protecting wildlife, Keppel Volunteers regularly supports a variety of programmes to nurture the communities.

CReATIVe IMPUlSeAccompanied by Keppelites, t h e s t u d e n t s o f t h e Association for Persons with Special Needs (APSN) v i s i ted the ArtSc ience Museum on Children’s Day, 1 October 2011.

Active volunteer Chua Xin Ni, Accounts Execut ive at Keppel Telecommunications & Transportation, enthused, “Creative in concept and med ium, the exh ib i t s stimulated excited discussions amongst the APSN students. Many of these students are attending art classes and, perhaps, some of these ideas might be incorporated in

Active givingtheir art works. I thoroughly enjoyed myself and look forward to more good times with these youths.”

PROTeCTING WIlDlIFeWildlife and environmental protection was the agenda of the day when Keppel Volunteers visited ACRES (Animal Concerns Research and Education Society), an an ima l p ro t e c t i on organisation which also serves as a rescue facility for injured wild animals, on 8 October 2011.

Through the v is i t , the volunteers gained a deeper understanding of unethical animal products.

On learning about the trade in prohibited animal parts, Teh Ming Ching, an engineer from Keppel Singmarine, remarked, “I never knew this was happening. Now that I do, there is no more turning a blind eye.”

Thomas Leong, an engineer from Keppel Shipyard, who organised the visit, shared, “The dedication and love that the ACRES staff have for animals is truly inspiring. We should support them as much as we can and care for wildlife. Keppel Volunteers will definitely explore more tie-ups with ACRES in the coming months.”

TASTy TReATSKeppel Volunteers also supported APSN in its efforts to explore avenues to raise funds. Tasty cookies and muffins, prepared by the beneficiaries of APSN, were sold at Keppel Shipyard on 19 October 2011. All treats were snapped up within 50 minutes. keppelite

To celebrate Children’s Day, Keppelites treated students from the APSN to a day out at the ArtScience Museum

Keppelites’ care for the community extends to even animals

Kepplites snaps up tasty treats sold by the APSN

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Be it from repeat customers or new partners, Keppel’s proven r ig designs are winning orders worldwide. This October, Keppel FELS won contracts for two jackup rigs to be built to its proprietary designs. The first US$245 million contract comes from long-time partner, Ensco for an enhanced KFELS Super A Class harsh environment jackup rig which is scheduled for delivery in 3Q 2014. Ensco exercised an option which was part of its earlier

Premium newbuilds for ensco and Safin

order of two KFELS Super A Class rigs on 10 February 2011.

Mr Dan Rabun, Chairman & CEO of Ensco, said, “Ensco’s new series of jackup rigs are enhanced versions of the KFELS Super A Class design that will provide increased levels of efficiency for customers.

“By building these new Super A Class jackups, we w i l l con t i nue En s co ’s tradition of delivering leading customer service with one of

the largest and youngest premium jackup fleets in the world.

“Standardisation across our 11 KFELS design rigs improves rel iabi l i ty for customers as we benefit from more efficient construction, training, daily operations, inventory management, and repairs and maintenance.”

Mr Tong Chong Heong, CEO of Keppel Offshore & Marine, said, “We are confident this new generation rig will meet the requirements for robust drilling solutions in harsh environments. The KFELS Super A Class has been customised to meet Ensco’s needs and demonstrates the win-win partnership we have with Ensco in growing both our companies to the next level.”

A v i a b l e a n d c o s t -effective solution for harsh environments and cold cl imate areas, the new KFELS Super A Class boasts the distinctive qualities of Keppel FELS’ proven jackup rig designs.

The second contract, worth US$199 million, from Safin Gulf FZCO (Safin), is for the high-specification KFELS B Class rig.

Scheduled to be delivered

in 3Q 2012, it will be Safin’s first jackup rig. The rig will be a refurbishment and upgrade of a KFELS B Class jackup rig that Keppel FELS purchased earlier this year.

Mr Raimonds Namikis , Executive VP of Safin said, “The high-specification KFELS B Class is a proven design and with the tight jackup market, we are delighted to be able to receive it much earlier than if we were to place a new order.

“Working with Keppel, we are assured of the effectiveness of their proprietary designs and the reliability of their project management. This will enable Safin to meet the needs of our customers and kick start the programme of our premium rig fleet.”

Mr Wong Kok Seng, MD of Keppel FELS, added, “With the refurbishment and upgrade of this jackup, we are able to provide a high-specification rig on a fast-tracked schedule.

“Such jackups are in high demand, especially for those scheduled for delivery in 2012. Our keen understanding of our customers’ businesses enables us to anticipate their needs and tailor the appropriate products and services for them.” keppelite

The KFELS Super A Class is based on the proven KFELS harsh environment class rig blueprint which has been operating successfully in the North Sea since the 1980s

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