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    Brazilian yard wins FPSO conversion

    News // January 15, 2001
    The Brazilian subsidiary of Keppel FELS Limited, FELS Setal SA, has signed a Letter of Intent with Halliburton Productos Ltd for the conversion of the tanker Stena Concordia into a Floating Production Storage and Offloading (FPSO) facility.

    Mr Tong Chong Heong, Managing Director of Keppel FELS said winning the contract was evidence that the company's "near-market, near-customer" strategy was working for well.

    FELS Setal was established in March of last year as a 60/40 joint venture between Keppel FELS and PEM Setal. The company operates from a 360,000 square metre yard in the city of Angra dos Reis, about two hours south of Rio de Janeiro.

    The JV was established primarily in order to enable Keppel FELS to target the growing volume of ship repair and conversion work in South America and the Mercosul region, work primarily associated with the development of offshore oil fields off the coastof Brazil and Venezuela.

    Keppel FELS has considerable experience in the fabrication of marine and offshore facilities which, it claims, will be complemented by PEM Setal's experience in the fabrication of topside production facilities.

    Once finalised, the contract will be a major milestone for the JV shipyard - the last time any work of this magnitude was performed in Brazil was more than four years ago.

    Winning the contract to convert the Stena Concordia will be an important step towards the rejuvenation of the offshore and marine fabrication industry in Brazil, and is expected to create hundreds of new jobs in the state of Rio de Janeiro.

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