Reef Subsea acquires S3 Press Release 05.01.11

Keppel Singmarine Pte Ltd (Keppel Singmarine), the specialised shipbuilding arm of Keppel Offshore & Marine Limited (Keppel O&M), has delivered a platform supply geotechnical vessel on schedule to Greatship Global Offshore Services Pte. Ltd (Greatship).The vessel has been bareboat chartered to GC Rieber Shipping Asia Pte Ltd (GC Rieber).

Unlike standard platform supply vessels, Greatship Maya is a multi-functional enhanced offshore support vessel equipped with drilling unit, which is capable of operating at water depths of up to 1,800 metres. She is also able to perform real-time in-situ tests from downhole or seabed mode as well as various geotechnical laboratory tests onboard.

The 94-metre long vessel is equipped with two units of electrical driven 2600KW Azimuth thrusters and three units of 1050KW tunnel thrusters to achieve a Dynamic Positioning II capability. It has a moon pool and 1000 square metres of clear deck space for the installation of drilling derrick, line tensioner winches, mud pumps, hydraulic unit and various specialised containers for performing geotechnical services. Greatship Maya is the first state-of-the-art vessels that Keppel Singmarine is building for Greatship and customising for geotechnical services for GC Rieber.

The vessel will be deployed by GC Rieber and partner company Bluestone Offshore Pte Ltd in Australia in the first quarter of 2010. She was named today by Lady Sponsor, Mrs Hege Tiller, spouse of Mr Finn Atle Hamre, Managing Director of GC Rieber Shipping Asia Pte Ltd.

Mr Hoe Eng Hock, Executive Director of Keppel Singmarine, said, “We have worked hand-in-hand with Greatship over the last two years to deliver this fine vessel. Her successful completion reinforces Keppel Singmarine’s ability and commitment to provide reliable and versatile solutions in meeting the needs of all offshore environments.

“With proven track record and expertise in the design and construction of specialised ships, we are well-poised to support Greatship in growing its modern fleet of sophisticated vessels.”

Greatship Maya is one of the few OSVs in the world to be certified as Special Purpose Ship under the IMO SPS Code 2008 to meet stringent standard for safety and stability for vessels carrying more than 12 special project personnel.

Mr Venkatraman Sheshashayee, Executive Director of Greatship Global Offshore Services, said, “We are very proud of the outstanding quality and capability of Greatship Maya, which has reinforced our decision to work with a world-class shipbuilder such as Keppel Singmarine.

“As we look forward to the rest of our vessels this year, we are confident that they will perform to our customers’ expectations and distinguish Greatship as a choice provider of innovative and versatile solutions for the offshore industry.”

Just last year, Keppel FELS, a sister company of Keppel Singmarine, also delivered one KFELS B Class jackup rig, Greatdrill Chitra, ahead of schedule to Greatship.

About Keppel Singmarine

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

About Greatship Global Offshore Services

Greatship Global Offshore Services Pte Ltd is wholly-owned by Greatship India Limited (GIL). GIL is a wholly-owned subsidiary of GE Shipping. All of Greatship’s vessels conform to existing and envisaged IMO and Class rules, and are designed to operate in offshore waters across the world. GIL and its subsidiaries currently own and / or operate six platform supply vessels, eight Anchor Handling Tug Supply Vessels, two jack-up rigs and one Multipurpose Platform Supply and Support Vessel.

About GC Rieber Shipping Asia Pte Ltd

GC Rieber Shipping Asia Pte Ltd is wholly-owned by GC Rieber Shipping ASA (RISH) listed on the Oslo stock exchange. RISH business within offshore/shipping encompasses ship owning, high quality marine ship management of specialised vessels, project development and industrial portfolio management. The company has a unique competence on operations offshore in harsh environments, as well as design, development and maritime operation of seismic vessels. The company has also built substantial competence on subsea operations, both through strategic investments in subsea contractor Technocean, seismic operator Octio, Geotechnical operator Bluestone Offshore and through long term cooperation with other key players in the market.

Since the early 80′s our company has been involved also in worldwide offshore exploration and development with dynamically positioned subsea support vessels.

The company currently owns and operates three vessels within offshore subsea support (the Polar Prince, the ‘Polarbjørn’ and the ‘Polar Queen’). In addition, the ‘Ernest Shackleton’ operates as an offshore support vessel 120  days during Q2/Q3 each year. Furthermore, the company has through a 51% owned joint venture company, ordered four offshore new buildings for delivery in 2009/2010.

The group has in recent years through strategic acquisitions invested heavily in expanding in the value chain within offshore subsea.

GC Rieber Shipping acquired a 52% shareholding in the subsea contractor Technocean in 2007 and has later increased the shareholding to 58%. Technocean is headquartered in Bergen (Norway) and constitutes GC Rieber Shipping’s bridgehead into the subsea support (IMR) market. The company possesses substantial competence on subsea operations, such as ROV operations, soil removal on seabed, inspections, maintenance and repair. The internationalization of Technocean is well in progress and the company will benefit from GC Rieber Shipping’s presence in Asia, as Singapore is a well suited starting point for addressing the growing markets in both Asia and West Africa.

In 2008, GC Rieber Shipping participated in a private placement which provided a 40 % shareholding in the geotechnical company Bluestone Offshore, which is headquartered in Singapore. The company is dedicated to deepwater (75m+) core drilling and is one of two players worldwide within this  market niche. The company owns and operates one ROV support vessel – the “Bluestone Topaz” – which during 2008 was upgraded to handle operations at water depths up to 1800m, which sufficient for most offshore locations.

Overview of GC Rieber Shipping’s subsea fleet:

RRS Ernest Shackleton

Since her delivery in 1995, the  RRS ‘Ernest Shackleton’ (previously ‘Polar Queen’)  has performed several tasks within ROV and ocean bottom seismic. Since 2000 the ship has worked  a number of summer seasons for the worlds largest subsea contractor; Acergy, undertaking ROV pipeline and platform inspections in the North Sea.

Polar Prince

In 1999, our company took a major step further into the offshore market when our newbuilding ‘Polar Prince’ was chartered for 6 years by Saipem’s subsidiary Sonsub Ltd for heavy-duty ROV and construction support duties.

The ‘Polar Prince’ has since proven to be a success, setting a new standard for this type of vessel.  In 2000-01 she was involved in the record-breaking Blue Stream pipelaying project in the Black Sea.During.  Other major projects by charterers Sonsub include the oilrecovery operation on the wreckage of tanker ‘Prestige’ off Spain, and the Green Stream pipelaying project off Egypt, where the Polar Prince supported ROV operations at a record-breaking 3850 meters.

The vessel’s 150 ton heave-compensated crane, large deck area and two moonpools are amongst the details that are valued by demanding clients within the offshore subsea market.

Polarbjørn

Our latest newbuilding – the  ‘Polarbjørn’ – was built in Norway in 2001. This vessel is an in-house design, built as an Antarctic expedition vessel, but also designed for advanced ROV and light construction- and cable support duties. Her DP2/AUTR class, large deck areas, knuckle-boom crane, large under-deck storage holds and accommodation for 84 charterers personnel makes this vessel an excellent working platform for demanding sub-sea contractors and their clients.

With her large number of berths, her large underdeck cargo holds and exceptional seakeeping characteristics, the ‘Polarbjørn’ has twice been chosen for accommodation- and base-ship charters, during which the ship has accommodated and catered for a large number of personnel.

Polar Queen

The largest ship of our fleet – the 146 meter long ‘Polar Queen’ , was  built in 2001 and purchased by us early 2005.  The ship has undertaken ROV and cable trenching work in the USGulf and the North Sea, and has since been engaged by Acergy for a 6 -11 year charter.  The ‘Polar Queen’ was therefore during 2006 converted into a purpose-built umbilical/flowline vessel for world-wide trading.

GC Rieber Shipping and private equity investor HitecVision have, in line with a stock exchange notice on 22 October 2009, established a 50/50 owned company, Reef Subsea AS.

Reef Subsea has received a capital injection of NKr 195 million and will, as part of the transaction, take over GC Rieber Shipping’s investments in the geotechnical company Bluestone Offshore Pte Ltd and the subsea service company Technocean AS, including the subsidiary Scan Mudring.

Reef Subsea has in parallel contributed US$17.5 million in new equity to Bluestone (94 per cent shareholding), which allows a restructuring of Bluestone’s balance sheet. Furthermore, Reef Subsea has committed to subscribe a planned NKr 75 million share issue in the Technocean (58 per cent shareholding). Bluestone and Technocean, including the subsidiary Scan Mudring, will thus secure a solid financial capacity for further growth within the company’s niches.

Bluestone has, as also as described in a stock exchange notice of 22 October 2009, entered into a time charter agreement with a subsidiary of GC Rieber Shipping for the vessel Greatship Maya.

Outfitting of Greatship Maya as a geotechnical vessel is now complete, and the vessel is ready to start its first two-month contract, conducting geotechnical surveys offshore Australia for NERC.