Singapore Government Press Release
Media Division, Ministry of Information and The Arts,
MITA Building, 140 Hill Street, 2^nd Storey, Singapore 179369
Tel: 837-9666

Mr Wagner Victer, Secretary of State of Energy, Shipbuilding Industry and Petroleum,

Mr Fernando Jordao, Mayor of Angra dos Reis,

Mr Aguilar Ribeiro, Union President for Steelworkers,

Mr Augusto Mendonca, Vice-President of PEM Setal Group,

Mr Choo Chiau Beng, Chairman and Managing Director of Keppel FELS Energy and Infrastructure,

Mr Tay Kim Hock, President of FELS Setal,

Distinguished Guests, Ladies and Gentlemen,

I am delighted to join all of you here today for the official opening of BRASFELS Yard by FELS Setal, the joint venture of Keppel FELS and the PEM Setal Group.

The joint venture marks a milestone in the revitalisation of Brazil’s offshore and marine fabrication industry.

Through FELS Setal, Keppel FELS will transfer skills and knowledge while PEM Setal will provide the local content. We in Singapore are very proud to be involved in this project.

Keppel FELS is a world leader in the construction of harsh environment jack-up drilling rigs. It is also a world leader in deepwater semi-submersibles and other highly sophisticated specialised vessels.

When Keppel FELS first came to Angra a year ago, there was not a single worker here. The Company chose to invest here because of Brazil’s strategic location and the availability of facilities and skilled manpower. From here, Keppel FELS is able to service its customers in the Mercosur region and beyond.

Since its formation 13 months ago, FELS Setal has created a wide spectrum of jobs for some 1,600 engineers, professionals and workers. Many Brazilian subcontractors have also benefited.

To date, the Company has clinched contracts worth a total of US$120 million. This helps Brazil’s foreign exchange situation as rig owners operating in Brazil are now able to send their rigs and specialised vessels here instead of overseas.

I would like to record my appreciation to the State Government of Rio de Janeiro and Mr Victer for your support of foreign investments and for the creation of an environment conducive to overseas investors such as Keppel.

This morning’s ceremony also symbolises growing economic co-operation between Brazil and Singapore. Up till recently, Singapore and many parts of East Asia have had very little economic contact with Latin America. Because of rapid economic growth in both regions, the picture will change in the coming years.

I hope that Brazil and Singapore will help lead the way in establishing links between our two regions. Keppel’s entry into the Brazilian market will inspire and encourage other Singapore companies to explore opportunities in this vast country. This afternoon, I will officiate the opening of another Brazil-Singapore joint venture shipyard at Niteroi.

In addition to the marine industry, another industry which Singapore companies should consider is tourism, particularly in locations like Angra. Angra is a beautiful seaside resort, and it is no wonder that the rich and famous come here in large numbers.

The distance between Brazil and Singapore will get shorter. With technology like the Internet, we are less restricted by physical distance and time zones. Advancements in telecommunications and transportation will make it much easier for our businessmen to operate in each other’s country.

This partnership between Keppel FELS and PEM Setal is a good example. To both Keppel and Setal, my heartiest congratulations on the opening of this splendid facility. May it bear many fruits for both partners and may it help bring prosperity to Brazil.