Speech by Mr. Lim Hng Kiang, Minister for Trade and Industry at the Naming Ceremony of the KFELS B Class jack up rig, PV Drilling I, on Thursday, 8 March 2007, at 10.15 am, at Keppel FELS (Pioneer Yard)

Mr. Do Huu Hao,
Vice Minister, Ministry of Industry, Vietnam

Mr. Le Danh Vinh,
Vice Minister, Ministry of Trade, Vietnam

Mr. Choo Chiau Beng,
Chairman and CEO, Keppel Offshore & Marine

Mr. Tran Ngoc Canh,
President, Vietnam Oil and Gas Group

Distinguished Guests

Ladies and Gentlemen

Good morning. It is with great pleasure that I join you today in celebrating the auspicious naming of PV Drilling I as Vietnam takes ownership of the country’s first fully-owned rig. To all our friends who have come all the way from Vietnam, I would like to extend a warm welcome.

Celebrating the naming of PV Drilling I

This ceremony is a significant milestone for Vietnam especially when it is expanding its oil and gas exploration activities and developing its hydrocarbon fields.

Here in Singapore, Keppel FELS too has cause to celebrate as they have again delivered a new rig on-time and on-budget. I understand that Keppel FELS has also achieved excellent safety standards during the construction of this rig. With over 1,000 people working onboard the rig at any one time, the company has done well in ensuring that every worker who comes to work goes home safe. Above all, I am told that its owner, PV Drilling, is pleased with the quality of this rig.

Marine Industry in Singapore

Singapore has an established marine industry, which started in the 1970s.Today, we have global leadership positions in the areas of ship building and conversion, with about 70% world market share in conversion of floating production storage and offloading platforms and over 60% world market share in oil rig building.

Many offshore companies have regional operations in Singapore, comprising R&D, manufacturing, and related services. Companies can leverage on Singapore’s manufacturing strengths to tap new opportunities such as deep water exploration and production, and equipment manufacturing.

Keppel Offshore & Marine is a key player in this industry. The rig PV Drilling I is built to Keppel’s proprietary rig design, the KFELS B Class. The design is today the market standard for jack-up drilling rigs.I am glad that companies like Keppel are constantly innovating to develop new designs with new capabilities to meet market needs and stay ahead of competition. This sets a good example for other Singapore companies to look into the use of innovative business methods and models to build enduring businesses.

Bilateral Ties between Singapore and Vietnam

Vietnam’s rapid growth and sound economic policies offer a conducive business environment for investments. The country is also fast becoming a key regional oil and gas exporter with over 600 million barrels of proven oil reserves.

In fact, Prime Minister Lee Hsien Loong commented that Vietnam has all the right conditions for sustainable economic growth. He cited the national leadership's practical vision, the strengthening of legal mechanisms and the social oneness of mind on reform processes, as some of the key factors. All these will help Singapore companies find more investment opportunities in Vietnam, thus contributing to increasing prosperity and friendship between the two countries.

Singapore is happy to participate in and contribute to the growth of Vietnam. Trade between Singapore and Vietnam rose by 8.64% to S$11.3 billion in 2006, making Singapore Vietnam’s 4th largest trading partner [1].Likewise, the Vietnamese market plays an important role in Singapore’s economy. With S$8.7 billion worth of exports in 2006, Vietnam is Singapore’s 14th largest export market [2].

Singapore’s strong ties with Vietnam go back a long way. Keppel FELS is a good example of a company that has been actively involved in Vietnam since the 1980s.In 1984, Keppel FELS built Hoang Sa, a 1,200-tonne floating crane. Later in 1988, it delivered Vietnam’s first drilling rig, Tam Dao 1, for Vietsovpetro, a Vietnam-Russian joint venture. Almost twenty years later, Keppel FELS is delivering Vietnam’s first fully-owned rig.

Apart from these projects, I understand that Keppel’s associate company, Singapore Petroleum Company, is participating in two of Vietnam’s concessions with plans for more as and when opportunities arise.

Over the years, the relationship between Singapore and Vietnam has grown from strength to strength. Today, apart from the oil and gas industry, Singaporean investors are involved in almost every sector of the Vietnamese economy from property to supplying premium beer to constructing wastewater treatment plants.

Increasingly, Singapore investors are seeing the potential in Vietnam, especially in real estate and construction. Keppel Land is ranked among the top five Singapore companies with the highest foreign direct investment in Vietnam[3].I am told that its current investment capital is over US$650 million in residential development, townships, commercial properties, mixed-use developments and service apartments in Hanoi, Ho Chi Minh and Vung Tau.

Singapore companies have also made significant investments in the food and beverage industry. Asia Pacific Breweries is one of them, with over 80% market share of the premium beer market.

Our business dealings with Vietnam also include ventures into wastewater treatment. For example, Keppel Integrated Engineering is presently constructing two wastewater treatment plants in Ho Chi Min City’s Tam Phuoc Industrial Zone and Loteco Industrial Zone.

Conclusion

Today’s ceremony provides further vindication of the strong commercial ties between Vietnam and Singapore. Going forward, Vietnam will continue to be one of Singapore's major markets for trade and investment in Southeast Asia.

In closing, I would like to wish the management of Keppel and PV Drilling continued success in the years ahead.

Thank you. 

[1] Vietnam’s top trading partner in 2006 was China. Source: Vietnam Ministry of Trade