SPEECH BY MR S ISWARAN, SENIOR MINISTER OF STATE FOR TRADE & INDUSTRY AND EDUCATION, AT KEPPEL FELS’ RIG NAMING CEREMONY FOR PV DRILLING II AND PV DRILLING III ON 9 SEPTEMBER 2009 AT 9.30AM

Mr Dinh La Thang, Member of Party Central Committee and Chairman of Petro Vietnam;

Mr Ngo Van Sang, Director General of Oil & Gas Department;

Mr Le Nhu Linh, Chairman of PV Drilling;

Mr Do Van Khanh, CEO of PV Drilling;

Mr Choo Chiau Beng, Chairman of Keppel Offshore & Marine;

Distinguished Guests

Ladies and Gentlemen;

Good morning.

Introduction

It is my pleasure to join all of you today to celebrate the naming of PV Drilling II and PV Drilling III. I would also like to extend a warm welcome to our guests from Vietnam.

Excellent bilateral economic ties

Vietnam and Singapore enjoy excellent ties and broad-based co-operation in many areas.

For example, the Singapore-Vietnam Connectivity Framework has developed into a key pillar of our bilateral economic relationship.We have achieved good progress across all six sectors of cooperation - finance, education and training, investment, information technology and telecommunications, trade and services, and transportation

The early completion and delivery of PV Drilling II and III marks yet another milestone in the deepening relationship between our two nations. It will put Singapore’s maritime cluster in good stead to support Vietnam’s growing oil and gas sector.

Strengths of Singapore’s marine and offshore industry

Today’s naming of the twin rigs once again underscores the strengths and capabilities of Keppel and Singapore’s marine and offshore industry. Our shipyards have long established a strong reputation for quality and timeliness.They have also gained prominence for their ability to offer specialised services and handle sophisticated projects. This is testament to the skilled and disciplined workforce, as well as the strong project management capabilities within the industry.

Singapore’s marine industry can seize opportunities amidst challenging times

Since the 1970s, Singapore’s marine and offshore industry has weathered several challenging cycles, and it has always reinvented itself to emerge stronger and more resilient. Today, we are a leading ship repair centre and the top offshore rig builder in the world. Last year, the industry achieved a record output of S$17.8 billion, an 8.6% increase over 2007. The industry employed some 69,000 workers, up by 8.5% from 2007.

Due to the global economic slowdown, the marine and offshore industry has been affected by volatile oil prices and weaker shipping volumes. However, growth opportunities still exist. Today’s naming event for Keppel and Vietnam-based PV Drilling is a good example of how companies can place renewed emphasis on their pursuit of overseas market opportunities and fostering new partnerships. They should also continue to upgrade their capabilities in order to seize available opportunities.

Upgrading our capabilities in the marine and offshore sector

Singapore’s strong position in the marine and offshore industry puts us in good stead to turn adversity into opportunity. We aim to differentiate ourselves by being an integrated marine hub that offers world-class shipyards with leading-edge capabilities. We also deliver comprehensive marine-related services, such as classification, naval architecture and marine engineering services. Singapore strives to be a compelling location for the design and manufacturing of complex marine systems and components, as well as marine R&D activities. 

We will do so by continuing to build up new capabilities in design and engineering, helping the industry upgrade its skills base and develop its workforce, as well as investing in infrastructure and restructuring ourselves to offer more value. This will prepare us well for the upturn when it comes, and extend Singapore’s leadership position into the coming decade.

Conclusion

In closing, I would like to congratulate the management and staff of Keppel and PV Drilling on the successful completion and naming of PV Drilling II and PV Drilling III. It is the result of your hard work and I wish all of you continued success in the years ahead.Thank you.