SPEECH BY MR S ISWARAN, MINISTER, PRIME MINISTER’S OFFICE AND SECOND MINISTER FOR HOME AFFAIRS AND TRADE & INDUSTRY AT THE KEPPEL FELS’ NAMING CEREMONY FOR PV DRILLING V ON SATURDAY, 1 OCTOBER 2011, 0930 HRS AT GUL ROAD

His Excellency Le Duong Quang, Vice Minister of Industry and Trade, Vietnam

His Excellency Chu Ngoc Anh, Vice Minister of Science and Technology, Vietnam

Mr Do Van Hau, President & CEO of PetroVietnam

Mr Do Duc Chien, Chairman of PV Drilling

Mr Pham Tien Dung, CEO of PV Drilling

Dr Lee Boon Yang, Chairman of Keppel Corporation

Mr Choo Chiau Beng, Chairman of Keppel Offshore & Marine

Distinguished Guests, Ladies and Gentlemen

Good morning.

Introduction

Two years ago, I had the pleasure of officiating at the naming of PV Drilling II and PV Drilling III.I am pleased to join you once again to commemorate the naming of PV Drilling V and, in this regard, to mark another milestone in the deepening ties between Vietnam and Singapore, and the growing partnership between PV Drilling and Keppel.

Singapore’s Global Leadership in Marine & Offshore

Singapore has established itself as a global leader in the marine & offshore industry. We produce about 70 per cent of the world’s jack-up rigs, and also convert 70 per cent of the world’s Floating, Production, Storage and Offloading (FPSO) vessels.

The successful delivery of the PV Drilling V underscores the strengths and capabilities of Keppel, and Singapore’s marine and offshore industry. Over the years, our shipyards have established a global reputation for quality and reliability. We have also differentiated ourselves with the ability to offer customised solutions and handle sophisticated turnkey projects with complex requirements.

Continual Investments in R&D and Productivity to Maintain Our Competitive Edge

To stay ahead of the competition and to maintain our leadership position, we need to continue to build on our capabilities in research & development (R&D).A case in point is Keppel’s commitment to R&D, with three technology divisions and a corporate R&D centre focused on product and process innovation. The PV Drilling V is testament to the success of these efforts.I understand that the rig was built to Keppel’s award-winning semi-submersible drilling tender design that was conceptualised and developed in Singapore.

In addition to technological innovation, it is also important for our shipyards to continually enhance productivity. Singapore’s land and labour constraints impel us to constantly think out of the box for innovative solutions, and continually train and upgrade our talent pool to maintain our competitive edge.

Strong Prospects for the Singapore Marine & Offshore Industry

The long-term prospects for this sector are bright. Recently, we have witnessed many marine & offshore companies locating their headquarters in Singapore, and establishing research and engineering operations here. Our local shipyards have also been steady in securing new orders from the offshore sector. In fact, I am told that Keppel is on course to deliver 21 rigs in 2013, beating its previous record of 13 rigs in 2009.

This is encouraging news to students and recent graduates from our universities. The marine & offshore industry offers many opportunities in engineering, as well as R&D, to develop complex and sophisticated products such as the PV Drilling V. Every year, we have about 200 students graduating from marine & offshore-related courses in Singapore. At the postgraduate level, there are newly established programmes in Offshore Technology and Naval Architecture & Marine Engineering. These current and new courses will ensure a robust pipeline of talent for the industry.

Through continual investments in R&D and talent, we aim to build leading-edge capabilities in ship and rig design, engineering and building. I look forward to the industry and government working together towards our vision of making Singapore a truly integrated global marine & offshore hub; one that offers a comprehensive ecosystem of shipyards, marine and oil & gas equipment companies, as well as services such as classification, naval architecture and marine & offshore engineering.

Conclusion

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