Keppel Fels signs heads of agreement to define Russian projects

KEPPEL Fels has signed a heads of agreement with Rosneft and MHWirth to define the anchor projects to be pursued by tripartite joint venture company Zvezda-Keppel Design and Engineering Center.

A Keppel spokesman confirmed the signing of the agreement to The Business Times following a press release issued by Rosneft on Thursday.

The spokesman qualified, however, that "discussions on potential projects are still at a preliminary stage and we are unable to disclose further details at this time".

He also emphasised the joint venture company will "adhere to the prevailing US and European Union sanctions ... in the conduct of its business and activities".

Rosneft on Thursday said the three named partners and their joint venture, Antares Singapore, signed the HOA defining anchor projects to be pursued by Zvezda-Keppel Design and Engineering Center.

"The primary focus of the centre, as agreed by the parties, will be offshore drilling rigs, to be built jointly by Keppel Fels and the Zvezda Shipbuilding complex in the Primorskiy region of the Russian Federation," Rosneft said.

Zvezda-Keppel Design and Engineering Center was established in the Russian Federation as a subsidiary of Singapore-based private limited liability company Antares Singapore.

The three partners behind Antares Singapore are Rosneft and Northstar Investments Pte Ltd, each with a 45 per cent stake, and Norwegian drilling solutions provider MHWirth with 10 per cent.

Northstar Investments was incorporated as a wholly-owned subsidiary of FELS Offshore Pte Ltd, which is in turn a subsidiary of Keppel Corp.