With the financial strength of being a Singapore GLC, Keppel Corporation is reported to be close to getting an order to build 'Early Warning Radar Defense System' on board semi-submersibles.
Keppel is known for their specialty in the building of semi-submersible rigs, jack-ups, and platforms for the Oil Industry.
Did Keppel build the radar platform on Pedra Banca too ?
Keppel's US unit close to bagging defence deal
SINGAPORE conglomerate Keppel said yesterday that its United-States subsidiary, Amfels, is nearing the end of talks to secure a potentially lucrative defence contract with the US.
'Amfels is in the final stages of negotiations with Boeing,' a Keppel spokesman told AFP, declining to disclose more details.
The spokesman was asked about a report in oil and gas publication Upstream saying that Amfels had been awarded a contract to outfit a baredeck semi-submersible hull that will be used as a radar outpost for the US government's missile defence system.
When completed, the semi-submersible is to be deployed in the Pacific Ocean to be used as an early detection facility for missiles fired from North Korea, the report said.
Singapore's DBS Vickers Securities, which cited the Upstream report, said that Texas-based Amfels is involved only in the building of the hull and integration of the systems.
It estimated Amfel's portion to be worth between US$100 million (S$173.5 million) and US$150 million out of the total project cost of US$500 million. The project is expected to be completed by 2006.
'We expect margins to be in line with the group's offshore division margins,' DBS Vickers said.
Amfels' forte is in building jack-up rigs for the oil and gas industry and the reported contract for the radar outpost is its first venture related to defence, it said.
Keppel Corp, which has interests in offshore and marine engineering and is on track to achieve its projected target of US$1.5 billion worth of contracts this year, saw its shares close unchanged at $5.70 yesterday.