Mr S. Iswaran at the Opening Ceremony of KS Energy Services’ Integrated Energy Services Hub

SPEECH BY MR S ISWARAN, SENIOR MINISTER OF STATE FOR TRADE & INDUSTRY AT THE OPENING CEREMONY OF KS ENERGY SERVICES’ INTEGRATED ENERGY SERVICES HUB ON 18 SEPT 2008, 1030AM AT 17 JURONG PORT ROAD 

Your Excellency Zanela Makina, High Commissioner of South Africa

Your Excellency Juan Jose Gomez, Ambassador of Mexico

Your Excellency Wardana, Ambassador of Indonesia

Mr Kris Wiluan, Chairman and CEO of KS Energy Services,

Distinguished Guests, Ladies and Gentlemen,

Introduction

Good morning. I am happy to be here today forthe Opening Ceremony of KS Energy Services’ Integrated Energy Services Hub.

The establishment of this Integrated Energy Services Hub affirms the significance of Singapore’s oil and gas industry, and the depth and breadth of our marine and offshore capabilities.

Vibrant Marine & Offshore Industry

Riding on the strong growth of the offshore oil and gas sector, our marine and offshore industry has, in recent years, recorded impressive performances.Last year, the sector achieved an output of S$12.8 billion, a substantial 27 per cent growth over 2006.

Today, besides being one of the world’s premier ship repair and ship conversion centres, Singapore is also a global leader in the building of jack-up rigs and the conversion of FPSO (Floating Production Storage and Offloading Platforms) units. We are also the largest manufacturer of offshore oil rigs, with a 70 per cent market share.This is a remarkable performance for an industry, which not too long ago, was deemed to be a “sunset” industry.

The outlook for the industry remains positive as the growth of the offshore oil and gas sector is likely to continue for the next few years.Leveraging on this, Singapore aspires to be an integrated marine and offshore hub, comprising world class shipyards, companies offering complex oil and gas systems, and components and offshore-related services.Companies here engage in a wide range of activities, such as manufacturing, headquarter services, training, research and development, engineering, regional distribution, and more.

KS Energy Services’ continued commitment to Singapore is an important contribution to our integrated marine and offshore hub.Its Integrated Energy Services Hub will enable cross-selling across its three business units which refurbish and charter rigs, offer drilling services, and distribute equipment.By moving up the value chain from being a rig refurbisher to a project manager, KS Energy will be able to offer its clients a complete solution.

Developing human resources for Singapore’s integrated marine hub

The higher level of business activity in the marine and offshore industry has resulted in a higher demand for workers.Total employment in the sector is now reaching 66,000.With the evolution of the marine and offshore industry, we are placing greater emphasis on knowledge, capital and innovation intensive activities - all of which require well trained and educated human resources.

To this end, the marine and offshore industry has been committed to enhancing the knowledge and skills of its workforce through training programs.The extensive range of training initiatives within the industry includes apprenticeship schemes, on-the-job training, classroom-based training and scholarships for higher studies and overseas attachment schemes, which helps develop talent and groom potential leaders.

Our educational institutions also play a key role in developing people for the industry.For example, both the National University of Singapore and the NanyangTechnologicalUniversity have final-year specializations and Master’s degree courses in Marine and Offshore Engineering. Graduates of our polytechnics also have opportunities to upgrade themselves with a university degree. Ngee Ann and Singapore Polytechnics are working with the University of Newcastle Upon Tyne, to roll out a full-fledged Bachelor’s degree in naval architecture and marine/ocean engineering, starting this month.

What this means is that KS Energy Services, and the marine and offshore industry in general, can look forward to a steady stream of skilled and knowledgeable graduates from these programs.I am also happy to hear that KS Energy Services will be setting up KS Technical Resources. When operational, the training provided by KS Technical Services will produce drillers qualified to drill in the North Sea, a harsh environment with one of the most stringent health and safety standards industry-wide.

Conclusion

Going forward, our marine and offshore industry will need to continue to position itself as a global centre for ship conversion, offshore construction and oilfield services. Singapore shipyards have, over the last three decades, gained prominence for quality, specialised services, timely delivery, a skilled and disciplined workforce and strong project management capabilities.The industry should leverage on these achievements and focus on more complex and high value projects to enhance its capability as a solutions provider.

The opening of KS Energy Services’ Integrated Energy Services Hub is yet another step in that direction.I congratulate the management and staff on achieving a new milestone.We look forward to a long and close association between KS Energy Services and Singapore to bring the industry to new heights.