22 March 2007

Professor Tan Chorh Chuan, Deputy President and Provost of National University of Singapore

Professor Chong Tow Chong, Executive Director, Science and Engineering Research Council, A*STAR

BG Tay Lim Heng, Chief Executive, Maritime and Port Authority of Singapore

Mr Manohar Khiatani, Assistant Managing Director, Economic Development Board

Distinguished Guests,

Ladies and Gentlemen,

1.I am very pleased to be here today to witness the Launch of the Offshore Technology Research Programme at the Centre for Offshore Research and Engineering hosted by the National University of Singapore.

Strong Growth of the Offshore and Marine Engineering Sector

2.Offshore and Marine Engineering (OME) is an important sector in our national economy.The OME sector, together with the Port and Shipping sectors, are the main contributors to the Singapore Maritime Cluster (SMC).Collectively, these three sectors account for more than 80% of the revenues, value-add and employment of the SMC.

3.The OME sector has done exceptionally well during the last few years. The current OME industry-wide order book is at a historical high, reportedly with projects lined up to 2010.

4.Today, Singapore's OME industry has earned itself the position of global leader, commanding about 80% of the world's jack-up rig orders, and 70% of the market share in the conversion of specialised Floating Production Storage and Offloading or FPSO platforms.Singapore has also established itself as a centre for the repair of a wide range of vessels, especially the more complex and sophisticated ships, and a niche builder of specialized ships.

5.Singapore has steadily evolved into a leading location for offshore engineering and research, with world leaders in this area significantly stepping up their presence and activities here.A number of these global offshore engineering companies have set up or have plans to establish research centres here and collaborate with the local tertiary and research institutes.Many of these companies are present in the audience today.

Importance of R&D to Fuel Future Growth

6.While our OME sector has established a niche in the current offshore market, it must look beyond its current capabilities and products to stay relevant and remain at the top.It is thus essential to invest in R&D, especially in areas that can overcome future challenges faced by the global offshore oil and gas industry.Some of these technological challenges include the extraction of oil and gas from marginal fields and the development of oil and gas fields in deeper waters and in the arctic regions where climatic conditions are extreme.

7.I strongly commend the Agency for Science, Technology and Research, Maritime and Port Authority of Singapore, Economic Development Board and the National University of Singapore for recognizing the strategic importance of OME R&D and its strong potential for growth. With that in mind, I am happy to note that the collaborative multi-agency approach in driving offshore technology research has led to the birth of an Offshore Technology Research Programme.

8.Further to the establishment of the national program, both A*STAR and MPA have also each set aside S$5 million to fund the R&D undertaken in this Program.The program will adopt an integrative systems approach to ensure that topics selected are targeted at challenges and be of practical use to industry.It will focus on four thrust areas: (i) Fixed platforms, (ii) Floating Production Systems, (iii) Subsea Systems and (iv) Seafloor and Sub-surface Engineering.

9.The launch of the Offshore Technology Research Programme today will place CORE as the national focal point for offshore technology R&D and education, and will involve local R&D powerhouses and tertiary institutes - the Research Institutes of the Science and Engineering Research Council of A*STAR as well as Nanyang Technological University.
 

Serving the Industry

10.The existing repertoire of resources, infrastructure and technical know-how within the Tertiary and Research Institutes is the foundation upon which the Offshore Technology Research Program will strive to enhance and consolidate. The parties will work together to capture a holistic value chain of activities that draws on basic research and capability development to leapfrog the outflow of technology to industry.

11.The relevance of the Offshore Technology Research Programme to the industry is evident in the participation garnered from the industry; I am delighted to know that several major companies in the OME sector, such as Keppel Offshore and Marine, SembCorp Marine, Lloyd's Register, American Bureau of Shipping, Cameron, J Ray McDermott Asia Pacific and WorleyParsons, are present today to sign MOUs with CORE. This reflects a strong show of endorsement and commitment by the industry to Offshore R&D in Singapore.

Conclusion

12.Ladies and Gentlemen, it is indeed my pleasure to witness the signing of MOU between A*STAR, EDB, MPA and NUS and MOUs between CORE and each of its industry partners this morning.I am confident that this industry-government collaboration will strengthen and reinforce CORE's value to the industry.I wish you all a fruitful partnership.Thank you