DECEMBER 29, 2015 — Keppel Offshore & Marine Ltd reports that subsidiaries have secured four contracts from repeat customers worth a total of about S$125 million (about US$89 million).
In Singapore, Keppel O&M's wholly-owned subsidiary Keppel Shipyard Ltd secured two conversion contracts - the first is for a Liquefied Natural Gas (LNG) Floating Storage Unit (FSU) vessel, awarded by Armada Floating Gas Storage Limited, a wholly-owned subsidiary of Bumi Armada Berhad; the second is for a Floating Production Storage and Offloading (FPSO) vessel awarded by Yinson Production (West Africa) Pte Ltd, a wholly-owned subsidiary of Yinson Holdings Berhad.
Outside Singapore, BrasFELS, Keppel FELS Brasil SA's shipyard in Rio de Janeiro, Brazil, has secured a FPSO integration contract awarded by MODEC Offshore Production Systems (Singapore) Pte Ltd. (MODEC), while Caspian Shipyard Company LLC in Baku, Azerbaijan, has secured a barge enhancement contract awarded by BP Exploration (Shah Deniz) Limited (BP), operator of the Shah Deniz gas field development.
Work by Keppel Shipyard on the LNG FSU conversion for Bumi Armada is scheduled to be completed in third quarter 2016. On completion, the LNG FSU vessel will operate at the Delimara LNG Regasification Terminal in Malta.
Work on the FPSO conversion for Yinson is expected to commence in first quarter 2016. The scope includes modification work, new equipment installation complete with associated piping, electrical and instrumentation systems as well as installation and integration of the FPSO process topsides. On completion, the FPSO will be deployed to the Offshore Cape Three Point block located in offshore Ghana.
"Even in challenging market conditions, we are glad to be the choice yard for operators," said Keppel O&M CEO Mr. Chow Yew Yuen. "This is the fourteenth conversion/upgrading project that we are undertaking for Bumi Armada. It is also their first LNG FSU conversion project and we are proud to be their trusted partner again. The confidence shown in us is a reflection of Keppel's proven track record in delivering quality products competitively, with high standards of safety and to customers' satisfaction.
"We are also grateful for the opportunity to support Yinson again on a conversion project. Having worked with them on an FPSO project in 2012, we will be able to leverage the past experience and close relationship to fast track this project to meet their requirements."
In Brazil, BrasFELS' MODEC contract will see it carry out integration and commissioning works on the FPSO vessel Cidade de Caraguatatuba MV27, which is to be deployed in the Lapa field, Santos Basin, Brazil. It will arrive at BrasFELS from Keppel Shipyard in second quarter 2016. In the past five years, BrasFELS has successfully completed five FPSO projects safely and ahead of schedule, three of them for companies affiliated to MODEC.
In Azerbaijan, the BP project will see Caspian Shipyard Company be strengthening the steel structure of the hull of STB-1 Vessel, a purpose-built jacket transportation and launch barge. This is the third time that Caspian Shipyard Company has been chosen to carry out refurbishment or enhancement works for STB-1 Vessel. Once the hull strengthening work is completed, STB-1 Vessel will be deployed to transport and launch two jackets for the Stage 2 development of the Shah Deniz field.