New FPSO work secured by Keppel FELS for Brazil

Gold-star-1Singapore's Keppel Offshore & Marine Ltd (Keppel O&M), through its subsidiary Keppel FELS Brasil, announced today that it had secured two contracts totalling R$500 million (approx. S$381.4 million) for Floating Production storage and Offloading (FPSO) units.  The contracts were signed with Single Buoy Moorings Inc. (SBM), and another from the joint venture company MODEC and Toyo Offshore Production Systems (MTOPS).

Chow Yew Yuen, President (The Americas) of Keppel O&M, said, "Keppel has worked closely with various international drillers and fleet owners operating in Brazil for some 30 years. Today, in replicating Keppel O&M's proven systems and practices in Brazil, we are able to offer a full range of offshore solutions in construction, conversion, repair and modification, as well as the fabrication and integration of production topsides, among others.

"We are heartened that SBM and MTOPS have reaffirmed our position as the choice solutions partner in Brazil's offshore and marine industry with these contracts to fabricate and integrate modules for their latest FPSOs. As we grow our competencies and track record as the most established shipyard in Latin America, we will continue to nurture win-win relationships with our valued customers. We see the market improving and our yard has the capacity and capability to take on more jobs."

Keppel FELS Brasil's contract with SBM is for the fabrication and installation of topside modules on the Floating Production Storage and Offloading (FPSO) vessel Cidade De Paraty, which was awarded in association with Queiroz Galvão Óleos e Gás S.A. (QGOG) and is currently undergoing conversion at Keppel Shipyard in Singapore.

Chow added, "Like our recent delivery of P-57, this project demonstrates the synergy of the Keppel O&M shipyards in providing a comprehensive suite of services to our customers and brings to bear our near market, near customer strategy."

Just a day prior to the announcement of the two FPSO contracts, Keppel FELS in Singapore reported that the Alpha Star, the second of two DSS 38 semi-submersible drilling rigs, was expected to be delivered ahead of schedule to QGOG.

Keppel FELS was awarded a total of S$40,000 in safety bonuses from QGOG for the strong safety performance during the construction phase. The rig has been chartered by Petrobras for six years to support exploration and production activities offshore Brazil.
Th first DSS 38 semi-submersible, the Gold Star (shown in thumbnail photo), was built by Keppel FELS and went to work for Petrobras in 2010.

Tong Chong Heong, CEO of Keppel FELS' parent company, Keppel Offshore & Marine, said, "The Alpha Star is a shining example of great teamwork and reflects a complete alignment of goals and priorities between Keppel FELS and QGOG. Together, we have successfully achieved an efficiency boost of 20% on this second rig, without compromising the safety of our people and workplace.

Jointly developed and owned by Keppel's Deepwater Technology Group and Marine Structure Consultants, the DSSTM 38 design is in the league of some of the world's most advanced drilling semisubmersibles.

DSS 38 is rated to drill 30,000 feet below mud line in over 9,000 feet water depth. It has an operational displacement of over 38,000 tonnes and can accommodate 130 men. It also features both vertical and horizontal riser storage and is configured with eight 3,000 kW azimuth thrusters to keep the rig in position.
Designed to maximise uptime with reduced emissions and discharges, a DSS 38 rig is well-suited to handle the operational requirements in the deepwater "Golden Triangle" region, which comprises Brazil, Africa and the Gulf of Mexico.

Meanwhile, the new FPSO work for SBM is expected to commence at Keppel FELS Brasil's BrasFELS shipyard in Angra dos Reis, Rio de Janeiro in the first quarter of 2011. The vessel is scheduled to arrive in the first quarter of 2012 with delivery in the fourth quarter of 2012.

The work scope will include the fabrication and installation of six process modules and a riser gantry as well as the installation and integration of another six process modules supplied by SBM.
The FPSO Cidade de Paraty will be deployed in the pre-salt region of the Santos Basin and will have a production capacity of 120,000 barrels of oil per day (bopd), and be able to compress 5 million cubic metres of gas per day.

In its contract with MTOPS, a joint venture company between MODEC and Toyo Engineering Corporation, BrasFELS will undertake the module fabrication and integration of the FPSO Cidade de Sao Paulo MV23, which was awarded in association with Schahin Engenharia S.A.
Work is expected to begin at BrasFELS in the first quarter of 2011. The yard's scope includes the fabrication of topsides modules such as riser manifolds, laydown areas and the flare tower, as well as the assembly and integration of fabricated pancakes/skids.

To be completed in the fourth quarter of 2012, the FPSO will be deployed in the pre-salt region of the Santos Basin. The FPSO will have a production capacity of 120,000 bopd, and be able to compress 180 million cubic feet of gas per day and store 1,600,000 barrels of oil. 

Ongoing at BrasFELS is the upgrading and repairing of Noble's Brazil-based drillships with delivery stretching into 2012.


February 13, 2011

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