Keppel Offshore & Marine Ltd’s wholly-owned subsidiaries, Keppel AmFELS, Inc., in Brownsville, Texas, and Keppel Shipyard Ltd, in Singapore, have been awarded contracts worth around SGD 75 million (about US$55 million) for the refurbishment and completion of two floating production units (FPU).
The Keppel AmFELS contract is with Salamanca FPS Infra, LLC for the refurbishment of a floating production unit to be operated by Covington. La., headquartered LLOG Exploration Offshore, LLC, a privately-owned exploration and production company focused on the deepwater Gulf of Mexico. The FPU will be created by the refurbishment of a former GOM production facility that was previously decommissioned.
Keppel AmFELS’ scope of work on the production facility includes demolition, hull modifications, and upgrades to key systems. Expected to be completed in 2Q 2024, the Salamanca FPU will have a capacity of 60,000 barrels of oil per day and 40 million cubic feet of natural gas per day. It will be deployed in the in approximately 6,400 feet of water of the Gulf of Mexico to service the Leon field and the Castile field.
POSITIVE ESG IMPACT
As the Salamanca FPU is being upgraded and modified from a previously decommissioned production facility, the time, cost and materials to be used are greatly reduced compared with the construction of a new facility. The project has a positive Environmental, Social and Governance (ESG) impact as it would reduce approximately 70% in carbon emissions compared to a newbuild, and also avoid the scrapping of an old unit.
Keppel Shipyard’s contract is with MODEC Offshore Production Systems (Singapore) Pte Ltd (MODEC) to support the completion of a floating production storage and offloading vessel (FPSO).
Keppel Shipyard’s scope of work is to complete the topsides integration work as well as supporting the pre-commissioning and commissioning activities for the FPSO. The vessel is expected to arrive at its Singapore yard in 4Q 2022.
When completed, the FPSO, which can process 100,000 barrels of oil per day and will be delivered to Woodside Energy (Senegal) B.V. (as operator of the Sangomar Field Development Phase 1). The FPSO will be moored in waters approximately 780m deep and will be located approximately 100km south of Dakar, Senegal.
“We are pleased that customers around the world come to us for upgrade, modification and completion projects, which attests to our strong execution capabilities and versatility in undertaking a variety of projects as well as providing value-added services,” said Chris Ong, CEO of Keppel O&M. “Such projects also underscore our expertise in advancing the circular economy through repurposing or rejuvenating existing vessels and renewing their lifespans. As the demand for energy increases and the market improves, we are committed to support the energy transition through our innovative solutions.”