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Home Middle East & South Asia

Keppel O&M secures contracts worth $88 million from repeat customers

Yuvraj_ong by Yuvraj_ong
December 31, 2015
in Middle East & South Asia, News, Upstream
0

Keppel Offshore & Marine Ltd (Keppel O&M)’s local and overseas subsidiaries have won strong support from repeat customers by securing four contracts worth a total of about $88.57 million (S$125 million).

In Singapore, Keppel O&M’s wholly-owned subsidiary Keppel Shipyard secured two conversion contracts – the first is for a 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 FPSO vessel awarded by Yinson Production (West Africa), a wholly-owned subsidiary of Yinson Holdings Berhad.

Work on the LNG FSU conversion for Bumi Armada is scheduled to be completed in third quarter of 2016. Upon completion, the LNG FSU vessel will operate at the Delimara LNG Regasification Terminal in Malta.

As for the FPSO conversion for Yinson, work is expected to commence in first quarter of 2016. The work 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. Upon completion, the FPSO will be deployed to the Offshore Cape Three Point block located in offshore Ghana.

Chow Yew Yuen, CEO of Keppel O&M, said, “Even in challenging market conditions, we are glad to be the choice yard for operators. This is the 14th 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.”

As for Keppel O&M’s overseas yards, Keppel FELS Brasil SA’s BrasFELS shipyard in Rio de Janeiro, Brazil, secured a FPSO integration contract awarded by MODEC Offshore Production Systems (Singapore), while Caspian Shipyard Company in Baku, Azerbaijan, secured a barge enhancement contract awarded by BP Exploration (Shah Deniz), operator of the Shah Deniz gas field development.

For MODEC’s contract, BrasFELS will be carrying out integration and commissioning works on the FPSO vessel, Cidade de Caraguatatuba MV27. Cidade de Caraguatatuba MV27, which is to be deployed in the Lapa field, Santos Basin, Brazil, will depart from Keppel Shipyard and arrive at BrasFELS in second quarter of 2016. In the past five years, BrasFELS has successfully completed five FPSO projects safely and ahead of schedule, of which three were for companies affiliated to MODEC.

For BP’s contract, Caspian Shipyard Company will 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.

Chow said, “With our wide spectrum of offshore and marine solutions, we are able to serve the various needs of the industry, be it in oil production or offshore support services. Leveraging our long track record in delivering projects on time and within budget, we will continue building on the good relationships formed over the years with our existing global network of customers to support them in their operations.”

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