Keppel Wins $88.5M in Floating Production Contracts
Keppel Offshore & Marine Ltd (Keppel O&M)'s local and overseas subsidiaries continue to win support from repeat customers by securing four contracts worth a total of about $88.5 million.
In Singapore, Keppel O&M's wholly-owned subsidiary Keppel Shipyard Ltd (Keppel Shipyard) 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 (Bumi Armada); the second is for a Floating Production Storage and Offloading (FPSO) vessel awarded by Yinson Production (West Africa) Pte Ltd (Yinson), a wholly-owned subsidiary of Yinson Holdings Berhad.
Work on the LNG FSU conversion for Bumi Armada is scheduled to be completed in 3Q 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 1Q 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.
As for Keppel O&M's overseas yards, Keppel FELS Brasil SA's (Keppel FELS Brasil) BrasFELS shipyard in Rio de Janeiro, Brazil, secured a FPSO integration contract awarded by MODEC Offshore Production Systems (Singapore) Pte Ltd. (MODEC), while Caspian Shipyard Company LLC (Caspian Shipyard Company) in Baku, Azerbaijan, secured a barge enhancement contract awarded by BP Exploration (Shah Deniz) Limited (BP), 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 2Q 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.
