Keppel Offshore & Marine Ltd’s (Keppel O&M) subsidiaries Keppel Shipyard Ltd (Keppel Shipyard) and Keppel Nantong Shipyard Co. Ltd (Keppel Nantong) have secured five contracts worth about S$150 million (approx. USD 119 million) in total.
Mr Michael Chia, MD (Marine and Technology) of Keppel O&M, said, “We are glad to have the support of repeat and new customers for a range of offshore and marine projects. Keppel Shipyard’s latest contracts bear testament to its extensive expertise and experience in Floating Production Storage and Offloading (FPSO) and Floating Storage and Offloading (FSO) conversion, upgrading and repair works. Meanwhile, Keppel Nantong’s two new projects reflect its growing newbuilding and fabrication capabilities.”
Keppel Shipyard’s contracts are FPSO and FSO projects from Armada C7 Pte Ltd, (Armada C7), a joint venture company of Bumi Armada Berhad (Bumi Armada) and Shapoorji Pallonji Group (SP); Apache Energy Limited (Apache Energy); and EMAS AMC Pte Ltd (EMAS AMC).
Keppel Shipyard has commenced work on the Armada C7 project, which is scheduled to complete in 3Q 2014. Keppel Shipyard’s work scope includes refurbishment and life extension works, upgrading of living quarters to accommodate 70 personnel, fabrication and installation of an internal turret mooring system as well as the installation and integration of topside process modules.
With an oil production capacity of 26,500 barrels of oil per day (bopd) and storage capacity of 510,000 barrels (bbl), the FPSO will support India’s national oil company Oil and Natural Gas Corporation Limited’s operations in the Cluster 7 field, located in the west coast of Mumbai, India.
For the contract with Apache Energy, Keppel Shipyard will carry out steel and piping systems renewal, coating works, equipment overhauling, and installation of new equipment on FPSO Ningaloo Vision.
Pre-fabrication work for this FPSO project has already started. The vessel is expected to arrive at the yard in 1Q 2014. After repair and rectification works, FPSO Ningaloo Vision will return for operations in the Van Gogh field, located in the Exmouth Basin, offshore Northwest Australia.
As for the contract with EMAS AMC, a subsidiary of EZRA Holdings, Keppel Shipyard will undertake the fabrication of an external turret for an FSO unit.
Work has commenced and the turret is scheduled for completion in 2Q 2014. Upon completion, the turret will be delivered to STX Offshore & Shipbuilding Co Ltd in Korea for integration with the newly built FSO. The FSO will be deployed in West Africa.
Over in China, Keppel Nantong has secured two contracts from Smit Shipping Singapore Pte Ltd, a wholly-owned subsidiary of Royal Boskalis Westminster Group, to undertake the construction of two submersible barges.
Work for both barges, Giant 5 and Giant 6, is scheduled to commence in1Q 2014. Giant 5 is slated to be completed by end 2014, while Giant 6 is expected to be completed in early 2015. When completed, the barges will be deployed in Europe.
With the latest contracts, Keppel O&M has secured almost S$7 billion in new orders year-to-date.
The above contracts are not expected to have any material impact on the net tangible assets and earnings per share of Keppel Corporation Limited for the current financial year.
Keppel O&M, December 16, 2013