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Keppel wins $74.7 million FPSO conversion deal

November 26, 2020

Singapore’s offshore rig and vessel builder Keppel Offshore & Marine Ltd (Keppel O&M) has won a contract from a repeat customer worth about S$100 million ($74.7M) for the fabrication and integration work on a floating production storage and offloading vessel (FPSO).

Keppel O&M said on Thursday that the contract was won by its wholly-owned subsidiary Keppel Shipyard.

Scheduled for delivery in the fourth quarter of 2022, Keppel Shipyard’s scope of work includes the fabrication, installation, and integration of topside modules, riser balconies, and spread mooring support structures, as well as supporting the customer on pre-commissioning and commissioning work.

Ahead of the FPSO’s arrival in the yard, Keppel Shipyard will begin with pre-fabrication work on the topside components in the first quarter of next year.

Chor How Jat, managing director of conversions and repairs at Keppel O&M, said: “We are pleased to secure our 140th conversion project to help meet the world’s need for energy.

“As the world’s leader in FPSO conversion and integration projects, we have built up strong capabilities to add value to our customers’ projects and efficiently deliver high-quality FPSOs, while contributing to the circular economy with our conversion solutions.

“With the challenges posed by Covid-19, the health and safety of our workforce is paramount. We have put in place measures to safeguard our people and maintain our operations to ensure that each project entrusted to us is delivered as planned”.

When completed, the FPSO will be capable of producing 220,000 barrels of oil per day and have an associated gas treatment capacity of 400 million cubic feet per day.

According to the company, the above contract is not expected to have a material impact on the net tangible assets or earnings per share of Keppel Corporation for the current financial year.

It is worth reminding that Keppel Corporation decided to review its offshore & marine business back in September as part of its overall strategy and roadmap amid the sector’s challenging environment.

The post Keppel wins $74.7 million FPSO conversion deal appeared first on Offshore Energy.