Keppel seals offshore contracts worth $368m

The shipping giant enters Eurasian waters.

A tide of projects is rolling in for Keppel Offshore and Marine Ltd. The company announced today that its subsidiaries Keppel Shipyard and Keppel Singmarine have clinched contracts worth $368m.

Keppel Shipyard has secured a contract is for the conversion of a Floating Production Storage and Offloading (FPSO) vessel for its longstanding customer Armada Kraken Pte Ltd.

Meanwhile, Keppel Singmarine has secured a contract from Baku Shipyard LLC (Baku Shipyard) to design and carry out fabrication and outfitting works for a Subsea Construction Vessel (SCV). When finished, the SCV will be the company’s first creation to be deployed in the Caspian Sea.

According to Michael Chia, Managing Director (Marine & Technology), of Keppel O&M, “We are seeing an increasing demand for more sophisticated FPSOs which can operate in harsher environments, more challenging and deeper oil and gas fields. Keppel Shipyard, with its strong and established delivery track record of over 110 conversion projects to-date, is well-positioned to capture the growing FPSO opportunities and serve the evolving needs of this market."

Here’s more from the release:

The new FPSO will be a harsh-environment unit that is designed for operations in the North Sea under a stringent regulatory regime. Work has commenced and the FPSO is scheduled for delivery in 3Q 2015.

When completed, the FPSO will be capable of producing the heavy-oil (API degree 14) in the Kraken field, UK sector of the North Sea, over a period of 25 years.

In addition, the FPSO will be able to handle a peak fluid rate of 460,000 barrels per day (bpd) and 80,000 barrels of oil per day (bopd), 275,000 bpd of water injection, 20 million standard cubic feet (MMscf) of gas handling and has a storage capacity of 600,000 barrels.

Baku Shipyard, located in Baku, Azerbaijan, was jointly developed by Keppel O&M, State Oil Company of Azerbaijan Republic (SOCAR) and Azerbaijan Investment Company (AIC). Keppel O&M, SOCAR and AIC own 10%, 65% and 25% share in the yard respectively. Keppel O&M is responsible for the management and operation of the yard.

Keppel Singmarine's work scope includes the design of the vessel, the fabrication of the hull strips and outfitting them with equipment and systems at its yard in Singapore.

The hull strips will be shipped to Baku Shipyard for integration with other components fabricated by Baku Shipyard, and completion after commissioning works and sea trials. The SCV will be built to the proprietary design by Marine Technology Development, the ship design and development arm of Keppel O&M.