Keppel O&M secures $140mln worth of contracts

One deal is for a Floating Production Storage and Offloading facility which, when completed, will be able to produce up to 45,000 barrels of oil per day and store 1,000,000 barrels of oil.

Keppel Offshore & Marine Limited's subsidiary Keppel Shipyard will undertake the upgrading and conversion of a Suezmax tanker into an FPSO for repeat customer Bumi Armada Berhad. Work on the facility, expected to commence in the second quarter of 2010, includes refurbishment and life extension works; fabrication and installation of accommodation blocks, turret support structure and topside modules; upgrading of auxiliary support systems; and installation of owner supplied equipment. The converted FPSO will be deployed in the Te Giac Trang oil field in Vietnam for Hoang Long Joint Operating Company.

Meanwhile Keppel FELS and Keppel Verolme have each secured the repair and modification of a semisubmersible from Stena Drilling. The one for Keppel FELS is due to arrive in April 2010 and will involve a Special Periodic Survey, main engine replacements and mooring winch system upgrade. Expected to be completed in June 2010, the semi will return to its deployment in Perth Australia for Apache Corporation.

Keppel Verolme, on the other hand, will be in charge of the repair and maintenance of Stena Don, a 3,700 deadweight tonne dynamically positioned drilling semi. Scheduled for completion in the second quarter of 2010, the work involves overhauling thrusters and upgrading the drilling rig capabilities by installing four blisters and two sponsons.

The contracts, however, 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.