Keppel Shipyard – the wholly-owned subsidiary of Keppel Offshore & Marine – has been awarded contracts amounting to around $250 million from repeat customers.
These are for the conversion of a Floating Storage and Regasification Unit (FSRU), integration of a Floating Production Storage and Offloading (FPSO) vessel and the jumboisation of two Trailing Suction Hopper Dredgers (TSHD).
For instance, the FSRU, when completed, will be deployed in waters some 17 km southwest of the Port of Alexandroupolis, Northern Greece. It will have an overall annual delivery capacity of around 5.5 billion cubic metres, along with a peak send out of 22 million cubic metres per day.
Meanwhile, the FPSO contract, which is between Keppel Shipyard and MODEC Offshore Production Systems, will involve the installation and integration of topside modules on board the Bacalhau FPSO.
The yard’s scope of work will also include the fabrication of a flare tower and two crane pedestals, the assembly and installation of two crane decks as well as the completion and commission support for MODEC.
Upon completion, the FPSO will be deployed to serve in the Bacalhau field located in the Santos Basin in offshore Brazil, for Equinor and its field partners.
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The FPSO will have a minimum storage capacity of 2 million barrels of crude oil, making it one of the largest FPSOs to be delivered in Brazil.
It will be capable of producing up to 220,000 barrels of crude oil in a day while producing and injecting up to 530 million standard cubic feet of associated gas daily. It will also be able to inject up to 200,000 barrels of seawater daily.
Meanwhile, Keppel Shipyard’s jumboisation of TSHDs will support the construction and maintenance of ports and waterways, coastal protection against rising sea levels and land reclamation for growing population.
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Chor How Jat, managing director (conversions & repairs) at Keppel O&M is heartened that the company managed to secure contracts from repeat customers amidst the challenges imposed by the pandemic.
“This is testament to our customer-focused mindset and execution expertise which enable us to consistently provide quality, reliable and value-added solutions for customers,” he added in a regulatory filing on Feb 9.
The company that the contracts are not expected to have any material impact on the net tangible assets and earnings per share of Keppel Corp in the current financial year.
Shares in Keppel Corp closed up 3 cents or 0.50% at $6.40 on Feb 9, before the announcement.
Cover image: file photo
