Keppel secures FPSO, submersible barge contracts

October 13, 2014

Keppel secures FPSO, submersible barge contracts

SINGAPORE -- Keppel Offshore & Marine's wholly owned subsidiaries Keppel Shipyard and Keppel Nantong Shipyard have secured contracts from repeat customers worth a total of $122 million (S$153 million).

Keppel Shipyard's contract is for the conversion of an FPSO for Armada Cabaca Limited, a wholly owned subsidiary of Bumi Armada Berhad while Keppel Nantong's contract is to construct a submersible barge for Smit Shipping Singapore Pte Ltd.

Keppel Shipyard has commenced work on the FPSO conversion for Bumi Armada, which is scheduled to complete in 2Q 2016. The yard's work scope for this project includes refurbishment and life extension works, upgrading of living quarters to accommodate 100 personnel, installation and integration of an external turret mooring system and topside process modules.

The FPSO, which will have a storage capacity of 1.7 MMbbl, will be able to handle up to 80,000 bopd, 120,000 bpd of water injection, and 120 MMcfd of gas handling. Upon completion, the FPSO will be producing for the Angola Block 15/06 East Hub Project that is located 350 km northwest of Luanda, Angola.

Over in China, work has also commenced for the barge that Keppel Nantong is building for Smit Shipping.

The new barge, Giant 7, will be the third such unit to be delivered by Keppel to the marine services company. Giant 7 will join the first two units, Giant 5 and Giant 6, which are still undergoing construction, to be deployed in the Wheatstone project, 12 km west of Onslow off the Pilbara coast of Western Australia.

Giant 7 is slated to be completed in 2H 2015, while Giant 5 and 6 are on track for completion in end 2014 and early 2015, respectively.