Keppel clinches new batch of contracts worth $219 million

Singapore’s Keppel Offshore & Marine has clinched contracts worth a combined value of about S$300 million ($219M).

The contracts are for the design and construction of an ice-class LNG bunker vessel, refurbishment of an FPSO vessel, and 65 scrubber retrofit projects.

They were won through Keppel’s wholly-owned subsidiaries, Keppel Singmarine and Keppel Shipyard, the company said on Wednesday.

Chris Ong, CEO, Keppel O&M, said, “These new contracts are a testament to Keppel O&M’s expertise in the building, upgrading and conversion of a wide range of vessels. They also extend our track record in refurbishment and modification projects, which are a core part of our business.”

The first contract is by Keppel Singmarine with Shturman Koshelev for the design and construction of an ice-class LNG bunker vessel. When completed in 4Q 2020, the vessel will be chartered to Gazpromneft Marine Bunker for operations in the Baltic Sea. The contract complies with applicable sanctions.

The vessel will be built to the MTD 5800V LNG design, a proprietary design of Keppel O&M’s ship design and development arm, Marine Technology Development (MTD), and it will have an Ice Class Arc 4 notation and a cargo capacity of 5800 m3.

Keppel O&M has delivered 11 ice-class vessels to-date and is currently building LNG-fueled vessels including South East Asia’s first LNG bunkering vessel.

FPSO delivery by 2020-end

The second contract is by Keppel Shipyard with a global operator of floating production vessels for the fabrication of a new aft hull for an FPSO. Keppel Shipyard will be responsible for the design of the aft hull, procurement of equipment, as well as fabrication, outfitting, integration and commissioning work on board the existing FPSO. The installation will also include a new accommodation block which can accommodate up to 140 personnel.

Work on the FPSO, which has already arrived in the shipyard in preparation for the upgrade, is scheduled to start in 1Q 2019. Delivery of the FPSO is expected by the end of 2020.

Separately, Keppel Shipyard has recently secured a total of 65 contracts from a variety of customers for exhaust gas scrubber retrofit projects involving project management, integration design engineering, installation and retrofitting, as well as testing and commissioning works.