Keppel bags nearly $96 million in new contracts

Singapore’s Keppel Offshore & Marine (Keppel O&M) has secured contracts from repeat customers worth approximately S$130 million ($95.8M) for a newbuild dredger and the modification of a Floating Production Storage and Offloading (FPSO) vessel.

The contracts were secured through Keppel’s wholly-owned subsidiaries, Keppel FELS and Keppel Shipyard, the company said on Tuesday.

Chris Ong, CEO of Keppel O&M, said, “We are pleased to secure these contracts from repeat customers as it reflects the market’s confidence in Keppel O&M’s customized solutions for newbuild vessels and FPSO conversions. This is the third newbuild dredger for Van Oord and the third FPSO project for Yinson.”

The first contract is between Keppel FELS and Van Oord to build a high-specification Trailing Suction Hopper Dredger (TSHD). This follows from an option granted to Van Oord based on earlier contracts entered in May 2018 for two similar dredgers.

Expected to be completed in 1Q 2022, the TSHD will have a hopper capacity of 10,500m3. The dredger will be built to the requirements of classification society Bureau Veritas (BV) and will be LNG ready.

FPSO upgrade

The second contract is between Keppel Shipyard and Yinson Nepeta Production Ltd, a wholly-owned subsidiary of Yinson Production, for the fast-track modification and upgrading of FPSO Allan. Keppel Shipyard’s scope of work includes refurbishment and life extension works, fabrication and installation of a new riser balcony, spread mooring system and helideck, as well as modification of the vessel’s topsides and marine systems.

The project for Yinson is scheduled to start in 3Q 2019 with delivery expected in 1Q 2020. Upon completion, the FPSO will have a storage capacity of 700,000 barrels of oil and a processing capacity of 60,000 barrels of oil per day. It will be deployed in the Anyala and Madu fields, offshore Nigeria for First Exploration and Petroleum Development Co Ltd.

Eirik Barclay, CEO of Yinson Offshore Production, said, “We have chosen to partner with Keppel Shipyard for this fast-track upgrade project just as the market is showing a positive trend with an increasing number of both project awards and tenders. We very much look forward to working with Keppel on this project and are confident that they, once again, can provide a high-quality, safe and on-time delivery to Yinson.”

It is also worth reminding that, earlier this year, Scana Offshore received a contract award from Yinson to upgrade the FPSO Allan’s anchoring system to increase its capacity and monitor anchoring forces. The FPSO will be renamed Abigail-Joseph.

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