Keppel on track to deliver FPSO for Madura BD field

Keppel Offshore & Marine’s (Keppel O&M) subsidiary Keppel Shipyard is on track to deliver a Floating Production Storage and Offloading (FPSO) vessel to Armada Madura EPC Limited. 

Armada Madura is a joint venture between Shapoorji Pallonji Group (Shapoorji Pallonji) and Bumi Armada Berhad (BAB).

The spread-moored FPSO unit was named Karapan Armada Sterling III during a naming ceremony held earlier this month at Keppel Shipyard. The FPSO will be deployed to the Madura BD Field in Madura Strait East Java which is operated by Husky-CNOOC Madura Limited (HCML).

To remind, Keppel secured the FPSO conversion contract for Armada Madura EPC back in August 2015.

Michael Chia, Managing Director (Marine & Technology) of Keppel O&M, said, “Our strong partnership with long-time client Bumi Armada enabled us to execute this project safely and to the highest quality, with the project recording more than 3 million safe manhours without Lost Time Incidents.

“This is the third conversion/upgrading project that we have undertaken for the Shapoorji Pallonji and Bumi Armada joint venture to-date and we are certain that Karapan Armada Sterling III will be as successful as their first two FPSOs, Armada Sterling and Armada Sterling II.”

Leon Harland, Chief Executive Officer of Bumi Armada, said, “Armada Sterling III FPSO, is a unique project as she is the world’s first floating facility that has a large sulfur processing plant installed capable of producing molten sulfur. The FPSO is able to process approximately 25 tonnes of sulfur per day. It was a challenge to operate with such high sulfur levels and thanks to the capabilities and collaboration of the teams at BAB and all our partners and contractors, we have completed a fit-for-purpose solution for our client HCML.”

Keppel Shipyard’s work scope for the Karapan Armada Sterling III FPSO includes refurbishment and life extension works, upgrading of living quarters to accommodate 80 personnel, fabrication, and installation of mooring systems as well as, installation and integration of topside process modules. Karapan Armada Sterling III is designed to process 110 mmscfd scales gas, 7,500 barrels oil condensate, and is equipped with sulfur handling facilities. It has a 12-point spread mooring arrangement and has a storage capacity of 370,000 barrels.

In related news, Keppel reduced its workforce in the third quarter of 2016 by 3,080 people; 660 in Singapore and 2,420 in overseas yards.