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Frontline and Keppel combine on 'Sea Production'

Frontline and Keppel combine on 'Sea Production'

Singapore: A new entity, Sea Production Ltd, is being incorporated to develop Frontline's floating production and storage activities and Singapore's Keppel, together with the John Frederiksen company, intend to subscribe to at least a third of the new company's equity.

According to a statement, Frontline is already in talks to sell all of its floating production activities, including the FPSO Front Puffin, currently under conversion at Keppel Shipyard, to Sea Production Ltd.

Spurred on by booming offshore business, the new entity is in discussions to purchase two double-side Aframax tankers suitable for FPSO conversion and the FPSO Crystal Ocean from Seadrill Limited, another Frederiksen company. Keppel is likely to be the beneficiary of these conversion contracts, say observers.

Meanwhile, outside investors are being encouraged to buy into Sea Production Ltd, which is to be run as a separate entity. Details of other shareholders will be made available to the market within the next week, the company said.  [01/02/07]