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Keppel finalising contracts with Golar LNG on second FLNG conversion

Singapore’s Keppel Shipyard is finalising contracts with Golar Gimi, subsidiary of Golar LNG, to perform the conversion of a second Moss LNG carrier, the Gimi, into a FLNG vessel.

Keppel Shipyard, wholly-owned by Keppel Offshore & Marine, was awarded a firm contract worth $735m in July by Golar Hilli Corporation, another subsidiary of Golar LNG, to convert a Moss LNG carrier into a FLNG vessel, and the contract included options for another two similar units. The latest contract in the finalishing phase is the first of the two options.

“We are happy that Golar LNG is looking into their second FLNG vessel conversion, and is finalising discussions with Keppel Shipyard to perform this second conversion,” said Michael Chia, managing director (marine & technology) at Keppel O&M.

“This advanced discussion for the conversion of the Gimi, which follows just two months after the first firm contract with Golar Hilli, is testament to the industry’s positive reception to FLNG conversion solutions and its potential to bring small and mid-scale LNG to market, ahead of other competing solutions,” Chia added.

The contract is expected to be confirmed by October this year, and construction activities are scheduled to start from January 2015.

The conversion work scope by Keppel Shipyard includes the provision of the design, detailed engineering and procurement of the marine systems and all of the conversion-related construction services.

Meanwhile, Keppel Corp, parent firm of Keppel O&M, has through an indirect wholly-owned subsidiary entered into an agreement to purchase a 10% interest in Golar Hilli at a cash consideration of $50.

Keppel Corp said the shares purchase made by its KSI Production “strengthens the alignment of strategic interests between Keppel Shipyard and Golar LNG, and reflects Keppel’s confidence in the prospects of Golar Hilli, the world’s first FLNG vessel conversion project.”

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