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Keppel Shipyard bags second FPSO conversion contract from EOC

Keppel Shipyard bags second FPSO conversion contract from EOC

Singapore: Asia-based offshore oil and gas support service provider, EOC, has awarded Keppel Shipyard Limited a S$104 million contract to convert a floating production, storage and offloading (FPSO) unit. Under this contract, Keppel Shipyard will convert a 168,000dwt Suezmax oil tanker into an FPSO unit that can produce up to 50,000 barrels of oil per day and have a storage capacity of about 680,000 barrels of oil. The unit will be leased to Premier Oil Vietnam Offshore B.V. (Premier Oil) for the development of the Chim Sao field, as part of the US$1 billion contract that the Group clinched in October.

"We selected Keppel Shipyard because our emphasis has always been on not just meeting our clients' expectations, but exceeding them," said Lim Kwee Keong, EOC's Chief Executive Office. "We have enjoyed a fruitful partnership with Keppel Shipyard, who executed our first FPSO project successfully and safely. We look to continue our relationship with Keppel Shipyard as we execute our plans for growing our number of premium FPSOs in the region."

This FPSO conversion is the second that EOC has awarded Keppel Shipyard; the first was for the Lewek Arunothai (pictured). The conversion will include refurbishment and life extension works; accommodation upgrades; the fabrication and installation of topside modules and a turret mooring system, a flare tower, a helideck and pipe racks; tank coating work; structural steel additions; and new piping systems. It will also feature an internal turret designed by EOC's associate company, London Marine Consultants.

Under the Chim Sao contract, the converted vessel will be tied to Premier Oil for up to 12 years. The project is worth up to US$527 million for the primary term of six years, and up to another US$477 million if all of the six one-year options are exercised. EOC will be operating the FPSO unit with a Vietnamese partner to perform oil and natural gas liquids processing as well as water injection at the field. Production is expected to begin in the second quarter of 2011.

On prospects for the Group given the current industry outlook, Lim said: "We expect to see growing demand for FPSOs globally as oil prices remain firm and global oil majors look to increase their capital expenditure. In addition, we continue to see a steady stream of enquiries for our other assets, such as the Lewek Champion, our heavy-lift pipelay vessel, which we expect to be fully deployed over the medium term."  [10/12/09]

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