Keppel signs S$160m contracts

Singpore: Keppel Offshore & Marine (Keppel O&M) has announced that it has secured contracts worth S$160m ($105m) for projects such as Floating Production Storage and Offloading (FPSO) conversions and shipbuilding. The agreements, signed through Keppel O&M subsidiaries, will see the company convert one FPSO unit each for SBM Holdings and Emas Offshore Construction and Production (EOCP).

The conversion of the 268,865dwt VLCC for SBM is scheduled for completion in the third quarter of 2008. Upon completion, the FPSO is expected to produce up to 100,000 barrels of oil per day and will feature a storage capacity of about 1.6m barrels of oil. The vessel will be leased to the BC-10 Consortium operated by Shell in Brazil.

The second contract, with EOCP, is for the conversion of a 127,533MT shuttle tanker into LEWEK FPSO 1 for deployment in the Gulf of Thailand. While Keppel Shipyard will carry out the overall project management and completion of the FPSO, its sister yard, Subic Shipyard and Engineering will handle the repair and refurbishment works and part of the conversion. The vessel is scheduled for completion in mid 2008.

In terms of shipbuilding, Keppel's Nantong Shipyard has received an order for the construction of three 65-ton bollard pull twin-screw Azimuth Stern Drive (ASD) tugboats from Keppel Smit Towage Pte Ltd. They are due for delivery between third quarter of 2009 and first quarter of 2010.

Additionally, Keppel Philippines Marine (KPMI) has also sold two 45-ton bollard pull tugboats to Keppel Smit Towage. These two boats are being built in Keppel Batangas Shipyard and Keppel Cebu Shipyard in the Philippines and slated for completion by the third quarter of this year. KPMI delivered two similar tugs to Maju Maritime Ltd, a sister company of Keppel Smit Towage, in 2006. [24/04/07]

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