Sponsored By

Keppel pulls plug on Azerbaijan yard

Keppel Corp has effectively pulled out of Central Asia after dropping the Baku Shipyard, its last remaining facility in a region that was once touted as being full of oil and gas potential.

Vincent Wee, Hong Kong and South East Asia Correspondent

August 10, 2018

1 Min Read
Kalyakan - stock.adobe.com

The group said in a stock market announcement that its management and operating contracts with the joint venture yard in Azerbaijan had been terminated, although Keppel Offshore & Marine (KOM) retains an 8.5% stake in the joint venture.

KOM in 2013 established together with State Oil Company of Azerbaijan Republic (SOCAR) and Azerbaijan Investment Company (AIC) the shipbuilding and shiprepair facility in Baku, Azerbaijan.

KOM had been managing and operating the facility but amid the slump in the global oil and gas industry, the Singapore-based multinational looks like it has pulled the plug on this segment.

Read More: Keppel bags $242m jackup rig order

The termination of the agreements effective June 30, 2018 were made “following the successful development, start-up and initial operational phases of Baku Shipyard, and in view of the updated operational requirements based on current business conditions,” Keppel said in its announcement, adding that management of the yard has been handed over to SOCAR.

Earlier this year, KOM wound up Caspian Shipyard Company, its other joint venture yard in Azerbaijan which it established in 1997, after letting the joint venture agreement lapse.

Meanwhile in 2014, KOM had reportedly bailed on Kazakhstan after selling its stake in Keppel Kazakhstan. This yard had seen few orders apart from a barge building contract in 2006 and one jack up rig in six years later in 2012. Meanwhile a strike had plagued management in 2013, soon after the contract to build the only jackup.

About the Author

Vincent Wee

Hong Kong and South East Asia Correspondent

Vincent Wee is Seatrade's Hong Kong correspondent covering Hong Kong and South China while also making use of his Malay language skills to cover the Malaysia and Indonesia markets. He has gained a keen insight and extensive knowledge of the offshore oil and gas markets gleaned while covering major rig builders and offshore supply vessel providers.

Vincent has been a journalist for over 15 years, spending the bulk of his career with Singapore's biggest business daily the Business Times, and covering shipping and logistics since 2007. Prior to that he spent several years working for Brunei's main English language daily as well as various other trade publications.

Get the latest maritime news, analysis and more delivered to your inbox
Join 12,000+ members of the maritime community

You May Also Like