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Keppel Bags $Multimillion FPSO Deal

Keppel Offshore & Marine Ltd revealed Thursday that its wholly owned subsidiary, Keppel Shipyard Ltd, has secured a contract from “a repeat customer” worth around $75 million (S$100 million) for fabrication and integration work on a Floating Production Storage and Offloading vessel (FPSO).

Scheduled for delivery in the fourth quarter of 2022, Keppel Shipyard’s scope of work includes the fabrication, installation and integration of topside modules, riser balconies and spread mooring support structures, as well as supporting the customer on pre-commissioning and commissioning work. Keppel Shipyard said it will commence with pre-fabrication work on the topside components in the first quarter of next year.

When completed, the FPSO will be capable of producing 220,000 barrels of oil per day and will have an associated gas treatment capacity of 400 million cubic feet per day, according to Keppel. The contract is not expected to have a material impact on the net tangible assets or earnings per share of Keppel Corporation Limited for the current financial year, the company highlighted.

“We are pleased to secure our 140th conversion project to help meet the world’s need for energy,” Chor How Jat, the managing director of conversions and repairs at Keppel O&M, said in a company statement.

“As the world’s leader in FPSO conversion and integration projects, we have built up strong capabilities to add value to our customers’ projects and efficiently deliver high quality FPSOs, while contributing to the circular economy with our conversion solutions,” Jat added in the statement.

“With the challenges posed by Covid-19, the health and safety of our workforce is paramount. We have put in place measures to safeguard our people and maintain our operations to ensure that each project entrusted to us is delivered as planned,” the Keppel representative continued.

Last month, Keppel revealed that it had secured a contract valued at approximately $448 million (S$600 million) from “an energy company” for the engineering, procurement and construction of a vessel for the offshore renewable energy industry. In September, Keppel said it clinched contracts worth approximately $149 million (S$200 million).

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