Keppel Fels bags US$85 million vessel contract

Keppel Fels, the rig design and building arm of Keppel Offshore & Marine (O&M), has won a US$85 million (approx S$114.7 million) contract from Crystal Heights Holdings to build a high specification liftboat.
Keppel Fels, the rig design and building arm of Keppel Offshore & Marine (O&M), has won a US$85 million (approx S$114.7 million) contract from Crystal Heights Holdings to build a high specification liftboat.PHOTO: REUTERS

SINGAPORE - Keppel Fels, the rig design and building arm of Keppel Offshore & Marine (O&M), has won a US$85 million (approx S$114.7 million) contract from Crystal Heights Holdings to build a high specification liftboat.

Scheduled for delivery in the fourth quarter of 2017, the liftboat will be able to operate in China, the Middle East and the Gulf of Mexico, said Keppel Corporation in a statement on Monday.

Keppel Corp is the parent company of Keppel O&M.

"This latest contract from Crystal Heights is the second liftboat based on Keppel's innovative proprietary solution that Keppel has been contracted to build within a year," said Mr Wong Kok Seng, managing director of Keppel O&M (Offshore) and Keppel Fels, in the statement.

"Even as the market for drilling rigs remains depressed, Keppel has the versatility and capabilities to design and build other products that are in demand."

Crystal Heights director Kenny Cai added: "Despite the current low oil price environment, there are a large number of offshore platforms in the world that require more efficient and cost-effective solutions such as the use of a dedicated liftboat for their maintenance, upgrading as well as removal."

Crystal Heights is a company incorporated in the British Virgin Islands that specialises in the offshore oil and gas market.

Keppel's joint venture shipyard in Qatar, Nakilat Keppel Offshore & Marine, is also building a similar vessel for a Qatari oilfield service company.

The contract is not expected to have a material impact on Keppel Corporation's performance for the current financial year.

tsjwoo@sph.com.sg