Keppel O&M clinches $125m in new contracts

Keppel O&M chief Chow Yew Yuen said the firm's wide spectrum of capabilities allows it to work on projects ranging from oil production to offshore support services.
Keppel O&M chief Chow Yew Yuen said the firm's wide spectrum of capabilities allows it to work on projects ranging from oil production to offshore support services.PHOTO: BLOOMBERG

Two of the four deals secured by Keppel Shipyard unit in Singapore

Orders from repeat customers are keeping Keppel Offshore & Marine's (Keppel O&M) local and overseas units busy.

The firm said yesterday that it has won four contracts worth about $125 million in total. Two of the deals were secured by the Keppel Shipyard unit in Singapore.

Keppel O&M's chief executive officer, Mr Chow Yew Yuen, said: "Even in challenging market conditions, we are glad to be the choice yard for operators."

One Singapore contract is for a liquefied natural gas floating storage unit vessel, awarded by Armada Floating Gas Storage, which is a unit of Bumi Armada, a Malaysia- based offshore oilfield services provider. It is due to be completed in the third quarter of next year.

Mr Chow noted that this is the 14th conversion-upgrading project that the unit has undertaken for Bumi Armada.

The other Singapore contract is for a floating production storage and offloading vessel for Yinson Production (West Africa) - a Malaysian integrated offshore services provider - which will deploy the craft off Ghana. Work is expected to start in the first quarter of next year.

Mr Chow said the firm had worked with Yinson in 2012, and that its past experience will help to "fast-track this project".

Keppel O&M's overseas yards also landed new contracts. Keppel Fels Brasil's BrasFels shipyard in Rio de Janeiro will work on a production storage and offloading vessel to be used in Brazil by Modec Offshore Production Systems (Singapore).

The firm noted that in the last five years, BrasFels successfully completed five similar projects ahead of schedule, including three for companies affiliated to Modec.

BP Exploration (Shah Deniz) has contracted Caspian Shipyard Company in Baku, Azerbaijan, to enhance a barge, including strengthening the steel hull.

Keppel O&M said that this is the third time Caspian Shipyard Company has carried out refurbishment or enhancement works on the same vessel.

Mr Chow said the firm's wide spectrum of capabilities allows it to work on various projects ranging from oil production to offshore support services.

The firm added that the contracts are not expected to have any material impact on the net tangible assets and earnings per share of Keppel Corp for the current financial year.

Mr Chow also said Keppel O&M has had a "long track record in delivering projects on time and within budget".

"The confidence shown in us is a reflection of Keppel's proven track record in delivering quality products competitively, with high standards of safety and to customers' satisfaction," he added.

A version of this article appeared in the print edition of The Straits Times on December 30, 2015, with the headline 'Keppel O&M clinches $125m in new contracts'. Print Edition | Subscribe