Keppel, Rosneft, MHWirth set up joint venture

Keppel O&M (above) and Rosneft will have shares of 45 per cent each in the joint venture, while MHWirth will hold 10 per cent. The firm will set up a design and engineering centre in Russia.
Keppel O&M (above) and Rosneft will have shares of 45 per cent each in the joint venture, while MHWirth will hold 10 per cent. The firm will set up a design and engineering centre in Russia. PHOTO: KEPPEL

Conglomerate Keppel Corp's offshore and marine unit signed a shareholders' agreement with Russian oil firm Rosneft and Norwegian drilling equipment firm MHWirth to set up a Singapore incorporated joint venture company.

The joint venture will establish a design and engineering centre in the Russian Federation, with initial projects from Rosneft for work related to shallow-water platforms, Singapore's Keppel Offshore and Marine (Keppel O&M) said in a statement late on Thursday.

Keppel O&M and Rosneft will have shares of 45 per cent each in the joint venture, while MHWirth will hold 10 per cent.

The joint venture and the centre will adhere to existing US and European Union sanctions imposed on the Russian offshore oil and gas sector, it said.

The initial projects undertaken by the joint venture company will be from Rosneft for design and engineering work related to shallow water platforms.

It will also look to take on work from other Russian and international customers.

The deal comes as Singapore's Prime Minister Lee Hsien Loong makes his first bilateral visit to Russia.

A version of this article appeared in the print edition of The Straits Times on May 21, 2016, with the headline 'Keppel, Rosneft, MHWirth set up joint venture'. Print Edition | Subscribe