Sembcorp Marine's Sembawang Shipyard wins contract worth $600 million

SINGAPORE - Sembcorp Marine unit, Sembawang Shipyard, has won a contract worth about $600 million from French firm Saipem, which offers engineering and construction services.

The shipyard will convert two Very Large Crude Carriers (VLCCs) sister ships into two turret-moored floating storage production offloading (FPSO) units for the Kaombo project in offshore Angola, which is about 150 km from the coast.

Major works also include refurbishing the VLCCs, construction engineering and pre-commissioning of the FPSOs.

The two converted FPSO units will each have an oil treating capacity of 115,000 barrels per day, a water injection capacity of 200,000 barrels per day, a 100 million standard cubic feet per day (scfd) gas compression capacity and a storage capacity of 1.7 million barrels of oil.

In a statement released on July 21, Mr Ong Poh Kwee, Sembcorp Marine deputy president and Sembawang Shipyard managing director, said: "The award is a strong endorsement of our Shipyard's capabilities in the highly specialised field of FPSO conversion, modification and upgrading work."

He added that the buoyant offshore market offers exciting opportunities for both the shipyard and owners.