Keppel Offshore & Marine secures $130m contracts

Two units of Keppel Offshore & Marine (O&M) have won contracts worth a combined value of about $130 million from repeat customers for work on production units that will extract oil and gas from offshore fields.

Keppel O&M said yesterday that its wholly owned BrasFELS shipyard in Brazil has secured hull carry-over work for a floating production, storage and offloading vessel from a consortium led by energy giant Petrobras.

The vessel will be deployed at Brazil's Lula field.

This latest award is an extension to the initial work on the vessel contracted to the yard.

The additional work includes installing equipment and cables for the hull and commissioning marine systems.

Separately, Keppel Shipyard, another wholly owned unit, has won a contract from Sofec to fabricate a turret mooring system for a newbuild floating liquefied natural gas vessel bound for Mozambique's giant Coral gas field.

Keppel O&M chief executive Chris Ong said winning contracts from the two repeat customers, Sofec and Petrobras, is "a testament" to the yard group's proven track record and expertise in a comprehensive range of services and proprietary technology for production assets".

Fabrication is scheduled to commence in the first quarter of 2018, with delivery of the turret components expected in the first quarter of 2020.

Both Coral and Lula rank among the largest oil and gas fields in the world. The reserves held in these two fields provide for potential economies of scale that can help justify the costs of development and production even with low oil and gas prices.

Keppel O&M chief executive Chris Ong said winning contracts from the two repeat customers, Sofec and Petrobras, is "a testament" to the yard group's proven track record and expertise in a comprehensive range of services and proprietary technology for production assets".

Keppel Corp closed down nine cents at $7.56 yesterday.

A version of this article appeared in the print edition of The Straits Times on December 12, 2017, with the headline 'Keppel Offshore & Marine secures $130m contracts'. Print Edition | Subscribe