Keppel O&M bags contracts worth some $250 million

SINGAPORE (THE BUSINESS TIMES) - Keppel Offshore & Marine (O&M), through its wholly owned subsidiary Keppel Shipyard, has been awarded contracts worth around $250 million from repeat customers.

The contracts are for the integration of two floating production storage and offloading vessels (FPSOs), Keppel Corporation said on Friday (May 6).

One contract is with BW Offshore, a unit of maritime company BW Group, to undertake the integration work on a newbuild FPSO.

Keppel Corp had in November 2021 said its O&M unit received a letter of award from BW Offshore for the integration work, adding that it was expecting the contract to be signed by early 2022.

Keppel Shipyard will install and integrate works of about 43,000 tonnes of topside modules, deck equipment and the turret mooring system, as well as provide completion and commissioning support for BW Offshore.

It expects the hull of the FPSO to arrive in Singapore in mid-2023 and be scheduled for delivery in the second half of 2024.

The other contracts are with Dutch-based floating production solutions provider Single Buoy Moorings (SBM), as well as with a joint venture between SBM and United States-based engineering company McDermott.

Keppel Shipyard will undertake the fabrication, installation and integration of topside modules for an FPSO project, and the yard will also support SBM with pre-commissioning and commissioning work.

It expects work to begin in the second half of 2022, before the FPSO's hull arrives in the first half of 2023 and be scheduled for delivery in the second half of 2024.

Late in April, Keppel O&M and Sembcorp Marine said their merger, which had been anticipated for decades, was finally in the works and would create a global offshore powerhouse valued at $8.7 billion to tap the green energy boom.

Shares of Keppel Corp were trading at $6.82 at the midday break on Friday, down eight cents or 1.2 per cent.