Keppel O&M bags two deals worth $70m

Keppel Offshore & Marine (Keppel O&M) - through two wholly owned subsidiaries - has secured two contracts with a combined value of about $70 million.

In Brazil, Keppel Fels Brasil has been engaged by Modec Offshore Production Systems (Singapore) to undertake the topside module fabrication and integration of the FPSO Carioca MV30, a Floating Production Storage and Offloading (FPSO) vessel. This is the sixth FPSO collaboration between Keppel Fels Brasil and Modec, said Keppel Corp, the parent of Keppel O&M, yesterday.

In Singapore, Keppel Shipyard has won a contract to convert an LNG (liquefied natural gas) carrier to a Floating Storage and Regasification Unit (FSRU) by a leading global operator of oil and gas production vessels.

The fabrication of the modules for the FPSO will commence in the fourth quarter at BrasFels shipyard, Keppel Fels Brasil's facility in Angra dos Reis, Rio de Janeiro, in Brazil. When completed, FPSO Carioca MV30 will have the capacity to process 180,000 barrels of crude oil per day and 212 million cubic m of gas per day. The unit's storage capacity is 1.4 million barrels of crude oil. The FPSO will be deployed at the Sepia field, located in the pre-salt region in the Santos Basin, some 250km off the coast of Rio de Janeiro.

For the FSRU conversion project, apart from repair and life extension works, Keppel Shipyard will undertake shipyard engineering, installation and integration of the regasification module and upgrading of the cargo handling system. The FSRU is scheduled for delivery at the year end. It will be capable of regasifying up to 750 million metric standard cubic feet of natural gas per day.

The two contracts are not expected to have a material impact on the per-share net tangible assets or earnings of Keppel Corp for the current financial year. Keppel shares closed trading last Friday at $7.09.

A version of this article appeared in the print edition of The Straits Times on July 23, 2018, with the headline 'Keppel O&M bags two deals worth $70m'. Print Edition | Subscribe