Keppel Shipyard wins contracts worth $125 mln

An aerial view of Keppel's Benoi shipyard.
An aerial view of Keppel's Benoi shipyard.PHOTO: KEPPEL CORPORATION

SINGAPORE - Keppel Shipyard has secured four contracts worth a total of about S$125 million.

These include a floating production storage and offloading (FPSO) conversion contract as well as three repair, upgrade and modification contracts, the company said in a release on Tuesday.

The FPSO conversion project is for Armada Madura EPC, a joint venture between long-standing customer Bumi Armada, a Malaysian oilfield services provider and Shapoorji Pallonji, an Indian conglomerate.

Referring to this third conversion project for the joint venture, Mr Michael Chia, managing director (Marine & Technology) of the parent company Keppel Offshore & Marine (O&M) said that the firm is confident that this FPSO will be as successful as its first two projects, which have been performing well in India.

This is also Keppel Shipyard's 13th conversion project for Bumi Armada, he added.

"FPSOs continue to be the preferred product for deepwater production," said Mr Chia.

Work on the FPSO conversion, which has commenced, is scheduled to complete in the third quarter of 2016.

Upon completion, the FPSO will produce for the Madura Strait Block BD, which is located 65km east of Surabaya and about 16km south of Madura Island, Indonesia.

Keppel Shipyard has also been awarded major repair, upgrade and modification contracts by Totem Ocean Trailer Express, an American shipping company, Dolphin Drilling, a Norwegian offshore drilling operator and Saipem Offshore Norway, a subsidiary of Italian oil services company Saipem.

Mr Chia noted that despite the headwinds faced by the industry due to the current low oil price environment, Keppel Shipyard has been kept busy due to its track record in repair, upgrade and modification, as well as its expanded LNG capabilities.

Totem Ocean and Dolphin Drilling are new customers and Keppel Shipyard has previously worked with Saipem Offshore before.

Keppel Corp shares closed seven cents lower at S$7.45 on Tuesday.