Keppel secures $130 mil worth of contracts from repeat customers

Samantha Chiew

SINGAPORE (July 16): Keppel Offshore & Marine announced that its wholly-owned subsidiaries Keppel FELS and Keppel Shipyard have secured contracts from repeat customers worth about $130 million for a newbuild dredger and the modification of a Floating Production Storage and Offloading vessel (FPSO).

The first contract was awarded to Keppel FELS by Van Oord to build a high-specification Trailing Suction Hopper Dredger (TSHD). This follows from an option granted to Van Oord based on earlier contracts entered in May 2018 for two similar dredgers.

The dredger will be built to the requirements of classification society Bureau Veritas (BV) and will be LNG ready. It will also be certified with the BV Green Passport and Clean Ship notations.

This project is expected to be completed in 1Q22.

The second contract was awarded to Keppel Shipyard by Yinson Nepeta Production, a wholly-owned subsidiary of Yinson Production, for the fast-track modification and upgrading of FPSO Allan.

In this project, Keppel shipyard will be responsible for the refurbishment and life extension works, fabrication and installation of a new riser balcony, spread mooring system and helideck, as well as modification of the vessel’s topsides and marine systems.

This project is scheduled to start in 3Q19 and expected to be delivered in 1Q20.

Upon completion, the FPSO will have a storage capacity of 700,000 barrels of oil and a processing capacity of 60,000 barrels of oil per day. It will be deployed in the Anyala and Madu fields, offshore Nigeria for First Exploration and Petroleum Development.

Chris Ong, CEO of Keppel O&M, says, “We are pleased to secure these contracts from repeat customers as it reflects the market’s confidence in Keppel O&M’s customised solutions for newbuild vessels and FPSO conversions. This is the third newbuild dredger for Van Oord and the third FPSO project for Yinson. We are able to leverage the experience of working closely with our customers as well as our engineering and construction expertise to further improve productivity on their projects.”

Shares in Keppel closed at $6.66 on Tuesday.