Keppel Shipyard Ltd. has secured Floating Production Storage and Offloading (FPSO) upgrading projects from its long-term partners SBM Offshore N.V. (SBM Offshore) and Bumi Armada Berhad (Bumi Armada). The combined contract value of the two projects is $135.34 million (SGD $170 million).
The first project is from SBM Offshore to refurbish and upgrade an existing FPSO vessel, FPSO Xikomba. Work on this FPSO unit is expected to be completed by 3Q 2013.
Leased by Eni Angola S.p.A for 12 years for the development of Block 15/06, offshore Angola, FPSO Xikomba is jointly owned by SBM Offshore and Sociedade Nacional de Combustíveis de Angola, E.P. (Sonangol), Angola's national oil and gas company.
Mr. Bruno Chabas, Chief Executive Officer of SBM Offshore, said, "Long-term business partnerships are key to our performance, our ability to deliver and our ambition in furthering our lead in the FPSO market. We value our proven partnership with Keppel Shipyard. The award of the FPSO Xikomba is another milestone in this deep long-term relationship."
Keppel Shipyard's scope of work on FPSO Xikomba comprises life extension, refurbishment and upgrading of existing topside modules and turret mooring system as well as the installation and integration of new topside modules. The FPSO vessel will subsequently proceed to Angola for completion.
Keppel Shipyard's second project is to modify and upgrade Bumi Armada's FPSO Armada Claire. This includes refurbishment and life extension works as well as installation and integration of topside modules. Work is expected to commence in 3Q 2012, and complete in 4Q 2013.
Upon completion, FPSO Armada Claire will be deployed in the Balnaves Field, north-west Australia.
Mr. Hassan Basma, Executive Director and Chief Executive Officer of Bumi Armada, said, "With the trust and collaboration of committed and capable business partners, we have grown and enhanced our fleet of quality FPSO vessels. The Armada Claire project is our tenth major collaboration with Keppel Shipyard, and we are confident that it will be professionally executed."
Mr. Nelson Yeo, Managing Director of Keppel Shipyard, said, "We thank SBM Offshore and Bumi Armada for reinforcing their trust and confidence in us with these FPSO contracts. Drawing on our experiences from previous collaborations, we strive to continuously improve our performance as we move forward."
Since 2000, Keppel has delivered 14 FPSO/FSO conversion projects to SBM Offshore. Keppel Shipyard's ongoing projects with SBM Offshore include FPSO OSX 2, FPSO Cidade de Paraty and FPSO Cidade de Anchieta.
In 2011, Keppel Shipyard delivered FPSO Armada TGT 1 and FSO Sepat to Bumi Armada. It is presently working with Bumi Armada on the D1 FPSO conversion project.
The above contracts are not expected to have any material impact on the net tangible assets and earnings per share of Keppel Corporation Limited for the current financial year.
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