Keppel Scores Integration Contracts For FPSO Tandem

Keppel Offshore & Marine Ltd, through its wholly-owned subsidiary Keppel Shipyard, has been awarded contracts worth around $180 million from repeat customers for the integration of two Floating Production Storage and Offloading vessels (FPSO).

The first contract is between Keppel Shipyard and BW Offshore, a fully-owned subsidiary of the BW Group, to undertake the integration work on a newbuild FPSO. This follows the Letter of Award that Keppel Shipyard received from BW Offshore in late November last year.

Keppel Shipyard will be responsible for the installation and integration works of about 43,000 tons of topside modules, deck equipment, and the turret mooring system as well as completion and commissioning support for BW Offshore. The hull of the FPSO is expected to arrive in Singapore in mid-2023, with delivery scheduled for the second half of 2024.

The company also signed contracts with SBM, as well as a joint-venture company between SBM and McDermott, to undertake the fabrication, installation, and integration of topside modules for an FPSO project.

The yard will also support SBM with pre-commissioning and commissioning work. Work is expected to begin in the second half of 2022 ahead of the FPSO hull’s arrival in the yard in the first half of 2023, with delivery scheduled for the second half of 2024.

“Despite a volatile market, we are pleased to be awarded contracts from our longstanding customers as it is a testament to the partnerships that we have built up over decades of collaboration. We are seeing signs of fundamental improvement in the market and are well-positioned to team up with customers to provide innovative, reliable, quality, and value-added solutions,” Chor How Jat, Managing Director of Conversions and Repairs at Keppel Offshore & Marine, said.

It is worth reminding that, Keppel finally came to a positive result regarding its discussions with Sembcorp Marine related to a proposed merger of the two companies. Late last month, the two inked definitive agreements for the proposed combination.

The new company will continue to serve the demand for floating production systems, such as FPSO units, and other offshore oil & gas solutions, which is estimated to amount to a $210 billion market size, by focusing on innovating and applying new technologies to reduce the carbon footprint of such structures.

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