Keppel Wins S$127 Million FPSO Conversion and Repair Contracts
Keppel Shipyard and Keppel Verolme have secured contracts worth a total of approximately S$127 million for the conversion of a tanker to a Floating Production Storage Offloading (FPSO) facility and the repair of a FPSO vessel, respectively.
The conversion of the VLCC Capella to FPSO Mondo is the eighth such FPSO/FSO project that Keppel Shipyard is executing for Single Buoy Moorings Inc (SBM) since 2000. The vessel is expected to be completed in third quarter 2007.
Mr. Nelson Yeo, Executive Director of Keppel Shipyard, shared, "We have recently completed the conversion of the FPSO Capixaba for SBM and are delighted to be awarded the new project with them. This speaks of the strong partnership we have built with SBM over the years."
The scope of work on the former VLCC Capella includes the installation and integration of the topside modules, installation of an external turret and helideck, fabrication and installation of a flare tower and bow modification work. Built in 1975, VLCC Capella, of 273,000 dwt, is 337 meters in length and 54.5 meters in width.
When completed, the floating system will be leased by SBM to ExxonMobil for deployment in Mondo Field, Block 15 offshore Angola for the Kizomba C Development.
FPSO Mondo will be capable of processing 100,000 barrels of oil per day (bopd) with a storage capacity for 1.6 million barrels of oil. The vessel will be moored in water depth ranging between 720 and 760 meters.
Keppel Shipyard has undertaken seven highly successful conversion projects since 2000 for SBM. They are FPSO Espadarte, Yetagun FSO, FPSO Falcon, FPSO Brasil, FPSO Serpentina, FPSO Marlim Sul, and FPSO Capixaba. FPSO Falcon and FPSO Serpentina were undertaken for operations in West Africa by ExxonMobil.
Keppel Shipyard has a strong track record of around 60 FPSO and FSO conversion and repair projects. It is currently carrying out five other FPSO and FSO conversion and upgrading projects at its yards. Major conversions projects include the floating production unit, P-53, for Petrobras, Brazil's national oil company and as well as two FPSOs from Prosafe Production.
Meanwhile, sister company, Keppel Verolme, is strengthening its track record in the repair and conversion of FPSOs.
Keppel Verolme has secured an agreement with Petro-Canada (East Coast) for the repair of Terra Nova FPSO. The scope of work comprises maintenance, inspection and modification activities on both hull and process topsides systems of the Terra Nova FPSO.
Maintenance work being carried out includes survey and overhaul of thrusters, underwater maintenance and coating, and repair to the vessel and the process systems. Inspection and modification works cover the testing of cargo tanks and pressure vessels, extension of the accommodation quarters and modifications in the process modules.
The Terra Nova FPSO is operated by Petro-Canada, one of the largest integrated oil and gas companies in Canada. It has the largest interest in Terra Nova, which is co-owned by ExxonMobil Canada Properties, Husky Terra Nova Partnership, Murphy Oil Company Limited, Mosbacher Operating Limited, Norsk Hydro Canada Oil & Gas Inc. and Chevron Canada Resources.
The vessel is expected to arrive at Keppel Verolme by mid July 2006. It is scheduled for delivery and deployment in the Terra Nova field, located 350 km ESE of St John's Newfoundland, Canada, by mid September 2006.
Keppel Verolme shipyard spans over 54 hectares in Rotterdam's Botlek area. It has three drydocks, and its largest dock has a capacity of up to 500,000 dwt. Measuring 90 meters wide with deep water in front, Keppel Verolme has the widest graving dock in Europe and is able to undertake repair and conversion of some of the world's largest semisubmersibles.
Keppel Shipyard is a wholly-owned subsidiary of Keppel Corporation Limited through Keppel Offshore & Marine Limited (Keppel O&M), a global leader in offshore rigs, shiprepair and conversion, and as well as specialized shipbuilding. Keppel O&M's near market, near customer strategy is bolstered by a global network of 17 yards in the Asia Pacific, Gulf of Mexico, Brazil, the Caspian Sea, Middle East and the North Sea regions. Integrating the experience and expertise of its yards worldwide, the group aims to be a provider of choice and a partner in solutions for the offshore and marine industry. With operating offices in Monaco, SBM is the largest member of the SBM Offshore NV Group. The owner and operator of a large fleet of FPSOs and FSOs, SBM's product line includes the supply of facilities and services for the development and production of offshore oil and gas fields as well as the systems relevant to mooring technologies.
The contracts are not expected to have material impact on the NTA or the earnings per Keppel Corporation share for FY2006.
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Company: SBM Offshore N.V. more info
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